FAQ's
& Guides
From basic information about eco-conscious practices to sustainable strategy recommendations, our FAQs aim to provide comprehensive answers to common queries about frequently used terminologies, green and sustainable practices, and their environmental impact.
What is sustainability?
The word sustainability comes from ‘to sustain’, which means to provide support and prolong or preserve something. What we hope to preserve, and support is life on planet Earth. Thinking about this definition, we can view sustainability as an approach to life that causes the least possible harm to the natural world or living organisms.
Did You know?
In 1987, the United Nations Brundtland Commission defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.”
Source: https://www.un.org/en/academic-impact/sustainability
Why is sustainability important?
The main goal of sustainability is to protect the planet so that future generations will not suffer. The resources on the planet are finite, but we’re currently not being considerate of that.
Our actions now shouldn’t be at the expense of our fellow creatures or humans, so it’s important to be aware of sustainability in our daily lives so that we don’t cause more irreparable damage to the Earth.
What are some examples of sustainability?
There are different ways to be sustainable. One example is green (or renewable) energy – wind power, for example, is a free, natural, and infinite resource that doesn’t cause harm to others but does help to keep society functioning.
Another example is creating, maintaining, and looking after green spaces. The green spaces and plants improve air quality, improve water retention and reduce soil erosion, to name a few benefits.
What are the benefits of sustainability?
It benefits the economy by reducing wasted time, effort, and power and finding a balance between growth and responsibility. It benefits society by building up communities and supporting those who are most vulnerable.
What is sustainable technology?
What is meant by the green economy?
What is climate change?
Climate change is the long-term shift in weather patterns and global temperatures, often seen on a large scale. It’s a natural part of life and existed for centuries before humanity was born, but when we talk about climate change today, we’re normally referring to the fast rise of temperatures that we’ve seen in the last 100 years as a result of human activity.
What are the biggest causes of climate change?
There are several main causes of climate change. The biggest one is the burning of fossil fuels, as this is the primary cause of global warming as a result of more greenhouse gases going into the atmosphere. The other big causes of climate change are deforestation, as this releases C02 and halts the release of Oxygen, and many practices in the agricultural industry.
What is the impact of climate change?
The impact of climate change is extremely far-reaching, affecting our environment, fellow living creatures, and society. Some of the biggest repercussions of climate change include extreme weather events like flooding and droughts that lead to forest fires; mass extinctions of animal and plant species; melting ice glaciers that lead to rising sea levels; and changing wildlife habitats that can negatively affect many ecosystems.
What are fossil fuels?
The three main fossil fuels are coal, crude oil, and natural gas. They’re named fossil fuels because they were formed from the fossils of plants and animals that lived millions of years ago, and their origins are the reason why they have a high carbon content. Fossil fuels are extracted using a range of methods, including mining, drilling, fracking, and acidizing, all of which are extremely harmful.
What is renewable energy?
Renewable energy comes from energy sources that replenish themselves and are, therefore, often naturally sustainable. For example, wind and sunlight are powered by nature itself, and so we can always rely on them for energy as long as the weather permits it. Renewable energy has been around for centuries in the form of waterwheels and windmills, but it was first used commercially in 1927.
There are 5 types of resources in particular that currently dominate renewable energy production.
- Solar Energy
- Wind Energy
- Geothermal Energy
- Hydro-Energy
- Ocean Thermal Energy
What is my carbon footprint?
A carbon footprint can belong to an individual or company and is essentially a measure of the total amount of greenhouse gasses released into the atmosphere as a result of your actions. It’s usually measured in tonnes of CO2e. Reducing your carbon footprint is one tangible way you can try to make a difference and become more sustainable.
What does greenwashing mean?
Greenwashing is when a company tries to market itself as environmentally friendly or sustainable without actually working to reduce its environmental impact or become more ethical. Essentially, it’s a deceitful advertising tactic used to appeal to those who want to shop sustainably.
Can sustainable technology help save the world?
The role of technology is certainly a huge one when we contemplate saving the world from environmental, economic, and social collapse. Technologies such as renewable energy and electric vehicles are undoubtedly game-changing, so we hope that even more solutions will arise shortly. However, we can’t just rely on technology – human behavior and simple actions will make all the difference.
What is a circular economy?
