“The Carbon Payback Period (CPP) helps assess how long it takes for upfront embodied carbon (e.g., from building materials) to be offset by operational savings. However, according ARUP’s “Time-value of carbon” report, early reductions in embodied emissions hold more weight than future operational savings due to the cumulative and long-lasting nature of greenhouse gases in the atmosphere.”
According to ARUP’s “Time-value of carbon” report, the timing of carbon reductions is crucial. The time-value of carbon recognizes that the environmental impact of a unit of carbon emitted today is greater than the same unit emitted in the future, due to the cumulative and long-lasting nature of greenhouse gases in the atmosphere.
There is still considerable debate about the value of delaying carbon emissions. The report highlights three key arguments:
Buying Time: Delaying emissions buys time for future technological advancements.
Static Time-Horizon: Emissions today have a greater cumulative impact than those delayed.
Social Time Preference: Reducing emissions now benefits current generations more.
Incorporating these principles into whole-life carbon assessments (WLCA) leads to more strategic decisions, with an emphasis on early action for long-term sustainability.
Read the full report here: https://www.arup.com/insights/the-time-value-of-carbon/