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The Internal Market in Environmental Emissions
Author            :Hans Jensen, Chris Harris
Designation    :Head of Environment, Head of Product Development
Company        :Innogy plc Ltd
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Synopsis

This paper presents a methodology for the assessment of the potential worth and value of environmental constraints to an organisation. The first stage of this process includes the examination of one significant constraint in order to establish an internal market in that commodity. Use of this concept delivers value, where it is determined that there is a mismatch between the internal cost of the necessary actions to adhere to a constraint, and the value implicit in the external market. In addition, a technique is described that is compatible with environmental value at risk (market-VAR or eVAR). VAR determines how much money the company is confident of not losing within a specified time period and at a specified confidence level.


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IRC International Water and Sanitation Centre Water Supply & Sanitation Collaborative Council International Desalination Association
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