A growing number of local authorities have the strong will to take concrete steps to tackle climate change by the implementation of local climate plans. Originally of an indicative nature, these plans are becoming more stringent in phase with the progressively more ambitious national and European targets. Their elaboration therefore increasingly requires studies that use a sound and rigorous economic approach. The scientific ambition of the project ?Integrated Territorial Economic Approach for Climate’ (AETIC in French) is to establish the basis of a generic, exhaustive and rigorous methodology for implementing cost effective climate and energy policies at the scale of urban territories. This methodology will be applied to the Grenoble Community of agglomeration and will lead to the analysis of its Local Climate Plan. The approach adopted in this project aims to identify, quantify and analyse in economic terms the whole set of GHG emission reduction options for an agglomeration in the three following major sectors: - The transport sector in connection with ?land-use’ and urban dynamic issues and the development of large scale infrastructure projects. - The building sector and the issues of thermal rehabilitation of the existing building stock. - The production and distribution sector of local and/or renewable energy. Consequently, the different abatement options identified will be organised by merit order according to their potentials and costs (through sets of Marginal Abatement Cost curves) so as to build an economically efficient GHG abatement program. In this study, the definition from the outset of two contrasted and systemic transport/land use scenarios will structure the choice and the possibility of implementing emission abatement options in the building and energy sectors. This articulation reflects the taking into account of the systemic and incremental dimensions of policies and technology implementation in the prospect of sustainable urban development. The project is developed for the agglomeration of Grenoble but one of its objectives is to test generic methodologies for the establishment of Local Climate Plans that are applicable to other cities.