A circular economy is a model that ensures materials are reused and recycled as long as possible instead of disposing of them. By practicing a circular economy, we can reduce a significant amount of waste. The challenges are designing and developing products to be easily reused or recycled. We also need to develop systems to reuse and recycle materials efficiently.
What is a carbon offset?
A carbon offset is a mechanism that allows individuals and companies to offset their carbon emissions by investing in projects that reduce greenhouse gas emissions, such as renewable energy or reforestation.
What is a green bond?
A green bond is a type of bond that is issued to finance environmentally sustainable projects, such as renewable energy or energy-efficient buildings.
What is a sustainability certification?
A sustainability certification is a designation given to companies, products, or services that meet certain environmental and social standards, such as Fair Trade or LEED certification.
How can companies incorporate sustainability into their marketing strategies?
Companies can incorporate sustainability into their marketing strategies by promoting sustainable products and practices, communicating their environmental and social responsibility efforts, and educating consumers about the benefits of sustainable living.
What is sustainable packaging?
Sustainable packaging refers to packaging materials and designs that minimize their environmental impact. This can include using recycled or biodegradable materials, reducing the amount of packaging used, and designing packages for efficient shipping and storage.
What are some sustainable alternatives to using plastic bags?
Some sustainable alternatives to plastic bags include reusable cloth bags, paper bags made from recycled materials, and biodegradable bags made from materials like cornstarch.
What is a sustainable supply chain?
The sustainable supply chain is a system in which companies prioritize environmental and social responsibility throughout the production and distribution of their products, including responsible sourcing and ethical labor practices.
What is the role of sustainable finance in promoting a sustainable economy?
Sustainable finance involves investing in companies and projects that prioritize sustainability and have a positive impact on the environment and society. It can help to promote a sustainable economy by directing capital towards sustainable initiatives and promoting more responsible business practices.
What is sustainable architecture?
Sustainable architecture is an approach to building design that emphasizes energy efficiency, the use of sustainable materials, and the minimization of environmental impact.
What are the benefits of calculating Scope 4 emissions?
Calculating Scope 4 emissions offers several benefits:
Holistic impact view: Offers a complete picture of a company’s environmental impact, including the positive effects of its products and services.
Innovation drive: Encourages innovation in product and service design focused on sustainability, leading to reduced environmental impacts.
Reputation enhancement: Demonstrates a company’s commitment to comprehensive environmental stewardship, improving corporate reputation.
Informed decision-making: Helps in understanding the broader implications of business activities, guiding decisions on sustainable projects and investments.
Strategic partnerships: Aids in choosing suppliers and partners aligned with sustainability goals, enhancing overall environmental impact.
Technological advancement: Fuels research and development towards solutions that not only reduce emissions but also contribute to avoiding them.
Measuring Scope 4 emissions aligns businesses with more ambitious and holistic sustainability goals. This proactive stance is essential in today’s increasingly eco-conscious business landscape.
Is there a future for Scope 4 emissions?
The future of Scope 4 emissions appears to be on a promising trajectory. Currently, the reporting of Scope 4 emissions lacks a uniform methodology, leading to inconsistencies across different industries. This gap highlights the urgent need for an internationally recognized standard, which ensures credible and transparent reporting of these emissions.
What’s the difference between the voluntary carbon market and the compliance carbon market?
The difference between the Voluntary Carbon Market and the Compliance Carbon Market goes beyond the simple distinction between voluntary and mandatory participation. Several characteristics significantly differentiate them.
Let’s start with the Voluntary Carbon Market (VCM). This market represents an approach based on the willingness of organizations or individuals to actively participate and offset their carbon emissions through the purchase of credits. In the context of the VCM, the purchase of carbon credits is a discretionary choice, without any government obligations binding it.
Organizations participate in this market primarily to demonstrate a voluntary commitment to sustainability and to offset their emissions beyond regulatory requirements. The voluntary market can offer more flexibility and a greater variety of options for emissions offsetting, allowing organizations to choose projects that reflect their specific values and objectives.
On the other hand, the Compliance Carbon Market is created in response to legally binding emission reduction targets established by regional, national, or international agreements. These markets operate through Emission Trading Systems (ETS), regulated by carbon emission reduction regimes. ETS set a maximum limit or “cap” on carbon emissions allowed in specific sectors or countries. Entities involved in the scheme must obtain an amount of emission allowances that corresponds to their emissions.
