Make-Buy, Outsourcing & Network Design worked example

Manufacturing Footprint Carbon Cost at 81% share of emissions subject to pricing: a worked example

Push share of emissions subject to pricing up to 81% and the picture changes. This example computes every intermediate figure at that operating point. Use it when comparing the carbon exposure of alternative plant locations or network designs as part of a make-buy decision.

The inputs for this scenario

  • Annual emissions from the footprint: 8,000 tCO2e/yr (unchanged)
  • Carbon price per tonne: 85 $/tCO2e (unchanged)
  • Share of emissions subject to pricing: 81 % (raised for this scenario; the documented default is 70)
  • Reporting and compliance overhead: 40,000 $ (unchanged)

Working through the calculation

  • Applying the documented formula (Carbon cost = annual tonnes x carbon price x covered share + compliance overhead) to the inputs above produces each figure below.
  • At this operating point the engine returns 590,800 $ for total manufacturing footprint carbon cost, the number this scenario is built around.
  • At this operating point the engine returns 73.85 $ / piece for manufacturing footprint carbon cost per unit.
  • At this operating point the engine returns 550,800 $ for variable manufacturing footprint carbon cost.
  • At this operating point the engine returns 40,000 $ for fixed manufacturing footprint carbon cost adder.

How this compares with the baseline

  • Against the tool's baseline example, where share of emissions subject to pricing sits at 70% and the headline result is 516,000 $, this scenario comes in 14.5% above the baseline at 590,800 $.
  • It computes the annual carbon cost of a footprint by pricing the covered share of emissions and adding fixed reporting and compliance overhead. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Total manufacturing footprint carbon cost: 590,800 $ (headline result)
  • Manufacturing footprint carbon cost per unit: 73.85 $ / piece
  • Variable manufacturing footprint carbon cost: 550,800 $
  • Fixed manufacturing footprint carbon cost adder: 40,000 $

Run it with your numbers

  • Every input above is editable in the live Manufacturing Footprint Carbon Cost calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.