Price per ton


How is the price per ton calculated?

 

The first project admitted in the BOKU system, is a reforestation project in Ethiopia, which will offset around 6,200 tons of CO2 over a period of 30 years. The price per ton, is calculated on the basis of the project development costs. A major source of costs in this project, are compensation payments made to herdsmen during the first years of cattle exclosure (see the BOKU carbon offset project and principle of carbon offsetting). This multi-year project has calculated costs as follows:

Year 1

12,500 €

Year 2

8,500 €

Year 3-30

4,000 €

Total costs

133,000 €


Taking account of biomass removal by local land users, these reforestation activities will fix around 6,200 tons of
CO2 over a period of 30 years. The total quantity of CO2 fixed, is reduced by a 15% risk margin. This functions as a buffer, so that areas potentially affected by unforeseen events such as forest fires, deforestation and other calamities (drought, termites) can be reforested and the loss of CO2 compensated.
Taking into account the risk margin, the project costs weigh in at a price of 25 € per ton of CO2. This price is approximately equivalent to other carbon-offset systems such as My Climate and Atmosfair.