Tackling climate change takes a group effort
"Pericarbon.org: Accelerating climate action by enabling the trade of Voluntary Emission Reductions."
Understanding the Voluntary Carbon Reduction (VER) Markets
Introduction: Voluntary Carbon Reduction (VER) markets enable companies to take proactive steps toward mitigating their carbon footprint. This process involves a series of systematic steps, ensuring transparency and credibility in carbon reduction claims. Here's a simplified guide to how it works:
1) Taking Initiatives for Carbon Reduction:
Company ABC decides to voluntarily modify their operations to curtail their carbon footprint. For instance, they might integrate a cutting-edge technology specifically designed to lower carbon emissions.
2) Verification Application:
After implementing the changes, Company ABC approaches the Pericarbon.org Registry. This step is crucial as it allows their carbon reduction claims to be scrutinized and authenticated by neutral third-party validators. These validators use a set of globally recognized carbon accounting standards to ensure accuracy.
3) Reporting and Validation:
Company ABC is responsible for submitting quantification reports annually to the Pericarbon.org Registry. After these reports undergo validation by third-party professionals, the confirmed emission reductions are serialized. This data is then securely recorded on the Pericarbon.org VER blockchain ledger for transparency and traceability.
4) Purchasing VERs for Carbon Offset:
Meanwhile, another entity, Company XYZ, is looking for ways to counterbalance the carbon emissions stemming from their operations, services, or products. To achieve this, they opt to acquire VERs via the Pericarbon.org Registry.
5) VER Retirement:
Upon the purchase, Pericarbon.org takes a crucial step: it retires the acquired VERs on the blockchain ledger. This retirement process is essential as it ensures each VER is used only once, maintaining the integrity of the system. The ledger will also clearly display which entity (in this case, Company XYZ) made the purchase.
6) Reporting VER Distribution:
Finally, Company XYZ is required to inform the Pericarbon.org Registry about how they allocated the VERs. This could be in relation to specific products, services, or other operational aspects. This step ensures clarity on how the VERs are utilized and enhances accountability in the carbon offset process.
By engaging in the VER market, companies not only showcase their commitment to a greener future but also contribute to a standardized and transparent system of carbon reduction.
WHERE DO WE START?
CARBON FOOTPRINT DEFINITION 1.
Scope 1 - Direct Emissions: This is like the puff of smoke coming out of a car's exhaust. These are the emissions that come straight from sources we control.
2.
Scope 2 - Energy Emissions: The electricity that powers lights and equipment come from a power plant that might burn coal or gas to make electricity and, in the process, releases carbon. Scope 2 counts these emissions.
3.
Scope 3 Upstream: These include the carbon footprint of goods and services that form your supply chain. These are called "upstream" because they include all the steps and carbon footprint that went to the product or service steps leading up to you.
4.
Scope 3 Downstream: Generally associated with waste, and in particular, landfill methane. Carbon emissions linked to after using a product or service are "downstream" emissions.
Think of the jar as your carbon footprint. It includes all of your scopes of carbon. Scope 1 + Scope 2 + Scope 3 (upstream) + Scope 3 (downstream) = your carbon footprint
UNDERSTANDING NET-ZERO •Carbon Net-Zero is like a money ledger. Imagine all the Scopes of carbon you produce is like spending money, and it's written on the left side (debits). To balance it out, you can buy VERs (emission reductions) and write them on the right side (credits). The goal is to make sure both sides are equal, so your ledger adds up to zero!
As organizations commit to Carbon Net-Zero it implies: 1) they calculate their carbon footprint 2) they purchase VER’s to bring their net emissions to zero.
Source: Time.com
Reputational Damage: Allegations of greenwashing can cause lasting reputational damage, which may harm a company's brand value and stock price.
Greenwashing and Carbon Net-Zero Commitments: A Scientific Perspective Understanding Carbon Emissions To comprehend greenwashing, it's essential to first grasp carbon emissions. Every organization has a carbon footprint, which signifies the total amount of carbon dioxide (CO2) and other greenhouse gases emitted directly or indirectly due to its activities. CO2 plays a significant role in the greenhouse effect, trapping heat in the Earth's atmosphere and contributing to global warming. The Concept of Carbon Net-Zero When an organization commits to being "carbon net-zero," they are pledging to balance their carbon emissions with actions that absorb or offset an equivalent amount of CO2. Ideally, the amount of CO2 they release into the atmosphere would be counteracted by activities of others leading to reduced overall carbon emission. Greenwashing in the Context of Carbon Net-Zero Greenwashing occurs when organizations exaggerate or falsely claim environmental achievements or commitments. In the context of carbon net-zero, greenwashing might involve a company publicly pledging to achieve this balance but not implementing definitive action based on scientific measures to genuinely offset their emissions. Why is Genuine Commitment Essential? Scientifically, the Earth's climate is at a tipping point. The more CO2 accumulates in the atmosphere, the more heat is trapped, leading to severe climatic changes. For the planet to stabilize, it's crucial for organizations to genuinely reduce their carbon footprints. Greenwashing not only misleads the public but also slows down the collective global effort needed to address climate change.
