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There are various types of carbon credits, each with its own impact and implications. Here are the main types: 1. Compliance Credits These are used in regulated carbon markets, where governments set caps on emissions and companies must comply with these limits. • Impact: These credits help ensure that companies meet legal requirements for emissions reductions. They typically have a more direct impact on reducing overall emissions since they are part of a regulated system. • Examples: European Union Emission Trading Scheme (EU ETS), California Cap-and-Trade Program. 2. Voluntary Credits These are used in voluntary carbon markets (VCM), where companies or individuals choose to offset their emissions voluntarily. • Impact: They provide flexibility and encourage innovation in emission reduction projects. However, the impact can vary widely depending on the quality and verification of the projects. • Examples: Verified Carbon Standard (VCS), Gold Standard, Climate Action Reserve. 3. Reduction Credits Generated by projects that actively reduce emissions, such as renewable energy projects, energy efficiency improvements, and methane capture. • Impact: These credits directly reduce the amount of GHGs released into the atmosphere. They often support the transition to cleaner technologies and can have significant co-benefits, such as job creation and technological innovation. 4. Removal Credits Generated by projects that remove CO2 from the atmosphere, such as reforestation, afforestation, and carbon capture and storage (CCS). • Impact: These credits help to sequester carbon, thereby reducing the overall concentration of GHGs in the atmosphere. They are crucial for achieving net-zero emissions targets. 5. Avoidance Credits Generated by projects that avoid emissions that would have otherwise occurred, such as preventing deforestation or protecting wetlands. • Impact: These credits help to preserve existing carbon sinks and prevent additional emissions. They often come with biodiversity and ecosystem protection benefits. 6. Social and Community Credits Generated by projects that not only reduce emissions but also provide social and community benefits, such as improved health, education, and livelihoods. • Impact: These credits contribute to sustainable development goals (SDGs) and can have a broader positive impact on local communities beyond just emission reductions. Market Size and Projections The Voluntary Carbon Market (VCM) has been growing rapidly. According to various market analyses and forecasts: • Current Market Size: As of 2021, the VCM was valued at around $1 billion. • Future Projections: By 2030, the VCM is expected to grow substantially. Estimates suggest it could be worth anywhere from $5 billion to $50 billion, depending on regulatory developments, corporate commitments to net-zero targets, and the overall demand for carbon offsets.

There are various types of carbon credits, each with its own impact and implications. Here are the main types: 1. Compliance Credits These are used in regulated carbon markets, where governments set caps on emissions and companies must comply with these limits. • Impact: These credits help ensure that companies meet legal requirements for emissions reductions. They typically have a more direct impact on reducing overall emissions since they are part of a regulated system. • Examples: European Union Emission Trading Scheme (EU ETS), California Cap-and-Trade Program. 2. Voluntary Credits These are used in voluntary carbon markets (VCM), where companies or individuals choose to offset their emissions voluntarily. • Impact: They provide flexibility and encourage innovation in emission reduction projects. However, the impact can vary widely depending on the quality and verification of the projects. • Examples: Verified Carbon Standard (VCS), Gold Standard, Climate Action Reserve. 3. Reduction Credits Generated by projects that actively reduce emissions, such as renewable energy projects, energy efficiency improvements, and methane capture. • Impact: These credits directly reduce the amount of GHGs released into the atmosphere. They often support the transition to cleaner technologies and can have significant co-benefits, such as job creation and technological innovation. 4. Removal Credits Generated by projects that remove CO2 from the atmosphere, such as reforestation, afforestation, and carbon capture and storage (CCS). • Impact: These credits help to sequester carbon, thereby reducing the overall concentration of GHGs in the atmosphere. They are crucial for achieving net-zero emissions targets. 5. Avoidance Credits Generated by projects that avoid emissions that would have otherwise occurred, such as preventing deforestation or protecting wetlands. • Impact: These credits help to preserve existing carbon sinks and prevent additional emissions. They often come with biodiversity and ecosystem protection benefits. 6. Social and Community Credits Generated by projects that not only reduce emissions but also provide social and community benefits, such as improved health, education, and livelihoods. • Impact: These credits contribute to sustainable development goals (SDGs) and can have a broader positive impact on local communities beyond just emission reductions. Market Size and Projections The Voluntary Carbon Market (VCM) has been growing rapidly. According to various market analyses and forecasts: • Current Market Size: As of 2021, the VCM was valued at around $1 billion. • Future Projections: By 2030, the VCM is expected to grow substantially. Estimates suggest it could be worth anywhere from $5 billion to $50 billion, depending on regulatory developments, corporate commitments to net-zero targets, and the overall demand for carbon offsets.

