This document provides a framework and practical guidance for performing a cost of abatement analysis. It implements Recommendation 3.4 of the Strategic Review of Australian Government Climate Change Programs: Final Report (2008) (the 'Wilkins Review') viz: "The Department of Climate Change should develop a methodology for estimating the carbon abatement cost implicit in new climate change policy proposals, to inform consideration of their relative merits."
Australian Government agencies estimating the cost of abatement and the amount of abatement achieved by a policy should follow the principles set out in this document. This methodology can also be used by other interested parties involved in assessing the cost of abatement implicit in greenhouse gas mitigation policies.
The Department of Climate Change and Energy Efficiency (DCCEE) is able to provide advice and assistance to those using this methodology. Users of this document may register their details with DCCEE to receive updates.
DCCEE welcomes ongoing comments and feedback on this methodology.
Please direct questions and comments to the following email address: costofabatement@climatechange.gov.au