29 Jul Green Policy – ​​Expert gives tips on how to invest in the Carbon market

The impacts caused by high concentrations of carbon emissions (CO2) on nature require attention, since practically everything we do emits carbon. There is a lot of talk about companies with green policies; socially responsible and sustainable investments are not just a fad; the topic has been gaining more and more ground and is becoming a trend.

It is essential to have a sustainable vision by opting for alternatives that reduce the impacts caused to the planet. The fact is that brands that contribute to the environment have been more sought after and companies that invest in green policies have been more valued. The pressure for less impact on the environment has led businesspeople to rethink their practices.

Aiming to reduce CO2 emissions into the atmosphere, methodologies for measuring carbon sequestration have been developed, giving rise to the concept of credit. Basically, when a ton of CO2 is no longer emitted into the atmosphere, a carbon credit is generated and can be used by a company, for example, to offset its carbon emissions through what is known as the regulated or voluntary market.

It is the role of every conscious citizen and company to assess the amount of CO2 gases emitted and seek a way to neutralize it in the environment. This effort can come in the form of carbon offsetting, neutralization or reduction.

Currently, companies worldwide invest or are thinking about investing in the neutralization of greenhouse gas emissions. Carbon offsetting is a system that promotes exchange between those who generate carbon credits for reducing emissions and those who need to offset their residual emissions. Companies that understand the importance of carbon offsetting stand out in the current market. However, not everyone has the knowledge of how to invest or buy carbon credits with the aim of reducing or neutralizing greenhouse gas emissions.

Some people think that carbon offsetting practices are directly linked to some sectors of the economy, which is not true. Have you ever wondered how your company has behaved in issues such as: the use of renewable energy sources, waste and water resource management programs, control of greenhouse gas emissions, deforestation and actions related to climate change? Companies, whether large, medium or small, can invest in zero carbon, neutralizing their emissions and offsetting their impacts.

Access to information is still not very clear, ESG Reports, also known as sustainability reports, and measurement methodologies are still far from being standardized. There is a growing movement of organizations that hire specialized companies to collect data such as: energy, water, transportation consumption, among others, and from there quantify the direct and indirect emissions of greenhouse gases from a given production process or company, with the aim of preparing a GHG inventory and transforming the impacts into decarbonization. This is the case of Canopée Gestão Ambiental e Florestal, which, in addition to carrying out the work of preparing the GHG inventory, enables compensation through the sale of carbon credits from two farms in Sena Madureira, Acre. This is the result of the application of an audit and certification protocol customized especially for Canopée by Bureau Veritas.

According to Forestry Engineer Rui Pedro Ribeiro, a member of Canopée Ambiental e Florestal, although this market practice is relatively new, there are many companies offering carbon credits. It is necessary to be cautious and look for companies that have internationally recognized certifications to ensure that the credits generated are truly real and efficient.

Rui gives 5 tips for those who want to invest in carbon credits to reduce their environmental impacts:

1) Ensure that the purchased asset is not linked to any liability, namely labor, tax, legal and land liabilities;

2) Ensure that the purchased asset socially enhances the areas of influence of the compensation projects;

3) Ensure that the purchased asset is used only to neutralize the carbon emissions that cannot be avoided, i.e., it is important that, together with the offset, there is an incentive to implement initiatives to reduce the carbon footprint within the company (e.g.: Management takes measures to increase energy efficiency, reducing dependence on non-renewable energy sources used for production and processing.)

4) Ensure that the offset project is audited by a credible third party with local knowledge, also ensuring that, in addition to quantification, it also certifies that the project meets the conditions of items 1 and 2.

5) Ensure that the same credits are not used again to offset, i.e., that there is no double application of the assets in reducing the carbon footprint.