Purchasing carbon allowances in the compliance market allows entities to exceed their carbon budget, while entities that emit less than their target can sell excess allowances to generate financial revenue.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
What is a carbon sink?
Carbon sinks are areas of vegetation (e.g., forests, grasslands, croplands, wetlands) that absorb more carbon dioxide and other greenhouse gases than they emit.
How can the integrity of an investment in carbon credits be effectively ensured?
To ensure the integrity of an investment in carbon credits, it is important to take several measures. Firstly, conducting a thorough preliminary analysis is crucial (Due Diligence). This involves researching the credibility, industry expertise, and compliance of the company offering the carbon credits.
It is essential to verify the authenticity of carbon credits by ensuring they are generated from legitimate projects that genuinely reduce carbon emissions. The methodology used for emissions reductions should be scrutinized, and it should be confirmed that the credits are retired or canceled to prevent duplication.
Seeking certifications and independent verifications from reputable third-party organizations, such as the Verified Carbon Standard (VCS) from Verra or the Gold Standard, assures the integrity of the carbon credits. These certifications indicate that the projects or programs have undergone rigorous assessment and adhere to recognized standards.
Considering broader environmental, social, and governance (ESG) factors is also important. Evaluating carbon offset projects based on these criteria ensures that they contribute not only to emissions reductions but also to wider positive impacts on the environment, local communities, and sustainable development.
Lastly, collaborating with reliable carbon credit providers who have proven industry experience and a solid reputation is crucial. Trusted partners can offer increased security and ensure that carbon credits are managed correctly.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
What are the challenges associated with carbon credits?
Several challenges are associated with carbon credits, including accurately measuring emissions, identifying reliable offset projects, cost management, and ensuring compliance with evolving regulations.
Additionally, a significant concern is the risk of misrepresentation or exaggerated claims of environmental sustainability, commonly known as Greenwashing, through the use of carbon credits. It is crucial to establish transparent and credible verification and certification processes to prevent the misuse of carbon credits for Greenwashing purposes.
Furthermore, ethical considerations stemming from the concept of ‘Pay to Pollute‘, where entities can pay for carbon credits instead of implementing real emission reduction measures, make the public tend to distrust these approaches.
Addressing these challenges requires strong governance, active stakeholder engagement, and continuous monitoring to sustain the integrity and effectiveness of carbon credit mechanisms.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
What are the benefits of companies adopting carbon credits?
Companies can benefit in several ways from the adoption of carbon credits. Purchasing carbon credits allows companies to achieve their corporate decarbonization goals while supporting projects that capture, absorb, or avoid CO2 emissions, with positive impacts on local populations and biodiversity.
Every time a company chooses to offset its corporate emissions through the purchase of carbon credits, it not only achieves an important goal but also promotes the development of new projects with a high environmental and social impact. This helps mitigate the impact of carbon emissions and supports initiatives to improve the well-being of local communities and environmental conservation.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
How is a carbon credit different from a carbon offset?
A carbon credit is a tradable request, that represents a certain amount of carbon dioxide being removed from the atmosphere, in exchange for a carbon footprint that’s already been made.
A carbon offset, on the other hand, refers to the action of compensating for greenhouse gas emissions by supporting projects that reduce emissions or remove carbon dioxide from the atmosphere. Offsetting involves purchasing carbon offsets to counterbalance one’s own emissions, effectively balancing the carbon footprint.
Source: https://greenly.earth/en-us/blog/ecology-news/5-questions-to-understand-carbon-credits
What are the benefits of investing in carbon Credits?
Carbon credits offer several benefits when it comes to addressing climate change and reducing the levels of harmful greenhouse gasses in the atmosphere.
– Reduction in greenhouse gas emissions – Carbon credits incentivize businesses (and individuals) to invest in projects that help to reduce greenhouse gas emissions.
– Market-based approach – Carbon credits leverage market mechanisms to tackle climate change by establishing a marketplace that incentivizes investment in emission reduction projects. This approach fosters innovation, efficiency, and cost-effectiveness in achieving emissions reduction targets.
– Encourages sustainability – Carbon credits incentivize the adoption of sustainable practices and technologies. Companies and individuals are motivated to reduce their emissions and invest in renewable energy, energy efficiency, and other clean technologies.
