24 Mar How do carbon credits work for companies?

When we say the amount of “one carbon credit”, you might automatically imagine that this is equivalent to one ton of carbon dioxide – or other greenhouse gases – that was not emitted into the atmosphere. That’s a lot!

Typically, companies emit not just one ton, but much more than that, which has generated a major environmental impact and serious climate change.

In an attempt to improve this scenario and contribute to the environment, Canopée develops sustainable socio-environmental projects that generate carbon credits from the conservation of native forest areas in the Amazon. Companies, individuals and organizations can purchase these carbon credits to offset their emissions.

But how does it work in practice?

By purchasing carbon credits, the person or organization “finances” a sustainable project that reduces greenhouse gas emissions into the atmosphere. Each program has some main guidelines, such as preserving forests, regenerating deforested areas, generating renewable energy, and others that manage waste, for example.

But much more than just purchasing carbon credits, implementing a project of this magnitude involves bringing changes in behavior and processes into the company. It is necessary to change the mindset of the company and the team, and bring the ESG concept into the company's culture.

An example of this would be the replacement of fuels used in factories, where the use of “fossil fuels” – such as diesel – could be changed to biomass of renewable origin (agricultural waste, eucalyptus pellets, etc.).

In order to be considered “zero carbon” or “carbon neutral,” the company must first undergo a diagnosis, in which all sources of emissions for which the company is directly responsible are identified so that the impact of its operations on the environment can be quantified. After this mapping, ways to mitigate and/or offset this impact are discussed.

In the case of companies that have very high levels of emissions and few ways to make a reduction in the short term feasible, they can acquire carbon credits to offset their emissions while they make this transition in their modus operandi. In this way, they, even indirectly, help maintain a sustainable project and balance the level of greenhouse gas emissions in the atmosphere, contributing to sustainable development.

According to Ecosystem Marketplace, the voluntary carbon credit market quadrupled in 2021, reaching 2 billion dollars worldwide. McKinsey expects it to reach $50 billion by 2030. Companies that want to continue existing and prospering until then must enter the race to remodel their way of producing, in addition to paying due attention to the new possibilities of this market, since it has given several signs of its importance for the maintenance of life on the planet.

Interested? Request a mapping of your greenhouse gas emissions: canopee@canopee.com.br