Climate action undertaken by companies, primarily focuses on measuring, reducing, and offsetting greenhouse gas emissions. Widely adopted in Europe and globally, there are several pathways to achieve this objective.
Over the course of three successive articles, we will decode the market benchmarks on (i) measuring the impact of a company's emissions, (ii) the various climate commitments and emission reduction actions, and (iii) certification labels framing the final stage of emissions offsetting.
After discussing the commitments and actions taken by companies to reduce carbon emissions, the final step in the decarbonization strategy involves offsetting the remaining emissions through carbon credits.
The Net Zero objective
The Net Zero framework is essential for achieving global climate goals by reducing greenhouse gas emissions and promoting the transition to a more sustainable economy. It fits within the following contexts, which provide guidelines and recognized approaches for effective climate action:
The Intergovernmental Panel on Climate Change (IPCC) recognizes carbon offsetting as a necessary but secondary component in the fight against climate change. The IPCC emphasizes that emission reductions must be prioritized before any offsetting, which must be rigorously certified to ensure its effectiveness and provide additional environmental and social benefits.
The Science Based Targets initiative (SBTi) framework proposes the use of carbon credits as an option to neutralize a company's residual emissions once its short- and long-term reduction strategy has been implemented, and as a component of the "Beyond Your Own Value Chain" (BVCM) concept. (ref. BVCM Article)
The Net Zero Initiative (NZI) by Carbone 4, in pillar C "increase of carbon sinks," allows companies to support projects to develop global carbon sinks. This framework includes not only carbon credits but also verified projects that do not generate credits (philanthropy).
Climate Contribution Projects
Carbon offset projects can be developed directly by companies seeking to offset their emissions, by organizations specializing in restoration activities, or by professional project developers like Apolownia. These projects must follow a methodology certified by a recognized label and be audited by an external validation body. Once validated, the project will be eligible to generate carbon credits, based on the amount of CO2 absorbed.
These credits are traded on the voluntary carbon market by credit holders and purchasing companies. They will then be used by a company to "retired" them for offsetting its emissions and directly support a climate project.
A well-known alternative is climate philanthropy, which does not generate carbon credits but offers tax benefits. This type of project allows companies to support environmental initiatives while benefiting from tax incentives, without relying on the carbon credit system. Although the company does not offset its emissions in the sense of the voluntary carbon market, it still contributes to the previously mentioned climate goals.
Labels
A multitude of labels, both private and public, have emerged with the voluntary carbon market, each developing its own certification methodologies for projects. Despite their specifics, these labels all rely on common principles to ensure the integrity of carbon credits :
Real: Emission reductions must be actual and achieved.
Additional: Reductions must go beyond what would have occurred without the project.
Measurable: Reductions must be quantified accurately and reliably.
Permanent: Reductions must be durable over time.
Unique: Each credit must represent a unique reduction, with no double counting.
Transparent: Methodologies and certification processes must be clear and accessible.
Conservative: Reduction estimates must be cautious to avoid overstating environmental benefits.
The most well-known labels that have emerged with the voluntary carbon market include:
VERRA: This label manages the Verified Carbon Standard (VCS), the most widely used standard for carbon credit certification. It offers certification based on rigorous and verified methodologies to ensure the quality and credibility of offset projects (recently recognized by ICVCM for high integrity).
Gold Standard: Founded by WWF and other NGOs, the Gold Standard certifies projects that contribute not only to carbon emission reductions but also to additional sustainable development benefits, such as improving the living conditions of local communities (recently recognized by ICVCM for high integrity).
Label Bas Carbone: Developed in France, this label evaluates carbon offset projects according to strict environmental performance criteria. It focuses on local initiatives and aims to support projects that contribute to ecological transition in France.
Other Labels:
Riverse: Specializes in aquatic ecosystem restoration projects.
Plan Vivo: Focuses on sustainable land management and reforestation projects that provide social and environmental benefits.
Winrock: Supports various projects related to land management, emission reductions, and sustainable development.
Woodland Carbon: Specializes in carbon sequestration projects through forest planting and management.
Climate Action Reserve: Offers rigorous standards for the certification of emission reduction projects, particularly in the waste management and agriculture sectors.
Which Label to Choose?
At Apolownia, we primarily recommend the VERRA label. Recently, challenges have led to a substantial strengthening of its methodologies and practices. The International Carbon Reduction and Offset Alliance (ICVCM) has emerged partly to support and enhance the standards of VERRA and other labels. VERRA stands out due to its detailed methodologies and numerous additional tools to ensure the quality of carbon offset projects.
Gold Standard also represents a strong alternative to VERRA, offering high-quality certification with a particular focus on additional sustainable development benefits.
For projects aiming to make a specific impact at the national level, especially in France, the Label Bas Carbone is an excellent option. This label is particularly suited for local initiatives and may be the only option available for certain industries subject to national regulations.
ABOUT APOLOWNIA
Apolownia is a mission-driven company committed to making a significant impact in the climate sector.
We support businesses and funds willing to engage in long-term and impactful decarbonization strategies - within and beyond their own value chain - by designing, implementing and monitoring science-based carbon reduction projects that restore natural ecosystems.
Through technology and innovative solutions, we aim at shaping a resilient and environmentally friendly world, by encouraging the decarbonization of the economy and supporting social and environmental initiatives.
You can drive positive change for the climate, biodiversity and local communities.
Contact us to engage or for more information. Find us on www.apolownia.com.
Sources :
Comments