– Economic opportunities – By supporting the growth of green technology and innovation, carbon credits can create economic opportunities, which may also lead to job creation and economic growth.
– Financing mechanism – Carbon credits help to fund and support projects that may otherwise have failed to get off the ground.
– Corporate social responsibility (CSR) – By purchasing carbon credits, companies can demonstrate their commitment to sustainability and corporate responsibility.
Source: https://greenly.earth/en-us/blog/ecology-news/5-questions-to-understand-carbon-credits
How can you invest in carbon credits?
Let’s take a closer look at some of the different ways to invest in carbon credits:
Voluntary Carbon Markets – Voluntary carbon markets allow both individuals and companies to purchase carbon credits voluntarily, in order to offset their emissions. These markets offer a variety of projects to invest in, for example, renewable energy projects, reforestation initiatives, or methane capture projects.
Compliance Carbon Markets – Compliance carbon markets operate under government-regulated schemes, such as the European Union Emissions Trading System (EU ETS). These markets require companies to obtain and surrender a certain number of carbon credits to comply with emissions regulations. Investors can take part in these markets by purchasing and trading carbon credits within these frameworks.
Carbon Funds and Exchanges – Carbon funds and exchanges act as intermediaries between buyers and sellers of carbon credits. These intermediaries use investor funds to invest in various carbon-offsetting projects. They also manage the process of purchasing and retiring carbon credits on behalf of investors.
Climate-Focused Funds and ETFs – Some investment firms offer climate-focused funds or exchange-traded funds (ETFs) that include exposure to carbon credits and other climate-related investments. They allocate investments to projects that reduce emissions or support green technologies.
Green Bonds – Green bonds are debt instruments that are issued by governments, or corporations, to finance environmentally sustainable projects (including those that generate carbon credits). Investors can buy green bonds and indirectly support carbon reduction projects.
Source: https://greenly.earth/en-us/blog/ecology-news/5-questions-to-understand-carbon-credits
What are emissions trading schemes?
Emissions trading schemes, also known as emissions allowances, are regulated markets where businesses transact certificates that allow the owner of that certificate to pollute (an externality of their business activity).
The EU Emissions Trading Scheme (ETS) is the most advanced in the world. The EU sets a limited (and annually decreasing) number of “pollution allowances” to be issued to businesses (some of which are given for free, whilst others are sold), which effectively limits (and gradually enforces a decrease in) the total emissions within the European block.
In 2021, China launched its country-wide emissions cap-and-trade system, after being postponed since 2015, and it quickly became the world’s largest. That said, it’s still quite nascent, especially when it comes to its secondary trading. California runs a similar cap-and-trade system and it’s one of the most developed schemes alongside Europe’s.
The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) was developed by the International Civil Aviation Organization (ICAO) and was adopted in October 2016. Its goal is to have carbon-neutral aviation growth from 2020.
The scheme is voluntary and is supposed to work until 2035 at least. The total demand for those 15 years is estimated at 2,700 million tons of CO2 equivalent in offsets
Source: https://www.green.earth/blog/frequently-asked-questions-faq
https://www.green.earth/blog/frequently-asked-questions-faq
What is a cap-and-trade system?
Most carbon credits are part of cap-and-trade systems, which involve a cap on the amount of carbon dioxide companies can emit and a market system through which companies can buy, sell, and trade their credits.
Companies involved in these systems receive carbon credits, so they can participate in economies that monitor and regulate carbon emissions. Usually, the government sets the emissions caps for each industry and determines the penalties for exceeding the maximum emissions levels.
Companies receive carbon credits, which allow them to emit carbon dioxide, as their allowance toward the cap, or they can sometimes purchase carbon credits at auction. The cap is the number of carbon dioxide emissions the industry is not to exceed, and the allowance is each company’s share of permitted emissions.
Source: https://www.green.earth/blog/frequently-asked-questions-faq
How can verification and transparency of offsets drive market demand?
Carbon offsetting voluntarily could be a game changer, providing funding to projects that avoid and remove carbon from the atmosphere. Yet there is scope to improve the transparency of various carbon crediting mechanisms and a need for standardization of crediting and accounting. This would enhance customer trust in the offsets offered, resulting in higher market volumes and a real, functioning market. Large customers but also national and supranational governments should demand more standardization and regulation of this market to make this a reality in the near term.