How the VER markets work
VER
IRE T E R
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Introduction: Voluntary Carbon Reduction (VER) markets enable companies to take proactive steps toward mitigating their carbon footprint. This process involves a series of systematic steps, ensuring transparency and credibility in carbon reduction claims. Here's a simplified guide to how it works : 1) Taking Initiatives for Carbon Reduction:
Company ABC has decided to voluntarily modify their operations to curtail their carbon footprint. For instance, they might integrate cutting-edge technology specifically designed to lower carbon emissions.
2) Verification Application:
After implementing the changes, Company ABC approaches the Pericarbon.org Registry. This step is crucial as it allows their carbon reduction claims to be scrutinized and authenticated by neutral third-party validators. These validators use a set of globally recognized carbon accounting standards to ensure accuracy.
3) Reporting and Validation:
Company ABC is responsible for submitting quantification reports annually to the Pericarbon.org Registry. After these reports undergo validation by third-party professionals, the confirmed emission reductions are serialized. This data is then securely recorded on the Pericarbon.org VER blockchain ledger for transparency and traceability.
4) Purchasing VERs for Carbon Offset:
Meanwhile, another entity, Company XYZ, is looking for ways to counterbalance the carbon emissions stemming from their operations, services, or products. To achieve this, they opt to acquire VERs via the Pericarbon.org Registry.
5) VER Retirement:
Upon the purchase, Pericarbon.org takes a crucial step: it retires the acquired VERs on the blockchain ledger. This retirement process is essential as it ensures each VER is used only once, maintaining the integrity of the system. The ledger will also clearly display which entity (in this case, Company XYZ) made the purchase.
6) Reporting VER Distribution:
Finally, Company XYZ is required to inform the Pericarbon.org Registry about how they allocated the VERs. This could be in relation to specific products, services, or other operational aspects. This step ensures clarity on how the VERs are utilized and enhances accountability in the carbon offset process.
By engaging in the VER market, companies not only showcase their commitment to a greener future but also contribute to a standardized and transparent system of carbon reduction.
3rd party validated Voluntary Emission Reductions are listed on the Pericarbon.org VER registry.
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Validation and Verification Process
NET-ZERO ANALYTICS Net-Zero Analytics: Pioneers in Carbon Reduction Validation •Company Identity: • A distinguished third-party validation company dedicated to all scopes of carbon reduction. • Adherence to the most rigorous global standards, including comprehensive ISO protocols. •Specialization: • Expertise in facilitating innovators to introduce their carbonreduction technologies to the market. • Focus on validating technologies that have a significant impact on reducing carbon footprints. •Scope Expertise: • Scope 1: Validation of direct emissions reduction from companyowned and controlled resources. • Scope 2: Assessment of indirect emissions savings through renewable energy and efficiency improvements. • Scope 3: Comprehensive analysis of emissions across the entire value chain, including product life-cycle. •Global Standards Compliance: • Strict conformity with international standards such as ISO for sustainability and greenhouse gas emissions. • Continuous alignment with global best practices and evolving environmental regulations. •Client Services: • Custom validation protocols for new carbon-lowering technologies. • Guidance through the complexity of market entry for innovative carbon reduction solutions. • Transparent and credible reporting for stakeholders, including regulatory agencies and investors. •Certification and Verification: • Issuance of certifications for technologies and processes that meet Net-Zero criteria. • Periodic reassessment to ensure ongoing compliance and effectiveness of carbon reduction measures. Net-Zero Analytics plays a crucial role in bridging the gap between innovative carbon reduction technologies and their successful market implementation, ensuring that environmental impact claims are not only verifiable and compliant with international standards but also effectively contributing to global Net-Zero ambitions.
Leveraging VER’s to Grow Sales use VER’s to make your product or service carbon net-zero
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How is the price of VER’s determined?
