Exhibit 3 Companies can build the business case for net-zero offerings by factoring a green premium into costs curves.
Illustrative marginal abatement revenue and cost curve for net-zero offerings
300
Not profitable
Without green premium
200
Abatement cost, € per ton of CO2 equivalent
100
0
–100
–200
Profitable
0
20
40
60
80
100
Abatement, % of total carbon abatement
Abatement, % of total
22
78
Profitable
Not profitable
300
Not profitable
With green premium
200
Abatement cost, € per ton of CO2 equivalent
100
0
–100
–200
Profitable
0
20
40
60
80
100
Abatement, % of total carbon abatement
Abatement, % of total
85
15
Profitable
Not profitable
McKinsey & Company
well as ensuring carbon transparency across the value chain. For example, to decarbonize electricity at its plants and realize its goal
long-term partnerships with suppliers to derisk procurement and substitute high-emissions inputs with low-emissions inputs is key, as
Accelerating the journey to net zero
73
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