Company A is evaluating an offshore investment in renewable energy to pay for its CO2-e emissions and sell the remainder (RECs) to the Australian market. The questions in this exam will present the theories and characteristics for this investment in RECs.

Sustainability practice

a- Production - Identify which are the externalities and mitigating measures whitin CO2-e production.

b -Consumption - Identify which are the externalities and mitigating measures in RECs' consumption operation.

c -Business viability in the long run - Evaluate the impact on long-term business viability. When will the Company A business be viable? Calculate Return on initial investment and use your words to explain the calculation.