Assess economic and market potential of technologies and initiatives
Stage 3
LEDS Home
Introduction to Framework Assess current country plans, policies, practices, and capacities Develop_BAU Stage 4: Prioritizing and Planning for Actions
Begin execution of implementation plans
- 2.1. Assess current country plans, policies, practices, and capacities
- 2.2. Compile lessons learned and good practices from ongoing and previous sustainable development efforts in the country
- 2.3. Assess public and private sector capacity to support initiatives
- 2.4. Assess and improve the national GHG inventory and other economic and resource data as needed for LEDS development
- Greenhouse Gas Inventory Development Toolkit
- 3a. Analytical Decision Making - Developing BAU Scenario
- 3b. Analytical Decision Making - Assessing Opportunities
- 3b.1. Assess technical potential for sector technologies
- Renewable Energy Technical Potential Toolkit
- Building Energy Assessment Toolkit
- Power System Screening and Design Toolkit
- Land Use Assessment Toolkit
- Bioenergy Assessment Toolkit
- Transportation Assessment Toolkit
- 3b.2. Assess economic and market potential of technologies and initiatives
- Clean Energy Market Analysis Toolkit
- 3b.3. Prioritize development options
- 3c. Analytical Decision Making - Developing and Assessing Low Emissions Development Scenarios
- 3c.1. Develop low emissions growth scenarios
- 3c.2. Assess institutional framework for LEDS
- Financing Initiatives Toolkit
- Policy and Program Design Toolkit
- 3c.3. Assess in-depth contributions of selected scenarios to goals across sectors
- Land-use Scenario Analysis Toolkit
- Energy System and Scenario Analysis Toolkit
- 3c.4. Perform multi-criteria impact analysis and assess stakeholder responses
- Clean Energy Impact Assessment Tool
- Sustainable Land-use Impact Assessment Toolkit
3b.2 Assess economic and market potential of technologies and initiatives
3b.2.1. Clean Energy Technologies
- Economic and market feasibility assessments, including marginal abatement cost curves
Market analysis involves assessing the economic potential of technology options identified as technically promising in the previous step.
Clean Energy Market Analysis Toolkit
One example of an economic assessment tool for a particular technology is the System Advisor Model (SAM), formerly the Solar Advisor Model.
Once the economic potential of a technology is understood it is also important to assess the general market environment related to that technology e.g., domestic demand, financing, number of manufacturers, export and import market, etc. The previous public and private sector capacity analysis should be used to frame technology specific market analyses.
3b.2.2. Land Use Initiatives
Stakeholders in this stage can use analyses of biophysical and economic mitigation potential to establish short and long-term goals. Stakeholders will want to consider the biophysical potential of the landscape to mitigate emissions and the economic costs and benefits to shift to activities with low emission or emission removals, including the market potential for goods produced using different agricultural and timber practices, opportunities to link into carbon markets, and capacity constraints in the public and private sectors. For more information on land use initiatives, see the Land Use Assessment Toolkit featured in 3b.1.
3b.2.3. Cost Curves
Once market analyses have been performed for technologies and land use initiatives, a marginal abatement cost curve can be used to model the GHG emission mitigation potentials and abatement costs of various options. A number of MACs have been developed (some are presented in the following table) and these analyses can be useful in providing background information on potential options to be considered in developing low emissions development scenarios.
3b.2.4. Table: Marginal Abatement Cost Curves
| Tool | Data Needs and Sources | Outputs | Example Products | |
|---|---|---|---|---|
| Marginal Abatement Supply Curves | Technology Cost and Performance Data Toolkit, GHG emission data- IPCC Data Distribution Centre, WRI-Earth Trends Data | Mitigation technologies and abatement costs | Mexico-McKinsey GHG Abatement Cost Curve see figure 1, ECN GHG Marginal Abatement Cost curves (NAMAC) | |
3b.2.5. FAQs and Resources
- This page was last edited on 30 July 2025, at 17:04.
- Content is available under Creative Commons Zero unless otherwise noted.
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