The climate is changing around us. And the conversation around it is getting louder. The need for sustainable solutions and cooperation from all walks of life is certain. But for businesses, playing our part isn’t always straightforward. Our objective is clear but the pathway often isn’t. It’s not as simple as turning off a light or two. But with the right help, reducing your emissions can be easier than you think.
As you begin your emissions journey, you’ll likely come across environmental attributes. Including certificates, credit units and offsets, environmental attributes are tradeable assets that represent a reduction in greenhouse gas emissions.
There are heaps of different kinds, but all are generated by projects that reduce, remove or prevent greenhouse gases in our atmosphere. This could be projects as simple as upgrading lighting, or as complex as savanna burning.
Once created there are two things you can do with your attributes, you can sell them or you can surrender them. Selling them will put a little money in your pocket, but often means you give up your right to claim the reduced emissions as your own.
Surrendering your attributes means you retire them from trade and claim the reduction yourself. There’s no direct financial benefit, but you’ll see your emissions total shrink. You may want to surrender attributes you’ve generated, or purchase them specifically for this purpose.
But not all attributes are created equal. There are many kinds, created and traded under specific rules both locally and internationally.
For example, in Australia ACCUs are offset units generated by activities that avoid, reduce or remove greenhouse gas emissions. Where as LGCs are certificates generated by the large-scale production of renewable energy.
There are even attributes that you can sell and still claim as reductions of your own.
With so many different attributes and even more options for dealing with them, there is no one answer for how to make the most of the environmental market. It can depend on your business, your climate targets and the kinds of attributes you have in play.
So wrangling this market is often best left up to the experts, but understanding it can help you make the right decisions for your business.
Chat to the experts. Find out how to make the most of your attributes and get in touch with the team at Ecovantage today.