Make-Buy, Outsourcing & Network Design worked example

Manufacturing Footprint Carbon Cost at 50% share of emissions subject to pricing: a worked example

Suppose share of emissions subject to pricing falls to 50%. This page works the full calculation at that level so you can see exactly which result moves and by how much. Estimates the annual carbon cost of a manufacturing footprint from priced emissions plus the overhead of measuring and reporting them.

The inputs for this scenario

  • Annual emissions from the footprint: 8,000 tCO2e/yr (held at the documented default)
  • Carbon price per tonne: 85 $/tCO2e (held at the documented default)
  • Share of emissions subject to pricing: 50 % (the input this scenario stresses; the baseline uses 70)
  • Reporting and compliance overhead: 40,000 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Carbon cost = annual tonnes x carbon price x covered share + compliance overhead.
  • Total manufacturing footprint carbon cost works out to 380,000 $ at these inputs, and this is the headline figure for the scenario.
  • Manufacturing footprint carbon cost per unit works out to 47.5 $ / piece at these inputs.
  • Variable manufacturing footprint carbon cost works out to 340,000 $ at these inputs.
  • Fixed manufacturing footprint carbon cost adder works out to 40,000 $ at these inputs.

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 26.36% below the baseline at 380,000 $.
  • It computes the annual carbon cost of a footprint by pricing the covered share of emissions and adding fixed reporting and compliance overhead. When the numbers land here, the stressed input is the lever to work; the walkthrough above shows exactly how much each output recovers as it climbs back toward the baseline.

Results at a glance

  • Total manufacturing footprint carbon cost: 380,000 $ (headline result)
  • Manufacturing footprint carbon cost per unit: 47.5 $ / piece
  • Variable manufacturing footprint carbon cost: 340,000 $
  • Fixed manufacturing footprint carbon cost adder: 40,000 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Manufacturing Footprint Carbon Cost calculator, set share of emissions subject to pricing to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.