Both the benefits and costs of participating in the ERF depend on a range of factors. Figure 1.4 shows the economic factors that this manual covers. At the highest level, the economic business case for ERF participation depends on the relationship between:
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the co-benefits of the project (benefits in addition to the greenhouse gas emissions avoided or sequestered)
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project revenue (the value of sales of the ACCUs formally generated by the project)
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project costs, which need to include the value of alternative uses of the land opportunity cost.
Each of these elements has many more details underlying it. Figure 1.4 illustrates how they work, and each is discussed below in more detail. In addition to these broad elements, a business case must also take into account:
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the timing of revenue, co-benefits and costs
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the risks and uncertainties associated with each of the revenues, co-benefits and costs.
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