Ostrom evaluated the financial implications of various regulatory scenarios such as low, moderate, or high carbon taxes and fuel surcharges in each region where the client operates. We projected the client’s emissions out to the year 2040 and accounted for reductions resulting from the client’s proposed strategies as well as additional approaches recommended by Ostrom. Total emissions and costs associated with energy usage and GHGs were calculated for each mine site.
The financial stress test was used to support the business case for enhancing energy efficiency and GHG reduction programs. It illustrated the financial and environmental benefits of climate change mitigation, and highlighted strategies that could be implemented to reduce the company’s financial exposure to climate change.