Published on July 31, 2021
The Planet Rate of Return (PRR) is one of Time for the Planet’s main indicators.
It monitors the impact of a financial investment on global greenhouse gas (GHG) emissions and, as a result, on global warming.
The indicator shows the relationship between the decrease and/or capture of greenhouse gases and the amount invested.--- youtube video ---
The CO2 Equivalent Ton
The decrease and/or capture of GHGs is expressed in tons of CO2 equivalent.
The CO2 equivalent (CO2eq) of a greenhouse gas is the same amount of CO2 required to retain the sun’s radiation and hence, to provide the same radiative forcing. Take methane (CH4). It has a radiative effect and a capacity to warm the planet 25 times that of CO2. One ton of methane released into the atmosphere is equivalent to 25 tons of CO2 emissions.
The gas with the largest global warming potential (GWP) is sulphur hexafluoride (SF6), of which 1 ton emitted equals 22,200 tons CO2 equivalent. However, it is only found in very small quantities in the atmosphere and is responsible for less than 0.3% of global warming.
The share capital in Time for the Planet is used to calculate the PRR of an investment. Time for the Planet aims to raise its share capital annually until it reaches €1 billion.
When calculating PRR, we estimate that an investment will have an impact for at least 10 years and be able to reduce GHGs significantly during this period.
Take the cost of the solar panels which is generally spread over 12 to 15 years to calculate profitability, even if they continue to operate well beyond that period.
PRR = tons unemitted CO2 equivalent X 10 (years) / Time for the Planet investment (€)
This gives the number of tons of CO2 equivalent captured or unemitted per euro invested in Time for the Planet.
Time for the Planet aims to create and develop companies with a minimum PRR of 5%. That’s 0.05 tons CO2 equivalent/euro invested, or a cost of €20 per ton of CO2 equivalent.
To compare, in 2019 the price for one ton of CO2 on the financial markets fluctuated around €25. We aim to offer a cost per ton of CO2 well below market price. Our ability to position ourselves below market price will be key to rapid and global deployment.
Calculate your impact as a Time for the Planet shareholder
An investment of €2,400 in Time for the Planet over 10 years, with a PRR of 5%, prevents at least 120 tons CO2 equivalent of emissions (€2,400 x 5%) or 12 tons CO2 equivalent/year. That’s the average CO2 emission/year of one French person.
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