Recent Developments Toward a Net Zero Future 1. Government Policy and Commitments Governments worldwide have made significant strides toward implementing policies aimed at reducing carbon emissions. The U.S. rejoined the Paris Agreement, committing to cutting greenhouse gas emissions by at least 50% by 2030. The European Union introduced its ambitious Green Deal, targeting carbon neutrality by 2050, with countries like Germany and the UK leading the way with stricter national targets. In addition, COP26 in Glasgow reinforced global commitments, with over 130 countries pledging to reach net-zero emissions, and several initiatives launched to curb methane emissions and phase out coal. 2. Corporate Net-Zero Pledges Corporations have also stepped up their sustainability efforts, with a growing number of companies setting their own net-zero targets. Major global brands like Microsoft, Amazon, and Unilever have committed to achieving net-zero emissions, with many focusing on carbon neutrality by 2040 or earlier. These corporate initiatives are crucial, as industries like energy, manufacturing, and transport account for a significant share of global emissions. 3. Renewable Energy Expansion A key driver of the net-zero transition is the rapid expansion of renewable energy sources. Solar and wind power have become cost-competitive with fossil fuels in many parts of the world, leading to record investments in clean energy. Technological advancements in energy storage, such as large-scale battery systems, are also addressing one of the biggest challenges—intermittency of renewable power. The global shift toward electrification is further supported by countries like China, the U.S., and the EU, all making significant investments in electric vehicle (EV) infrastructure and incentives for widespread adoption. 4. Carbon Capture and Storage (CCS) Carbon capture and storage (CCS) technologies are gaining momentum as critical tools for achieving net-zero targets. By capturing CO2 emissions from industrial processes and power plants and storing them underground, CCS can significantly reduce emissions from sectors that are hard to decarbonize. Several large-scale CCS projects are underway in North America and Europe, and recent advancements in direct air capture (DAC) technology offer promising solutions for removing CO2 directly from the atmosphere. 5. Financial Innovations The financial sector is playing a crucial role in driving the net-zero transition. Green bonds and sustainability-linked loans have grown rapidly, providing capital for companies and projects that are reducing emissions. Additionally, central banks and financial regulators are increasingly focusing on climate-related risks, with frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD) becoming more widely adopted. This shift is pushing both public and private entities to account for climate risk in their strategies and investments.

Broadstone is delighted to announce that its near-term carbon emissions reduction targets have been approved by the Science Based Targets initiative and it joins the global movement for ambitious corporate decarbonisation in recognition of the urgency of climate action🌳 The approval sees Broadstone make the following near-term, science-based emissions reduction targets: • Reduce scope 1 GHG emissions 50.4% by FY2032 from a FY2023 base year; • Increase active annual sourcing of renewable electricity from 63% at FY2023 base year to 100% by FY2030; • Reduce scope 3 GHG emissions from fuel and energy-related activities, business travel and employee commuting 58.1% per full time equivalent employee FY2032 from a FY2023 base year. Read more about this landmark moment in our sustainability journey in Corporate Adviser in the comments below including the thoughts of Broadstone's Chief Executive Officer Tony Gusmao and Sustainability Lead Matthew Downey 👇