Excess supply price goes down Excess demand price goes up
EcoGadget (fictional product)
Cradle-to-Grave "EcoGadget" (fictional) 1.Raw Material Extraction:
1. Extraction of metals, plastics, and rare earth elements. 2. Transportation of these materials to the manufacturing facility. 3. Carbon Footprint: Assuming moderate efficiency in mining and transportation, let's estimate 5 kg CO2-equivalent.
2.Manufacturing:
1. Energy used in the manufacturing process, including assembly and quality control. 2. Carbon Footprint: Electronics manufacturing can be energyintensive. We'll estimate 20 kg CO2-equivalent for the production of each EcoGadget.
3.Packaging:
1. Production of packaging materials, which may include paper, cardboard, and plastic. 2. Carbon Footprint: If using recycled materials and efficient processes, let's estimate 1 kg CO2-equivalent for packaging .
4.Transportation and Distribution:
1. Shipping from the manufacturing site to warehouses and retailers, including international freight if applicable. 2. Carbon Footprint: For a global distribution, the carbon footprint can be significant. We'll estimate 10 kg CO2equivalent.
5.Usage:
1. Energy consumed by the EcoGadget during its lifetime. 2. Carbon Footprint: Assuming an average use over 3 years with electricity having a carbon intensity of about 0.4 kg CO2equivalent per kWh and usage of 100 kWh/year, that would be 120 kg CO2-equivalent.
6.End-of-Life Disposal: 7. Energy used and emissions produced during recycling or landfilling. 8. Carbon Footprint: If 50% is recycled and 50% goes to a EcoGadget (kg)estimate 158 2 kg CO2-equivalent for disposal. landfill,CO2 let's Total VERCarbon / kg - $70 Footprint: $11.06 158 kg CO2-equivalent (fictional). Price ranges required to offer VER / kg - $60 $9.48 the EcoGadget as a carbon VER / kg - $50 $7.90 net-zero product. VER / kg - $40 $6.32 VER / kg - $30 $4.74 VER / kg - $20 $3.16
Estimating the cradle-to-grave carbon footprint for a sit-down pizza dinner for four at a restaurant, with each patron drinking one beer. Ingredient Sourcing:
1. Farming practices for wheat (for dough), dairy (for cheese), vegetables (toppings), and hops and barley (for beer). 2. Transportation of these ingredients to the processing facilities and then to the restaurant. 3. Carbon Footprint Estimate: The footprint of farming and transportation can be significant. Let's assume approximately 2 kg CO2-equivalent per meal, so 8 kg for four patrons.
1.Food Processing:
1. Energy used in milling flour, producing cheese, processing toppings, and brewing beer. 2. Carbon Footprint Estimate: Industrial processing is energyintensive. We'll estimate 1 kg CO2-equivalent per meal, totaling 4 kg for the group.
2.Restaurant Operations:
1. Cooking the pizza (wood-fired, gas, or electric ovens have different footprints). 2. Refrigeration, lighting, heating/cooling the dining area. 3. Carbon Footprint Estimate: Cooking and operations could amount to 1 kg CO2-equivalent per meal, adding up to 4 kg for the dinner.
3.Consumption:
1. The energy used for dishwashing, waste management, etc. 2. Carbon Footprint Estimate: Relatively low, let's estimate 0.5 kg CO2-equivalent per meal, totaling 2 kg for the group.
4.Waste Management:
1. Disposal of organic waste or leftovers, packaging from ingredients, napkins, etc. 2. Carbon Footprint Estimate: If waste is not composted or let's estimate 0.5 kg CO2-equivalent per Pizza Mealrecycled CO2 (kg)effectively, 20 meal, adding another 2 kg for the dinner.
VER Carbon / kg - $70 Footprint $1.40 Estimate: 20 kg CO2-equivalent. Total Price ranges required to offer VER / kg - $60 $1.20 the Pizza dinner as a carbon VER / kg - $50 $1.00 net-zero product. VER / kg - $40 $0.80 VER / kg - $30 $0.60 VER / kg - $20 $0.40
Cradle-to-grave carbon footprint for a 20 lb. case of toilet paper sourced from China and consumed in Calgary. 1.Raw Material Harvesting:
1. Tree harvesting for pulp production and processing. 2. Carbon Footprint Estimate: The impact of tree harvesting can vary, but sustainable practices can reduce it. Assuming standard practices, we might estimate around 1 kg CO2-equivalent per case.
