Internal Carbon Pricing

Ferrovial uses internal carbon pricing as a management tool to support investment decision-making and the implementation of decarbonization measures that facilitate the achievement of its climate targets.

This approach forms part of its Climate Strategy and is applied across all business lines of the company. It is also aligned with its Deep Decarbonization Path (DDP) and with its climate targets validated by the Science Based Targets initiative (SBTi).

Ferrovial applies a combined approach based on:

• An implicit carbon price, derived from the DDP.
• A shadow carbon price for new investments.

Implicit Carbon Price

The implicit carbon price is based on the abatement cost of the decarbonization levers included in the DDP, with an average abatement cost of approximately €95 per tonne of CO₂e (~103 USD), varying depending on the technology and type of project. This price is used as a reference for designing the decarbonization roadmap from a cost-efficiency perspective.

These levers include the consumption of renewable electricity, energy efficiency measures, the exploration of alternative technologies for low-emission heavy machinery, the transition to a more efficient and low-carbon vehicle fleet, and the promotion of biofuels.

Shadow Carbon Price

The shadow carbon price is used to economically quantify the risks associated with carbon in the most relevant investments. This methodology considers the entire life cycle of the infrastructure in terms of emission scopes (Scope 1, Scope 2 and Scope 3) and its duration.

For the calculation of these prices, project type, geography and time horizon are taken into account. The average prices applied are €62 (~67 USD) per tonne of CO₂e in 2030, €118 (~127 USD) per tonne of CO₂e in 2040 and €178 (~192 USD) per tonne of CO₂e in 2050.

The main international reference sources are the International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA), as well as other regulatory mechanisms such as emissions trading systems. This tool is currently under review, update and improvement to enhance its effectiveness.

This approach allows the cost of carbon to be integrated into investment and decarbonization processes, supporting the implementation of Ferrovial’s decarbonization strategy.