Building ESG: Decoding Scope 1 and Scope 2 Emissions: A Step-by-Step Guide _______________________________________ Understanding and quantifying your organization's carbon footprint is crucial in today's climate-conscious world. Scope 1 and Scope 2 emissions are two primary categories that businesses often focus on. Let's break down how to calculate them. Scope 1 Emissions: Direct Emissions Scope 1 emissions are those emitted directly from sources owned or controlled by an organization. This typically includes emissions from: * On-site fuel combustion: Burning fossil fuels like natural gas, coal, or oil in boilers, furnaces, or generators. * Company-owned vehicles: Emissions from cars, trucks, and other vehicles used for business operations. * Fugitive emissions: Accidental leaks of greenhouse gases from industrial processes. Calculating Scope 1 Emissions: 1. Identify sources: Determine all sources of direct emissions within your organization. 2. Gather data: Collect data on the type and quantity of fuels used, vehicle mileage, and any fugitive emissions. 3. Use emission factors: Multiply the quantity of each fuel or emission source by its corresponding emission factor,which represents the amount of greenhouse gas emitted per unit of fuel or activity. Scope 2 Emissions: Indirect Emissions Scope 2 emissions are indirect emissions from purchased electricity, heat, or steam. These emissions occur when energy is generated and supplied to your organization. Calculating Scope 2 Emissions: 1. Determine energy consumption: Measure the amount of electricity, heat, or steam purchased by your organization. 2. Use emission factors: Multiply the energy consumption by the emission factor of the energy source. This factor represents the amount of greenhouse gas emitted per unit of energy. While calculating Scope 1 and Scope 2 emissions is a crucial step, it's important to remember that they only represent a portion of your overall environmental impact. Scope 3 emissions, which are indirect emissions from sources outside your direct control, can also significantly contribute to your carbon footprint. Please feel free to add your views on “how can organizations effectively reduce their Scope 1 and Scope 2 emissions while also considering the broader implications of their supply chain and other business activities?” (Disclaimer: Views are personal, should not be related to organisations view) In case you want to share this article please feel free ro share #buildingEsg #circulareconomy #greenbonds #climatechange #climateaction #enviornment #sustainability #esgrisk #climaterisk #ecofriendly #climaterisks #india #emissions #esgratings #esg #cop29 #greenertogether

🌏🌱 If you're looking to make sense of the upcoming Australian Sustainability Reporting Standards, look no further than this online course! It's packed with helpful information to help companies of all sizes prepare, plan, and take action to mitigate risks and seize opportunities. Thank you to the 100% Renewables team for making this valuable resource freely available. Check it out here: https://lnkd.in/guh4qywG 🙌 #sustainability #energyefficiency #renewableenergy #riskmanagement #opportunity #AustralianStandards

Unpacking the ESG Events: Highlights from April 15th to April 21st From EU Mandate on energy efficient buildings by 2050 to JP Morgan’s commitment to invest USD 2.5 Trillion for sustainable development financing by 2030, read most important ESG related happenings around the globe: 1. At Our ocean conference in Greece, EU announced that it will pledge USD 3.5 billion to protect oceans. The areas focused includes – Sustainable fisheries, Marine protection, ocean observation, marine pollution, and research related to ocean. This is the biggest amount announced by EU since the start of Our ocean conference in 2014. This is an initiative started by the U.S. to bring world’s attention to threats facing the ocean. Since start of this conference in 2014, it has resulted in 2,160 commitments valued at USD 130 billion. 2. EU mandates that all buildings must be energy efficient by 2050 and all new buildings should be energy efficient by 2030. Some of the buildings exempted from the rule includes historic buildings, places of worship and buildings owned by armed forces. In EU, buildings currently account for more than a third of GHG emissions. 3. JP Morgan Chase Co in its latest ESG Report 2023 announced investing USD 2.5 trillion towards Sustainable Development Financing. The report says and I quote – ‘Our goal is to finance and facilitate more than $2.5 trillion over 10years — from 2021 through the end of 2030 — to help advance long-term climate solutions and contribute to sustainable development’. Three areas targeted by them includes – Green (finance), development finance, and community development. 4. Phillips 66, an American multinational energy company that processes, transports, stores, and markets natural gas and petroleum products recently converted their San Francisco plant fully renewable. The plant, once manufactured products like gasoline and jet fuel, is now producing 27,000 barrels a day of renewable diesel. 5. Boeing Company, the American multinational company that manufactures and sells aircrafts recently purchased 9.4 million gallon of blended sustainable aviation fuel (SAF) to support its 2024 U.S. commercial operations, reducing its carbon emissions and working to help grow the supply of the fuel globally. This is the company’s largest annual SAF purchase, more than 60% higher than its buy in 2023. The blended fuel purchase consists of 30% SAF (fats, oil and grease) and 70% conventional jet fuel. Alternatively, you can also read this and many more ESG article on my website - https://lnkd.in/dficPt6v

