The annual Global Carbon Budget reported a 1.1% increase in fossil fuels, carbon dioxide (CO2) emissions, reaching 36.8 billion tonnes in 2023
As the UN Climate Summit, COP28, draws to a close, the urgency of addressing the climate crisis is more apparent than ever.
In 2015 world leaders made a promise to reach the 17 sustainable development goals by 2030. We are halfway there and only 15% of SDG’s are on track. So what’s next?
The European Union enters the transitional phase of its climate action strategy (CBAM), while it faces pressure to tackle carbon-emitting industries.
Slowing down global warming hinges on stopping deforestation while embracing natural climate solutions holds the potential to generate fresh avenues of income as global carbon markets develop.
In order to tackle the climate crisis, it’s important to determine priorities. These are the world’s most polluting industries – those it is crucial to decarbonize if we are to meet our climate goals.
Spain’s 2030 Observatory of the Consejo Superior de los Colegios de Arquitectos de España (CSCAE), a business association for architects and contractors, and ClimateTrade, have developed a carbon footprint calculator for companies in the construction sector. This is the first step in helping the construction industry achieve carbon neutrality. The application is the result of a partnership agreement signed between the CSCAE and ClimateTrade to jointly develop digital initiatives to fight climate change and achieve the UN’s Sustainable Development Goals (SDGs) for the 2030 Agenda. The calculator is free to use and already available for the almost 200 members of the CSCAE’s 2030 Observatory, allowing them to calculate carbon footprint offset it through environmental projects in Spain and around the world. Francisco Benedito, CEO and Co-Founder of ClimateTrade, comments: “This partnership is set to allow direct contribution to the SDGs via dozens of projects around the world which, through our marketplace, will provide full transparency on how funds are allocated. At the same time, it is important to offer SMEs and independent contractors this free carbon footprint calculator to help them realize their own environmental impact and quantify their footprint. Through simple annual company data, the calculator provides a summary of CO2 emissions, which can then be offset on the platform, making carbon neutrality easier.” Ángela Baldellou, Director of the 2030 Observatory 2030 of CSCAE, adds: “With this new initiative, we can support our members and partners in their journey towards a more sustainable business model. We are delighted to have the participation of ClimateTrade, which has made the process more digital and more simple, providing companies with the environmental projects that will allow them to move forward with their social responsibility strategy towards a fairer, more sustainable world.” The calculator is very easy to use: based on the standards of the Greenhouse Gas Protocol, the tool prompts the user to enter energy consumption and transportation data, and offers a summary and analysis of CO2 equivalent emissions across a full year. Once calculated, emissions can be offset on the platform, where the user can select the most appropriate mitigation projects and get access to their transaction history in their private account. In Spain, buildings consume about 30% of the country’s total energy, and are responsible for 36% of national GHG emissions. The International Energy Agency (IEA) estimates that direct CO2 emissions from buildings need to be reduced by half, and indirect emissions from the construction sector cut by 60% by 2030 to meet 2050 net zero targets. According to WorldGBC, the construction and demolition phases, as well as the material supply chain, represent between 10 and 20% of a building’s lifecycle carbon footprint. Making a lifecycle assessment of carbon emissions offers new perspectives for their decarbonisation. However, public policies that take these processes into account are also necessary to completely decarbonise buildings in the coming years. To find out more about ClimateTrade’s sector-specific carbon footprint calculators, read our case studies or contact us.
