In partnership with The Mexican Foodbanking Network, a Miami-based climate tech company, CoreZero, has developed a method to create carbon credits to reduce carbon dioxide and methane emissions of food waste through the voluntary carbon market.

CoreZero had quantified the prevention of 221,800 tons of carbon emissions and converted them into carbon credits.

World’s First Carbon Credits from Food Waste

The 221,800 carbon credits are the world’s first carbon credits from food rescue. They represent the beginning of an option to offset that converts waste into value.

CoreZero Sustainability Director Nicolás Dobler said:

“We are excited to assist in driving incremental value out of waste and monetizing efforts to scale up social and environmental impacts, saving more products and reducing the food gap for those in need while contributing to climate change mitigation… Our model is replicable to scale the impact of zero-waste projects globally, enabling a new and disruptive vertical of offsetting that provides social, economic, and environmental benefits.”

Emissions of Food Waste 

Production, transportation, and handling of food generate significant carbon emissions. The global food system emits about a third of total annual GHG emissions. Food waste represents about half of this footprint and when food ends up in landfills, it releases methane.

One study found that in 2017, global food waste emitted 9.3 billion tonnes of CO2e (GtCO2e). That’s about the same as the total combined emissions of the US and the EU for the same year. 

In the United States alone, the carbon emissions of food waste are equal to those of 42 coal-fired power plants. 

The Environmental Protection Agency or EPA estimated that each year, U.S. food loss and waste releases 170 million metric tons of carbon dioxide equivalent (million MTCO2e) GHG emissions. This doesn’t even include landfill emissions.

Globally, the waste sector accounts for about 20% of human-driven methane emissions. This greenhouse gas is even more potent and has 80x the warming power of CO2 over two decades.

Overall, GHG emissions from food that’s never eaten accounts for about 6% or higher of global total emissions.  

Another study found that almost 24% of food’s emissions come from food that is lost in supply chains or wasted by consumers. 

Meanwhile, two-thirds of the emissions (15%) is due to poor storage and handling techniques, spoilage during transport and processing, and lack of refrigeration. The remaining 9% of emissions is from food thrown away by consumers and retailers. 

To put that figure in context, it’s about 3x the aviation sector’s global carbon footprint. In other contexts, food waste will be the 3rd largest country emitter. The U.S. accounts for 13% while China 21%.

Reducing Food Waste and Climate Change

When food gets wasted, all inputs used in producing, processing, transporting, preparing, and storing it also go to waste. Food loss and waste also contributes to the climate crisis with its significant carbon footprint. 

And CoreZero seeks to help ramp up initiatives that have an actionable impact in food waste reduction. The company’s CEO and founder, Jean Pierre Azañedo, understands the responsible waste approach to both address the hunger crisis and climate change. Azañedo has over a decade of experience in waste management.

The climate tech firm’s methodology measures and quantifies the impact that reducing food waste has on climate change. 

Through its quantification and monetization method, both nonprofits and businesses can monetize their positive actions with carbon credits. Companies can get those credits and then use them to offset their own carbon emissions. 

CoreZero’s from waste to carbon credits is a 3-step approach to climate innovation. 

Integrate. CoreZero’s platform integrates into your operations to assess the project’s potential, identify the methodology and define the emission factors that apply.
Quantify. They measure your positive impact and convert it into carbon reduction units, tracked and reported using blockchain technology and verified through an independent third-party process.
Monetize. Carbon reduction units transformed into tradable carbon credits and monetized in the Voluntary Carbon Market (VCM).

With this approach, CoreZero aims to transform the 1.3 billion tons of food waste each year into carbon credits. Thus, it becomes a turning point in how food waste and offsetting are now considered by NGOs, companies, and individuals. 

As Azañedo noted:

“I hope this turning point contributes to a change of perspective towards waste and its value… We designed a way to accelerate waste avoidance and valorization to tackle climate change. The potential of waste is boundless, so let’s, as a society, choose not to be wasteful with waste.”

The post Turning 1.3 billion tons of Food Waste into Carbon Credits appeared first on Carbon Credits.

Shell said that climate change could have adverse effects on its business, particularly on its oil and gas assets and profits, costing the firm around $1.5 billion in annual carbon cost by 2032. 

The energy giant noted that the soaring carbon prices in the coming years caused by changing regulations and decarbonization policies will result in uncertainties. 

The Risks to Shell’s oil and gas business

Shell stated in its 2022 annual report that the energy transition could have a significant adverse impact on its oil and gas business. The company admitted that its assets, revenues, and operations are at risk because of climate change. 

Not to mention the possibility of regulatory matters that may hinder project progression and operations. 

As the firm reported, the transition will also possibly make compliance costs go up while restricting the application of hydrocarbons. Shell also stated in the report that:

“The lack of net-zero-aligned global and national policies and frameworks increases the uncertainty around this risk.”

When the Russian invasion of Ukraine in 2022 caused oil and gas prices to spike, Shell earned a huge profit of about $40 billion.

But just like other oil and gas businesses, Shell is under greater pressure from shareholders and environmentalists. On the other corner are investors and regulators focusing more on transitioning to a low-carbon economy. 

The energy transition is a must. Those who don’t or can’t adapt will be at the perils of losing billions of investments from climate investors. They need to rethink their business models to align with the transition.

Otherwise, the company noted that in an increasing carbon price scenario, “the risk of stranded assets may also increase”. 

Reducing Emissions Steadily

Despite those risks, the energy major was able to cut its absolute carbon emissions in 2022 steadily. That’s mainly because of lower oil product and gas sales and divestments.   