The UK's legally binding net zero target by 2050 requires businesses of all sizes to build trust in this climate transition by adopting smarter and more sustainable energy usage. Read our new comprehensive guide to find out more about Scopes 1, 2, and 3 and see how we help businesses like yours reach their sustainability goals with granular monitoring and carbon reporting. Read our new Net Zero guide for businesses: ⬇️ #NetZero #Innovation #Technology #Sustainability #Energy #Solar

Collecting #CarbonCredits for your #NetZeroTransition? SBTI is advising an adjustment. Carbon Credits allow organisations to pay to offset their emissions rather than reduce them through changing practises and processes. ESG Today writes on an #SBTI report from earlier this week that has indicated new standards being set by the organisation for #NetZero will not allow use of corporate carbon credits for companies, finding them to be “ineffective” at combating #ClimateChange. Founded in 2015, the organisation launched it's 2021 initiative to help take stock of and support businesses #Decarbonisation efforts with science based targets to work towards. In April 2024 they announced plans to permit more prominent use of Carbon Credits and Energy Attribute Certificates (EACs) with the decision causing concern for some experts and team members. ESGToday notes “In a synthesis report released as part of the new research papers, SBTi highlighted studies that suggested that “various types of carbon credits are ineffective in delivering their intended mitigation outcomes.” Addressing the theme that carbon credits could help increase climate mitigation finance, the SBTi highlighted findings pointing to “clear risks to corporate use of carbon credits for the purpose of offsetting”” Post report Chief Technical Officer for SBTI, @Alberto Carrillo Pineda, said: “The outputs released today are a critical step in understanding how the SBTi can develop a more sophisticated approach to scope 3 to help more businesses set targets. The SBTi believes that direct decarbonization must remain the priority for corporate climate action” It's a sizeable shake-up from previous strategies that promises to prompt business to take another look at direct ways to reduce #Emissions, particularly #Scope3Emissions which often account for over 50% of any business #CarbonFootprint. What does it mean for your organisations #NetZeroJourney? Are you set and steady for direct reductions or will you need a new way to navigate? Whatever the case @GreenBridge Associates we've got your back and your best foot forward with catered consultations, climate expertise and cutting edge #CarbonAccounting technology that help you understand your businesses emissions and cut them consisely! Why not say hello? Lets us know your thoughts below and catch the full article here: https://lnkd.in/gfK6d4d5 #CarbonOffsets #ClimateAction #ClimateResponsibility #SupplyChains #SustainableSupplyChains #Renewables #ESG #Business Scottish Business Network

In today’s push for sustainability, carbon credits have become a valuable asset for businesses aiming to reduce their environmental impact. This guide unpacks how organizations can create, validate, and sell carbon credits, transforming emissions into economic opportunities. Learn about the types of projects that qualify for carbon credits, the process of certification, and strategies for accessing the carbon credit market. Whether you're a facilities manager or sustainability leader, this blog will equip you with the knowledge to drive both profitability and positive climate action. https://lnkd.in/gxAWAtND #CarbonCredits #Sustainability #NetZero #CarbonOffset #GreenEnergy #RenewableEnergy #ClimateAction #EcoFriendly #CarbonFootprint #EnvironmentalImpact #SustainableFuture #CarbonTrading #GreenBusiness #ClimateChangeSolutions #CleanEnergy