Source: https://www.green.earth/blog/frequently-asked-questions-faq
What standards are available when assessing the carbon footprint?
The CF assessment can be applied at the level of the products/services, the organization, the company, the local government, or the entire country. At each level, a different standard is used. For products/services, it is recommended to use the GHG Protocol Product Accounting & Reporting Standard, the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard, and PAS 2050:2008. The ISO 14067 standards (in preparation) extend the range of options for assessing products. For companies and country-level assessments, the GHG Protocol Corporate Standard and Scope 1 and Scope 2 can be used.
How fast are the poles melting?
Due to a phenomenon called “polar amplification,” the North and South Pole are experiencing more severe climate changes than any other area on Earth. Ice caps have melted more in the last twenty years than in the last ten thousand years combined. In addition to the destabilizing effects on arctic ecosystems, this has had a profound effect on global sea levels.
Greenland’s ice sheet alone holds the equivalent of 7 meters worth of sea level rise. In 2012, the sheet experienced a massive melt, the likes of which had never been seen since researchers began gathering data in 1979. By July 12th, 98% of the entire ice sheet was submerged under a layer of water.
What are the sustainable development goals?
The Sustainable Development Goals (or SDGs) were created in Rio de Janeiro in 2012 at the United Nations Conference on Sustainable Development as an attempt to map out a series of goals that would tackle the world’s most important challenges, with a deadline set for 2030. They include goals related to ending poverty, providing access to education, protecting and preserving life, fixing inequalities, and tackling climate change.
Did You know?
17 SDGs are comprised of 169 targets?
Source: https://sdgs.un.org/goals
Logo Guidelines: https://www.un.org/sustainabledevelopment/news/communications-material/
What is Environmental Social Governance (ESG)?
ESG is a set of measurable standards for a company’s behavior. It is used to look at how a company safeguards the environment, how it manages relationships with all people involved, and the leadership and accountability in the company. It is often used by socially responsible investors to put their money where their values are.
A study found social and governance performance can have a significant relationship with economic performance, but not environmental performance. Another study found no clear evidence of how ESG conduct leads to financial performance, and the link between them is not straightforward. However, it is gaining more demand from investors and could become one of the major criteria for them.
What is sustainable construction?
Sustainability in construction is a hugely important part of development, as it can help to build a more eco-friendly world for future generations. Sustainable construction requires you to build with renewable and recyclable materials, with consideration about the amount of energy and resources being used and the environment surrounding the construction site.
What counts as a green building?
The World Green Building Council defines a green building as ‘a building that, in its design, construction or operation, reduces or eliminates negative impacts, and can create positive impacts, on our climate and natural environment’. Features that can make a building green include the use of renewable energy, non-toxic materials, and waste-reduction measures.
What does it mean to have a sustainable economy?
The economy is probably not something you normally associate with sustainability, but it’s very important. Having a sustainable economy is about not favoring economic growth at the cost of social, environmental, and cultural factors, and finding a good balance between growth and responsibility. This isn’t just for the benefit of the planet but can also benefit big corporations by reducing wasted effort, time, and money.
Why is corporate sustainability important?
Corporate sustainability is so important because it helps organizations strive for more sustainable practices and think about something other than profit. This is especially essential because just 100 companies are responsible for over 70% of emissions, so more responsibility needs to be taken by corporations than is currently happening.
What are some examples of sustainable building materials?
Sustainable building materials include recycled materials, locally sourced materials, and materials that are renewable or have a low environmental impact such as bamboo, straw bale, and rammed earth.
What are some materials that can be recycled?
Many materials can be recycled, including paper, cardboard, plastics, glass, metals, and electronics.
What is the difference between recycling and upcycling?
Recycling involves breaking down materials to make new products, while upcycling involves repurposing materials to create something new and of higher value.
What is water conservation and why is it important?
Water conservation is the practice of using water efficiently and avoiding unnecessary waste. It is important because fresh water is a finite resource, and many regions of the world are already experiencing water scarcity.
What is greywater and how can it be used?
Greywater is wastewater from household activities such as laundry, dishwashing, and showering that can be treated and reused for non-potable purposes such as landscape irrigation. It can help to reduce water use and wastewater generation.
