We work with our clients to account for and reduce their carbon emissions. In the main reductions are enabled through energy efficiency, process improvement and low carbon energy generation.
Some of our clients want to lower their emissions further by investing in projects that have a carbon reduction impact. In these cases we have traditionally steered them towards projects hosted in non Annex 1 countries and those certified by the various international accreditation standards endorsed within the UK government's quality assurance guidelines.
Recently we have seen a drop in demand for this type of initiative and instead we are regularly asked if there are carbon reduction projects based in the United Kingdom that clients can fund and count against their annual emissions profile.
Clients claim that the current offsetting model does not deliver value, there is no obvious link between the offsetting project and the brand values of the business and there is difficulty engaging stakeholders with the projects chosen.
In April 2010 we conducted some research to gauge the feasibility of the inclusion of UK projects in the voluntary carbon reduction agenda. We spoke to over 30 organisations and individuals involved in the offsetting sector.
Here's what the market told us:
Historically opportunities for UK-based voluntary carbon reduction projects have been hindered by certain barriers:
- Standards - No universal standard currently exists for the certification of UK carbon reduction projects for the offsetting market
- Pricing - It is generally perceived that UK generated carbon reductions are delivered at a higher price per tonne than those coming from projects in the developing world
- Additionality - Does voluntary funding really pay for carbon reductions if a project also benefits from government incentives or regulatory requirements?
- Double counting - If a project receives both voluntary and regulatory funding, will the same single emission reduction be counted more than once?
Our research shows that these barriers are now lowering to create an exciting opportunity for businesses who want to offset but through projects based in the UK.
As a result Sustain has developed a voluntary carbon reduction service that allows companies to invest in UK-based projects with measurable carbon reductions. The service takes clients through a six-stage process which includes baseline emissions measurement, project selection, project management and implementation, evaluation and reporting.
The following types of UK-based voluntary carbon reduction projects are available from Sustain:
UK woodland creation:
The UK Government has ambitious reforestation targets -
approximately 12,000 hectares per annum. To support this process it
has developed a certification framework for UK Woodland creation
that allows carbon finance. This framework is called the Woodland
Carbon Code (WCC) and it provides a framework, registry and a
carbon modelling methodology that will sit alongside the existing
QAS guidelines for offsetting. The WCC will be formally launched in
Spring 2011 and Sustain is one of the named organisations on the
Forestry Commission website able and experienced in designing and
implementing WCC compliant projects.
Defra and the Forestry Commission are also reviewing the Green
House Gas reporting guidelines for companies in the UK - allowing
UK woodland creation to be reported against net emissions.
community-based UK offsetting schemes:
An increasing number of companies are prepared to take recognition for enabling carbon reductions through this type of project rather than needing to own an accredited carbon credit from an international, certified project.
This presents an opportunity to create schemes that link Corporate Social Responsibility (CSR) with credible carbon reduction programmes in the UK. Schools, leisure centres, libraries, hospitals, university buildings, care homes, social housing projects all present good opportunities for innovative project design.
Typically, energy efficiency measures deliver the carbon savings and any money saved through lower energy bills can be re-invested in the project itself - books for schools, equipment for hospitals etc.
These projects can sometimes be match-funded by the Carbon Trust or other government agencies.
supply chain re-investment:
Some companies now seek to follow sustainability best practice and work within their supply chain when addressing unavoidable carbon emissions. Schemes are now emerging where emissions credits are purchased or transferred from projects within a business's supply chain. The credits are used to mitigate unavoidable emissions and the funds generated are re-invested to build capacity or enable further carbon reductions.
product level offsetting
New methodologies are emerging for measuring the carbon footprints and lifecycle analysis of products. Organisations that go down this route are then challenged to act on this measurement and mitigate the product's carbon emissions. This presents an opportunity to link the product offsetting project with the target customer base - staff, customers etc.
