Updated: Jun 14
Our Directors were recently featured in an article in Business News magazine, discussing the carbon market and how Decarbonology can help businesses achieve their Net Zero goals.
Globally, governments are introducing emissions trading schemes to combat climate change, such as the EU’s Emissions Trading System and the Australian Carbon Exchange (expected in 2023) and international border adjustments are being introduced as a means of equalising the price of carbon between domestic products and imports, preventing carbon-intensive production being moved abroad (to fewer countries with less-stringent policies).
As well as regulatory drivers, companies are faced with increasing market pressures from investors, shareholders and customers as Environmental, Social and Governance (ESG) criteria are increasingly relied upon to evaluate the performance of companies, with banks, lenders, investors, and customers tending to avoid those that pose a financial risk due to their unsustainable the adoption of business practices that fail to meet sustainable development goals.
“Another driver of change was the introduction in Europe of the Carbon Border Adjustment Mechanism (CBAM), which is effectively a carbon tax. It means exporters unable to demonstrate carbon neutrality will be taxed to account for that.”
“The introduction of CBAM is a watershed moment for industry,” Mr Edwards said. “Many companies will need to calculate and record their whole carbon footprint if they are exporting from Australia and that commodity is imported into Europe, directly or indirectly.”
He said industry in Australia would be forced to rapidly catch up with global measurement and reporting standards.
At Decarbonology, we specialise in complete carbon solutions, and support our clients in their journey to Net Zero. We make it easier for companies to complete full Life Cycle Assessments, enabling them to identify areas where efficiencies can be gained, and provide solutions to achieve their targets.
A key focus for the company is an automated system to accurately measure carbon emissions and abatement using international standards. “People will need to independently and transparently verify the claims they are making about their greenhouse gas emissions and strategies to reduce them,” Professor Lund said.
“You have to be able to certify and verify carbon emissions throughout the whole process and supply chain and therefore you need a very strong audit trail. “That can be a laborious process if you don’t have the systems set up.”
He said Decarbonology could calculate industry and sector data and assist firms throughout the whole value chain to reduce their emissions.
“Being based on an open-source platform and common data format, the Decarbonology system allows everyone to more easily lean in and work together to understand and reduce emissions throughout the value chain, if they wish to, as opposed to having the data locked up in proprietary systems with different formats,” Professor Lund said.
“Companies that are genuinely seeking to be carbon neutral will be wanting to share information so stakeholders, investors, tax departments and so on can verify the source data around the world.”
Our goal is to accelerate the world’s transition to beyond Net Zero. For more information about how we can help develop a strategy to achieve your Net Zero goals, contact our team for a chat.
Read the whole article here: https://www.businessnews.com.au/article/Investors-warm-to-carbon-farming