What are some sustainable water management practices for businesses and industries?
Some sustainable water management practices for businesses and industries include using water-efficient equipment, implementing water recycling and reuse systems, reducing water losses through leaks and evaporation, and monitoring water use to identify opportunities for improvement.
How can we protect and conserve our oceans and other bodies of water?
We can protect and conserve our oceans and other bodies of water by reducing plastic waste and other pollutants, supporting sustainable fishing practices, protecting and restoring wetlands and other habitats, and promoting water conservation and sustainable management practices.
How can communities reduce their environmental impact?
Communities can reduce their environmental impact by promoting sustainable practices such as reducing waste, conserving energy, promoting green transportation, and preserving natural areas.
This can be achieved through initiatives such as recycling programs, green building codes, and the promotion of public transportation and active transportation options.
What is social sustainability, and why is it important?
Social sustainability is the ability of a community to maintain a healthy and equitable society for all its members.
This includes access to basic needs such as food, water, shelter, and healthcare, as well as opportunities for education, employment, and social participation. Social sustainability is important because it promotes social cohesion, improves quality of life, and helps to reduce inequalities.
What is sustainable agriculture?
Sustainable agriculture is a method of farming that focuses on producing food in an environmentally and socially responsible way.
It involves practices that promote soil health, conserve water, minimize the use of synthetic fertilizers and pesticides, and protect biodiversity.
What is regenerative agriculture?
Regenerative agriculture is a farming practice that aims to restore soil health, increase biodiversity, and reduce carbon emissions through techniques such as crop rotation, cover cropping, and reduced tillage.
How can farmers minimize the environmental impact of their operations?
Farmers can minimize the environmental impact of their operations by adopting sustainable farming practices, such as conservation tillage, cover cropping, crop rotation, and integrated pest management.
These practices help to conserve soil and water, reduce erosion, and minimize the use of synthetic fertilizers and pesticides.
What is the role of biodiversity in sustainable agriculture?
Biodiversity plays a crucial role in sustainable agriculture by providing ecosystem services such as pollination, pest control, and nutrient cycling.
Farmers can promote biodiversity on their farms by planting diverse crops, incorporating hedgerows and other habitats for wildlife, and using agroforestry practices.
How can agriculture contribute to mitigating climate change?
Agriculture can contribute to mitigating climate change by reducing greenhouse gas emissions from farming operations and sequestering carbon in soils and vegetation.
This can be achieved through practices such as conservation agriculture, agroforestry, and integrating livestock into cropping systems.
What are the benefits of organic farming?
Organic farming can provide several benefits, including improved soil health, reduced water pollution, and reduced greenhouse gas emissions.
Organic farms also typically use fewer synthetic inputs, which can be beneficial for the environment and human health.
How can farmers ensure the long-term sustainability of their operations?
Farmers can ensure the long-term sustainability of their operations by adopting practices that promote soil health, conserve water, and protect biodiversity.
They can also incorporate renewable energy sources into their operations and work with local communities to promote sustainable land use practices.
What is the role of consumers in promoting sustainable agriculture?
Consumers can play a key role in promoting sustainable agriculture by choosing to purchase food from sustainable sources, such as organic or locally-grown produce.
They can also support policies and initiatives that promote sustainable agriculture, such as incentives for farmers who adopt sustainable practices or regulations that limit the use of synthetic inputs.
What is Zero Waste?
Zero waste is a lifestyle that involves reducing the amount of waste you produce as much as possible. Think of it as a way to be kind to our planet by minimizing our trash footprint.
What are the (key) steps in setting up a sustainability report?
The four-stage process involves:
- Defining performance goals and KPIs
- Measuring performance
- Evaluating performance
- Reporting
What is a carbon credit?
A carbon credit is a tradable unit that represents a certified reduction or removal of one ton of greenhouse gas emissions from the atmosphere. It is a measurable and verifiable unit used to offset emissions produced by an activity or company or otherwise contribute to emissions reduction worldwide.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
How are carbon credits generated?
Carbon credits are generated by certified projects that reduce, avoid, or remove GHG from the atmosphere. There is a wide range of project types that qualify for carbon credit generation, and among them, nature-based projects hold great promise in addressing climate change more effectively.
