New software helps calculate direct, indirect carbon costs

A Norwegian startup has developed a software programme that lets organisations calculate which of their activities have the greatest cost in terms of carbon dioxide emissions.

Klimakost (Climate Cost), developed by a new company called MiSA, calculates the sum of both direct and indirect emissions related to products and/or services from municipalities and companies. The tool is based on a combination of emission statistics and national economic transactions.

MiSA was founded by four current or former students from the Norwegian University of Science and Technology (NTNU).

The Klimakost software lets users to choose from 56 types of businesses and industries to see which activities or materials account for the greatest amount of greenhouse gas emissions.

For example, if you work in the insurance industry, 20 per cent of the greenhouse “costs” of doing business come from heating, electricity and transport. In contrast, 40 per cent of the emissions in the insurance industry occur abroad, from activities such as producing the metals that are used to make computers or components of office furniture.

The idea behind the software is to make it easier for organisations to make informed decisions by using a tool that shows where the biggest benefits can be had from emission cuts.

One inspiration for the software is the increasing prevalence of “green” branding and carbon footprint accounting for common consumer products. Beginning in 2010, for example, France will require companies to inform French consumers the amount of emissions that their new TV has caused in China, if it is produced there.

Similar provisions are in the works in other EU countries. This poses a potential financial risk to businesses that aren’t prepared to address the requirements. The climate summit in Copenhagen, which kicked off today, may further add to the impetus to create carbon labels or green branding. There may also be a push from China to get buyers of finished products to pay their fair share of greenhouse gas emissions that result from the manufacture of those products in the countries of origin.

Klimakost considers emissions from the entire value chain, from cradle to grave. It was developed with support from Innovation Norway. The emissions model is based on statistics from Statistics Norway, and includes exchanges between sectors of the economy, imports and exports to other countries, and national emissions figures.

MiSA’s founders — Johan Pettersen, Christian Solli, Hogne Nersund Larsen and Håvard Bergsdal — are still in the early phases of getting their new company up and running. But they hope their model will help politicians make informed decisions when choosing green technologies for investment. For example, they say, while 10 buses that burn biofuel might garner a great deal of attention, a city might get much more environmental benefit by upgrading an entire municipal fleet so it’s more fuel efficient.