Banco Sabadell has teamed up with ClimateTrade to offset the CO2 emissions associated with its operations in 2021, by investing in forest projects in Spain. Banco Sabadell is advancing in its sustainability commitment by focusing on reducing and offsetting its own carbon emissions, as well as supporting clients with sustainable solutions and consulting for their environmental transition. In 2021, the bank complemented its action plan with the offsetting of its carbon footprint via investment in carbon dioxide mitigation projects that generate positive impact in their communities of operation. Banco Sabadell approved the offsetting of 3,632 tons of CO2, representing emissions from scope 1, 2 and 3 (relating to business travel), through investment in Spanish project certified by the Ministry of Ecological Transition (MITECO). With this initiative, Banco Sabadell bets on three forest projects, two of which are in Galicia, specifically in Parada de Achas (1,083 tons of CO2) andLaza – Touza (151 tons of CO2). The third is a reforestation project based on sustainable forest management (2,398 tons of CO2), located in the Sierra de Gredos (Ávila) and being developed in synergy with the Regional Park and the Natura 2000 network. Ana Ribalta, Director of Sustainability at Banco Sabadell, commented: “This is another example of how Banco Sabadell is aligning its activities to the Paris Agreement. It forms part of our sustainability strategy, which revolves, among other things, around our commitment to keep making progress to reduce our own emissions and to reach neutrality in all our operations.” The offsetting of 2021 emissions is one amongst a set of measures the bank has adopted to keep reducing its own carbon footprint, including the use of renewable energy since 2015, eco-efficiency measures and waste and material consumption reduction plans for water, paper and plastics. All these initiatives serve to strengthen the bank’s existing commitments as a member of the main international alliances for a sustainable and carbon-neutral economy, through frameworks such as the UN’s Responsible Banking Principles, the Collective Commitment to Climate Action or the Net-Zero Banking Alliance by UNEPFI.
Confused about the EU Carbon Border Adjustment Mechanism? We tell you everything you need to know in this article. (Edit: this article has now been updated in our 2023 version: How the EU’s Carbon Border Adjustment Mechanism – CBAM is Evolving) In a bid to accelerate European decarbonisation and meet the EU’s target to cut emissions by 55% in 2030 compared to 1990 levels, the European Commission has proposed several measures to incentivize producers to pollute less and remain on EU soil. One of them is the Carbon Border Adjustment Mechanism, which would place a carbon tariff on electricity, cement, aluminium, fertilizer and iron and steel products imported from outside the EU, thus leveling the playing field for European producers and avoiding “carbon leakage”. How would it be priced? The price of the tariff would depend on the amount of emissions generated by the product and on the price difference between carbon in the EU and in the country or region the product comes from. It would be paid by EU importers of non-EU products. It is initially focused on direct emissions from production (scope 1), but could be extended to scopes 2 and 3 after a transition period. When would it be implemented? The Carbon Border Adjustment Mechanism would come into force in 2026 after a three-year transition (but proposed changes would move this date forward to 2025). The implementation of this mechanism would coincide with the phasing out of free allowances under the EU ETS, meaning that EU polluters would be forced to truly reduce or offset emissions, since moving production elsewhere would not spare them from the carbon price. Who would be most impacted? Within the EU, Bulgaria, Ireland and Greece are the countries most reliant on non-EU imports in sectors included in the mechanism: if it were implemented today, more than 50% of their imports would be subjected to the tariff. In Spain, this number would be close to 40%. Research suggests that the majority of products included in the Carbon Border Adjustment Mechanism come from Russia, Turkey, the UK and China. Countries that have their own carbon price in place could be partially exempted from the mechanism, as importers would be able to deduct the exporting country’s carbon tax from the EU tariff. These include the UK, China and South Korea, though the level of exemption would depend on the carbon tax in place and the sectors covered. What has been the global reaction? Several countries have criticized the EU proposal, including Russia, India, Brazil and China, and some have threatened to denounce it to the World Trade Organization, which could lead to litigation. Some European industry groups have argued that the legislation would undermine the competitiveness of EU companies. The proposal was announced in July 2021, and is currently being debated at the European Parliament. Interestingly, the proposed changes would make the Carbon Border Adjustment Mechanism more radical, with an earlier implementation date and more products included in the scheme. The proposal now has to be debated among member states. How can ClimateTrade help? As a European-based blockchain marketplace for climate, ClimateTrade is deeply connected with the EU carbon market. Contact our team if you need help to understand how this measure would affect your company.