These projects operate within different biomes, such as forests, grasslands, or wetlands, to protect and/or reforest these vital ecosystems. For example, some reforestation projects (ARR) focus on restoring forest cover in specific biomes, while native forest protection initiatives (REDD+) aim to preserve existing forests.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
Who is responsible for certifying carbon credits? What are the major standards?
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Who is responsible for certifying carbon credits? What are the major standards?
Carbon credits are certified by globally recognized carbon crediting standards (program operators) and verified by third-party entities (auditors), thus ensuring that the carbon credits meet fundamental thresholds in terms of integrity, transparency, and fungibility in markets.
Some of the major entities responsible for certification include the Verified Carbon Standard by Verra, the Gold Standard, and the American Carbon Registry. These organizations assess and verify emission reduction projects, ensuring that the generated carbon credits are real, measurable, and additional.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
What is the importance of carbon credits?
Carbon credits play a vital role in the battle against climate change by directing capital to climate-positive projects addressing the imperative of carbon capture and reduction of greenhouse gas emissions.
The Intergovernmental Panel on Climate Change (IPCC) has underscored the urgency of removing 6 gigatons of CO₂ from the atmosphere annually to effectively mitigate global warming.
Additionally, carbon credits align with the objectives outlined in the Paris Agreement, which seeks to restrict the global average temperature increase to below the critical threshold of 1.5 degrees Celsius.
By utilizing carbon credits, companies actively contribute to the global endeavors aimed at reducing emissions and achieving the targets set forth by the Paris Agreement.
Source: https://carboncreditsconsulting.com/answers-to-common-questions-about-carbon-credits/
What are Carbon Markets?
In a nutshell, carbon markets are trading systems in which carbon credits are sold and bought. Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.
One tradable carbon credit equals one tonne of carbon dioxide, or the equivalent amount of a different greenhouse gas reduced, sequestered, or avoided. When a credit is used to reduce, sequester, or avoid emissions, it becomes an offset and is no longer tradable.
Source:https://climatepromise.undp.org/news-and-stories/what-are-carbon-markets-and-why-are-they-important
What is the Carbon Cycle?
The carbon cycle is the circulation and transformation of carbon back and forth between living things and the environment. Carbon is an element, something that cannot be broken down into a simpler substance. Other examples of elements are oxygen, nitrogen, calcium, iron, and hydrogen. Carbon compounds are present in living things like plants and animals and in nonliving things like rocks and soil. Carbon compounds can exist as solids (such as diamonds or coal), liquids (such as crude oil), or gasses (such as carbon dioxide). Carbon is often referred to as the “building block of life” because living things are based on carbon and carbon compounds.
What are Scope 4 emissions?
Scope 4 emissions, also known as ‘avoided emissions’, represent a relatively new concept in environmental sustainability and carbon accounting. This term was introduced by the World Resources Institute in 2013 and offers a novel perspective in measuring a company’s impact on greenhouse gas (GHG) emissions. Unlike the traditional scopes (Scope 1, 2, and 3), which focus on emissions directly or indirectly associated with a company’s operations and value chain, Scope 4 emissions take into account the reductions in emissions that occur as a result of the use of a product or service. Scope 4 emissions are defined as the reductions in greenhouse gas emissions that occur outside of a product’s life cycle or value chain but as a direct result of using that product/service.
What are the examples of Scope 4 emissions?
Examples of products contributing to Scope 4 emissions include low-temperature detergents, fuel-saving tires, or teleconferencing equipment and services. These products, with their efficiency or functionality, help in reducing overall GHG emissions. For example, teleconferencing services reduce the need for travel, thereby avoiding emissions that would have otherwise occurred.
Why is Scope 4 important?
Scope 4 emissions provide a more comprehensive view of a company’s impact on the environment, highlighting the positive externalities of its products or services. This aspect of carbon accounting is crucial for understanding the full spectrum of a company’s carbon footprint and its contributions towards a net-zero economy. Reporting on Scope 4 emissions, therefore, captures not just the emissions a company is directly or indirectly responsible for, but also the emissions it helps to prevent through its products or services.
Is it mandatory to calculate and report Scope 4 emissions?
Currently, reporting Scope 4 emissions is not mandatory. The GHG Protocol, which sets the standard for emissions reporting, has yet to officially recognize Scope 4. However, voluntary reporting of these emissions can provide a more comprehensive view of a company’s environmental impact and progress in sustainability.
How fast are the world’s oceans rising?
In 2014 global sea levels were 6 cm above the 1993 average, and the levels continue to rise at around 0.3 cm per year.
NASA analyses: “About one-third of sea level rise is caused by expansion of warmer ocean water, one-third is due to ice loss from the massive Greenland and Antarctic ice sheets, and the remaining third results from melting mountain glaciers.”
It is also important to understand that sea levels do not rise at the same speed – this is a common misconception. The height of water levels varies greatly depending on where in the world the sea is located. Although all oceans are connected, they do not warm at the same rate and do not get affected by the same source of melted water.
How much does climate change cost?
A lot. And we’re not talking millions, we’re talking trillions. Aside from the environmental impacts of climate change, there are also huge monetary repercussions. In the U.S. alone, the extreme weather due to climate change, as well as the health consequences of burning fossil fuels, have cost the government 240 billion dollars a year for the last ten years. Put in perspective, 240 billion dollars would be enough to provide free college tuition for 11.2 million students. Plan A strives to bridge the gap between the actual level of investment and the necessary steps to be taken now if we don’t want the check to spiral out of control some more.
What are the greenest countries on Earth?
According to the environmental performance index, Finland, Iceland, Sweden, Denmark, and Slovenia are the top 5 greenest countries on Earth. The index notes that Finland’s spot at the top of the list “stems from its societal commitment to achieve a carbon-neutral society.”
The Index’s researchers also go on to say: “Finland’s goal of consuming 38% of their final energy from renewable sources by 2020 is legally binding, and they already produce nearly two-thirds of their electricity from renewable or nuclear power sources.”
What is Climate Tech?
Climate tech refers to technologies and services that enable decarbonization of the global economy. Climate tech companies develop products and services that leverage these technologies to mitigate and adapt to climate change, by removing existing carbon from the atmosphere, reducing future emissions, or increasing our resilience against the impacts of a changing climate. Since addressing climate change requires transformation across all sectors, climate tech companies span a wide variety of end markets and business models.
Source: https://www.nasdaq.com/solutions/listings/resources/blogs/what-is-climate-tech
How Big is the Climate Tech Market?
The climate tech market has expanded rapidly in recent years. Silicon Valley Bank estimated that VC investment in climate tech startups totaled $56 billion in 2021 across over 1,600 deals. Despite the market downturn in 2022, these numbers decreased only slightly the following year. The popular newsletter Climate Tech VC estimated that climate tech companies raised over $40 billion across 1,000 venture and growth deals in 2022.[1] PwC’s 2022 State of Climate Tech report found that investments in climate technology represented more than 25% of all venture capital deals in 2022.
SVB also estimated that current, global annual financing for the energy transition is $3.5T across both public and private, debt and equity. This would need to increase to $5.6 trillion per year to limit global average temperatures to 1.5 degrees of warming. Breaking this down by type of financing, private equity funding of the energy transition (including venture capital) needs to increase by 21%.
Source: https://www.nasdaq.com/solutions/listings/resources/blogs/what-is-climate-tech
What is the Difference Between Climate Tech and CleanTech?
Cleantech generally refers to all technologies mitigating environmental damage of any kind, while climate technology explicitly focuses on addressing climate change. Clean technology can include technologies addressing air pollution, waste generation, and clean water. That said, a lot of overlap still exists between climate tech and clean tech.
Investors also associate clean tech with the large capital inflows primarily to the solar and wind sectors that occurred in the early 2000s. Venture capital started flowing into renewable energy technologies and electric vehicles which at the time had not yet reached the mainstream. This continued for several years until the 2008 burst of the “Green Bubble” that occurred alongside the financial crisis.
The term climate tech grew in popularity beginning around 2019. While climate tech still includes renewable energy and electric vehicle start-ups, since the core technology has already proven itself, new entrants into these markets now must provide a differentiated value add related to either scaling existing solutions or increasing the capacity and efficiency of existing technologies. Climate tech also includes new climate-specific sectors that did not exist during the cleantech investing era, most notably carbon tech.
Source: https://www.nasdaq.com/solutions/listings/resources/blogs/what-is-climate-tech
