Introducing the Integrated Net Present Value Framework

The Integrated Net Present Value (iNPV) framework addresses the failure of traditional cost-benefit analyses to account for the full value of process modernization in US light manufacturing. Developed by RMI and Schneider Electric, the framework provides a method for measuring and monetizing value streams across categories such as operational flexibility, risk mitigation, and market differentiation to improve investment decision-making for decarbonization.

• Traditional cost-benefit analyses in the US light manufacturing sector frequently undervalue technological transformations because they fail to incorporate risk mitigation and additional revenue streams into quantitative hurdle rates.
• The iNPV framework identifies several specific value categories and streams that can be monetized, including operational flexibility (energy efficiency and O&M savings), risk mitigation (fuel price hedging), reliability via distributed energy resources (outage cost avoidance), and market differentiation (price premiums on sustainability branded goods).

APA

RMI (2025). Introducing the Integrated Net Present Value Framework. https://rmi.org/resources/introducing-the-integrated-net-present-value-framework/

Chicago

RMI. Introducing the Integrated Net Present Value Framework. 2025. https://rmi.org/resources/introducing-the-integrated-net-present-value-framework/.

Wikipedia

{{cite report |author=RMI |title=Introducing the Integrated Net Present Value Framework |date=18 November 2025 |url=https://rmi.org/resources/introducing-the-integrated-net-present-value-framework/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2025introducing, author = {{RMI}}, title = {{Introducing the Integrated Net Present Value Framework}}, institution = {RMI}, year = {2025}, month = nov, url = {https://rmi.org/resources/introducing-the-integrated-net-present-value-framework/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }