The focus from governments, investors and consumers on corporate efforts to move to a ‘net zero’ future has never been greater. As such, more than ever, companies are looking at ways to reduce and offset their Greenhouse Gas (GHG) emissions.
At a global policy level the 2015 UNFCCC “Paris Agreement” requires all Parties to put forward their best efforts through nationally determined contributions (NDCs) and to strengthen these efforts in the years ahead. There is also dramatic growth from companies adopting clear corporate goals to reduce GHG emissions.
According to CDP (a global carbon disclosure body) “515 investors with US$106 trillion in assets and 147+ large purchasers with over US$4 trillion in procurement spend are requesting thousands of companies to disclose their environmental data through CDP”
Initiatives such as the RE100 and Science Based Targets are also engaging companies in making commitments to green energy and a low carbon future. Over 250 companies accounting for 228 TWh of demand have now signed up to the RE100 scheme, publicly committing to achieve 100% renewable power.
With more Government action and investor scrutiny on the way there is a lot to be gained from early action and a clear low carbon strategy.
How we can help?
With multiple initiatives, different reporting frameworks and changing government policy, it can understandably be difficult for companies to develop the right strategy to achieve a net zero target.
In our experience, companies should take time to consider what solutions (or portfolio of solutions) make most sense to achieve their stated goals within your business. Amongst other things this should take into account the sustainability message, internal drivers, timescale, growth plans and compliance with carbon reporting frameworks.
Examples of solutions to achieve net zero include:
- Project based Carbon Credits (‘Offsets’)
- Green Certificates – RECs and Guarantees of Origin (GO)
- Green Tariff Supply and Corporate PPAs
- On site projects that reduce energy demand or lower emissions
Carbon Credits or Offsets
A carbon credit is a tradeable certificate that represents the avoidance or removal of one tonne of CO2e emissions. By purchasing carbon credits you are financing emission reduction projects around the world.
Carbon credits adhere to a strict set of standards and it is vital that projects are checked and registered under an internationally recognised verification standard. These standards highlight different benefits while ensuring that the project is real, verified, permanent and additional.
A Renewable Energy Certificate (REC) or Guarantee of Origin (GO) is an electronic document which ensures that one MWh of electricity has been produced from a particular energy source.
For companies looking to commit to the use of renewable electricity, the use of Green Certificates provides a flexible way to ‘green’ their existing supply and is recognised under the GHG Protocol Scope 2 Guidance.
Companies taking their first steps towards a net zero goal should look to gain confidence and understanding of the goals within your business. In the short-term, easy to implement solutions such as carbon offsets or Green Certificates provide flexibility as well as full compliance with GHG reporting standards.
As understanding and confidence grows within the business, longer term green energy supply contracts and low carbon project-based solutions can further demonstrate a company’s commitment to a net zero future.
Please contact us to find out more
Our social responsibility
CF Partners is strongly committed to continuously reducing its carbon footprint and taking responsibility for its impact on the environment by partnering with, supporting and advising for-profit and non-profit organisations.
Actions taken include:
- Ensuring all power and gas supplied by Brook Green and So Energy is 100% green.
- Our CDM Portfolio: We have invested in 34 renewable energy projects.
- Membership of the Institutional Investors Group on Climate Change; a forum for collaboration on climate change for European investors.
- Bikin Tiger Project: CF Partners has contributed to the conservation of the Amur Tiger through participation in the Bikin Tiger Project by advising and investing in a unique WWF and German Ministry of Environment carbon credit project to save half a million hectares of virgin forest in Russia
CF Partners provides clients with access to a range of commodities, covering the physical and financial supply of natural gas, power, emissions, crude oil, refined products, biodiesel petrochemicals markets, agriculture and green certificates.