2.Manufacturing:
1. Energy used in turning the pulp into toilet paper, packaging, etc. 2. Carbon Footprint Estimate: Factories often use significant energy. We'll estimate around 3 kg CO2-equivalent per case.
3.Transportation to Port:
1. Transport from the factory to a port in China. 2. Carbon Footprint Estimate: This is relatively short-distance, so let's say 0.5 kg CO2-equivalent per case.
4.Ocean Freight:
1. Shipping from China to a Canadian port (likely Vancouver). 2. Carbon Footprint Estimate: Ocean freight is relatively efficient in terms of CO2 per ton-mile. We'll estimate about 1 kg CO2equivalent per case for this long journey.
5.Rail Transport:
1. Rail transport from the Canadian port to Calgary. 2. Carbon Footprint Estimate: Rail is also efficient, perhaps around 0.5 kg CO2-equivalent per case for this inland journey.
6.Local Distribution:
1. Delivery from the rail depot to stores in Calgary. 2. Carbon Footprint Estimate: Short-distance trucking is less efficient, so let's estimate 0.5 kg CO2-equivalent per case.
7.End-of-Life: 1. Disposal or recycling of used toilet paper and packaging. 2. Carbon Footprint Estimate: Mostly biodegradable, but let's account for methane release and say 0.1 kg CO2-equivalent per case. Toilet Paperl CO2 (kg)
6.6
VER / kg - $50 VER / kg - $40 VER / kg - $30 VER / kg - $20
$0.33 $0.26 $0.20 $0.13
Price ranges to offer Total Carbon = 6.6required kg CO2-equivalent VER / kg - $70 Footprint $0.46 Estimate: per case. the case toilet paper from VER / kg - $60 $0.40 China as a carbon net-zero product.
Estimating the cradle-to-grave carbon footprint for a can of beans sold in a supermarket: 1.Agricultural Production:
1. Farming practices, including tillage, planting, fertilizing, and harvesting. 2. Carbon Footprint Estimate: This can be significant due to the use of fertilizers and farm machinery. Let's estimate around 150 grams CO2-equivalent per can.
2.Processing and Canning:
1. Cooking the beans, sealing them in cans, and sterilizing. 2. Carbon Footprint Estimate: Factories use a substantial amount of energy. We'll estimate about 200 grams CO2-equivalent per can.
3.Transportation to Distribution Center:
1. Transport from the processing plant to a regional distribution center. 2. Carbon Footprint Estimate: This is relatively short-distance, so let's say 20 grams CO2-equivalent per can.
4.Transportation to Retail Store:
1. Shipping from the distribution center to the supermarket. 2. Carbon Footprint Estimate: Another relatively short journey, possibly another 20 grams CO2-equivalent per can.
5.Retail:
1. Energy use in the supermarket, including lighting, heating, cooling, and refrigeration. 2. Carbon Footprint Estimate: Spread over many products, the footprint per can is small. Let's estimate 10 grams CO2-equivalent per can.
Total Carbon Footprint Estimate: = 400 grams CO2Can Beans CO2 0.4 equivalent per (kg) can.
VER / kg - $70 VER / kg - $60 VER / kg - $50 VER / kg - $40 VER / kg - $30 VER / kg - $20
$0.028 $0.024 $0.020 $0.016 $0.012 $0.008
Price ranges required to offer can of beans as carbon netzero product in a supermarket.
Carbon Net-Zero Gasoline
1.Extraction (Well): The process of drilling and extracting crude oil from the ground. 2.Production: The transportation of crude oil to a refinery and the refining process to turn it into usable fuels like gasoline or diesel. 3.Distribution: The transportation of the refined fuel to distribution points such as gas stations, which can include tanker trucks, trains, or pipelines. 4.End-Use (Wheel): The final consumption of the fuel in a vehicle's engine, where it is combusted to produce energy that of vehicle, the last resulting comprehensive data, the average well-topowersAs the in emissions. wheel emissions for a gallon of gasoline could be in the range of 10-12 kg of CO2-equivalent per gallon, considering both upstream and downstream emissions. This number can be higher for oil sands-derived gasoline, potentially by an additional 20-30%.
kg/CO2 VER / kg - $70 VER / kg - $60 VER / kg - $50 VER / kg - $40 VER / kg - $30 VER / kg - $20
US Gallon 12 $0.84 $0.72 $0.60 $0.48 $0.36 $0.24
Liter 3.17 $0.22 $0.19 $0.16 $0.13 $0.09 $0.06
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