The methodological framework for determining environmental costs developed by the German Federal Environment Agency (UBA) is an internationally recognized standard. On behalf of the UBA and in cooperation with partners, INFRAS has carried out two research projects were conducted as a basis for the update.
Environmental value factors reveal the hidden social costs of environmental damage. They make environmental impacts quantifiable in monetary terms and help ensure that economic and political decisions are made on the basis of facts.
With the Methodological Convention 4.0, the Federal Environment Agency is publishing a key data set and providing updated cost rates for the monetisation of environmental impacts. Together with the IÖW, EIFER, CE Delft and InterSUS, INFRAS led the two research projects on the update on behalf of the UBA.
Climate-related costs have increased significantly
The environmental value factors for greenhouse gas and air pollutant emissions have been updated, as have the application-specific environmental costs in the transportation, energy, and heat sectors.
The open-source model GIVE (Greenhouse Gas Impact Value Estimator), which models the damages caused by climate change, was used to estimate the climate value factors. At 990 euros per metric ton of greenhouse gas emissions, the new climate value factor is significantly higher than the figure used in the previous version of the methodological convention.
Research project on updating environmental costs
INFRAS contributed to the methodological update of the climate value factor calculation and developed the basis for the update of the application-oriented value factors in the transport and energy sectors. This included updating the concepts and calculation methodology as well as collecting updated data. In the transportation sector, INFRAS calculated the environmental value factors of different modes of transport and propulsion systems for road, rail, water and air transportation. All life cycle stages were considered: from energy supply to vehicle production, use and end-of-life disposal.
Environmental costs of transportation and energy production
The results show that in the transportation sector, diesel cars now have the highest environmental value factor per passenger kilometer, at 23.7 euro cents per passenger kilometer. Rail continues to have the lowest environmental value factor per passenger kilometer for long-distance travel, at around 3.9 euro cents per passenger kilometer.
The environmental value factors of electricity and heat generation can be significantly reduced by using renewable energy sources such as photovoltaics and hydropower for electricity, and solar thermal and geothermal energy for heat. Fossil fuels have the highest environmental value factor per kilowatt-hour for both electricity and heat.
Further information:
- Handbook on Environmental Value Factors - Methodological Convention 4.0 for the Assessment of Environmental Impacts
- Federal Environment Agency: Page with a brief description of Methodology Convention 4.0
Further articles on this topic:
Project team
