Thursday 11 August 2022
Voluntary emission reductions rundown
Voluntary emission reductions are carbon offset, that are not mandated by law or regulation. Rather they are built from a business’s desire to take an active and voluntary part in climate change mitigation efforts. This may enable a company to be recognised as a pro-active advocate for new technologies and approaches in this area.
Sustainability is becoming increasingly important among consumers, making it essential for businesses to find the most efficient and effective ways of reaching green goals. Cutting emissions under the voluntary emissions scheme will guarantee the credible quality of reductions and ensure steps towards a more sustainable future.
Let’s take a look at how voluntary emissions reductions work.
What are carbon credits?
To meet net zero targets, businesses need to reduce their emissions as much as possible. Emissions can be tracked through measuring and carbon reporting, which will in turn help to achieve the transparency and accountability – qualities that investors and other stakeholders increasingly want. However, it can be costly and time-consuming to install modern technology to help cut emissions. This makes carbon credits all the more appealing.
Buying carbon credits is one way for a business to address those emissions that it is unable to reduce. Carbon credits are certificates representing units of greenhouse gases that have been kept out of the air or removed from it, through the implementation of emission reduction projects. While carbon credits are not a new concept, the voluntary market for carbon credits has grown significantly in recent years. Because voluntary offset credits cannot be used in the standardised compliance markets, they tend to be cheaper and more accessible.
How do businesses benefit from voluntary emission reductions?
Introducing voluntary emission reductions can bring a number of different benefits for businesses. For a start, they enable companies to support decarbonisation beyond their own carbon footprint – in turn accelerating the country’s transition to a lower emission future. They also help finance projects that aid the removal of carbon dioxide from the atmosphere. But although the voluntary carbon credit market is continuing to grow at a rapid pace, it is still considered quite small.
To accelerate the growth trajectory of the voluntary carbon market, and realise its full potential, it will be important to address some significant challenges. These include:
- the need to strengthen impact and quality assurance,
- to align stakeholders on the criteria for credible use of voluntary carbon credits as part of an overall climate strategy,
- build new market infrastructure, and
- reduce regulatory uncertainty.
How can EIC help?
Understanding and managing your energy usage and carbon emissions across your business can seem daunting and sometimes near impossible. But it doesn’t have to be that way.
At EIC, we understand the growing importance of securing a green future. We help businesses to monitor and manage their energy and carbon, always with sustainability in mind. Our in-house team can guide you through energy monitoring, carbon management, green procurement and compliance legislation.
Get in touch today to find out how we can help you to reach your sustainability goals.