Shell follows the Greenhouse Gas Protocol, the global standard in carbon accounting, in reporting its absolute emissions. The Protocol defines each scope as follows:

Scope 1 covers emissions from sources directly controlled by an entity; 
Scope 2 includes indirect emissions from bought power, heat, or cooling; and 
Scope 3 covers other value chain emissions.

Shell reported that it’s working to reduce both its net carbon intensity and absolute Scope 1 and 2 emissions. It aims to reduce its absolute Scope 1 and 2 emissions by 50% by 2030 and hit net zero by 2050.

As seen in the chart above, Shell aims to cut its net carbon intensity by 20% by 2030. This reduction includes all emissions sources from operations (Scope 1), energy use (Scope 2), and products end-use (Scope 3). 

The oil giant managed to reduce emissions intensity in 2022 (76 grams of CO2e/Megajoules) from the 2016 baseline (79 grams of CO2e/Megajoules).

Likewise, the 30% drop in both Scopes 1 and 2 emissions were because of divestments in oil and gas. Conversion and shutdown of existing assets as well as renewable assets purchases also contributed to the reduction. 

While the decline in Scope 3 emissions, from 1.30 billion mtCO2e in 2021 down to 1.17 billion mtCO2e in 2022, was due to decrease in oil and gas sales.

The total emissions by the company from all three scopes went down to 1.24 billion metric tons of CO2e in 2022 from 1.64 billion mtCO2e in 2016. 

In summary, here are Shell’s climate targets with actual achievements in 2022. 

Concerns Over Carbon Prices

Shell expects that the cost it has to pay for carbon will soar in the coming decade. 

The company has paid the EU Emissions Trading Scheme (ETS) and other carbon pricing schemes around $493 million in 2022. This year, the forecasted cost is at around $0.8 billion and $1.5 billion in 2032. 

The estimate is based on a forecast of the firm’s equity share of emissions from operated and non-operated assets and real-term carbon cost estimates using the mid-price scenario.

Under its mid-price scenario, carbon prices are projected to be at $125/mtCO2e from 2030 onwards. Under a high-price scenario, the cost will be $220/mtCO2e.

Within the decade, carbon costs are primarily driven by policies, either through carbon taxes or emission trading schemes, according to Shell. Both systems vary globally, which makes it difficult for the company as to what specific assumptions to consider in its decisions. 

This prompted the oil major to call for further clarity on current carbon pricing mechanisms. They are, after all, critical to setting emissions reduction targets and achieving them. 

Carbon prices differ a lot per country and governments worldwide don’t have a single global carbon price to follow. 

For instance, the cost of each carbon credit in the EU ETS is about 10x more than that in the China carbon scheme. Last month, EU carbon prices reached record levels passing 100 euros. 

Yet, Shell is still opting for carbon credits to offset its hard-to-abate emissions. In 2021, it bought 5.1 million tonnes of carbon credits, and 4.1 million tonnes in 2022. 

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NH Investment & Securities Co., one of South Korea’s largest securities firms, is tapping into agricultural carbon offset credits as the sector becomes popular for corporate emitters.

NH is one of the largest securities firms in Korea that offers a broad range of financial services. These include wealth management, investment banking, brokerage and merchant banking through 120+ branches and subsidiaries. 

The Seoul-based finance company is looking to tap the carbon credit market by supporting biochar initiatives in partnership with 4EN.  

Agricultural Carbon Credits

Carbon credits purchases dropped last year. But the demand for them will rise as polluters in sectors with hard-to-abate emissions are under pressure to meet their decarbonization goals. 

There are criticisms over some types of carbon credits like the ones from renewable energy assets. So investors are focusing more attention on other types such as the credits from land-based projects.

Agricultural carbon credits have been on the rise due to the quality of carbon capture and storage they provide. 

The amount of carbon credits created are based on the amount of carbon farmers draw down into the soil. The same goes for GHG emissions they reduce above the soil.

There are plenty of ways agricultural practices can reduce or remove carbon and so generate the credits. It can be nitrogen management, no-tillage farming or growing cover crops. But for NH, it is through biochar.

NH Backing Biochar Carbon Credits

NH parent company Nonghyup Financial Group Inc. is owned by over 2 million member farmers. As per Park Kun Hoo, head of NH’s client solution group and oversees a carbon finance team, the network has a potential to generate new credits. 

NH plans to support projects that convert spent coffee grounds or cow manure into a charcoal-like substance called biochar. Biochar is capable of absorbing and storing carbon when it’s buried underground. 

Park noted in an interview that: 

“We can collect and utilize plant residues and animal waste from Nonghyup’s massive supply chain in the agricultural sector, and turn them into biochar or even electricity… By doing so, we are not only pushing for more sustainable farming, but also creating carbon credits.”

Biochar is commonly used in agricultural applications because it can improve soil nutrients and increase crop yield. And better yet, biochar applications can also increase soil CO2 emissions.

Biochar is a solid material that has high levels of carbon. It is a stable source of carbon because microbes find it so hard to break down. When incorporated into soils, it is 10x to 100x more stable than the material from which it’s made of.

That means the carbon contained in biochar is not likely to degrade to CO2 to the same extent as other organic materials.

In particular, a study estimated that biochar can sequester as much as 2 GtCO2 per year by 2050 at a cost of $30–$120 per ton of CO2.

Biochar also offers agricultural benefits such as increased aeration and water holding capacity. Verra, the biggest carbon registry, noted that biochar can significantly contribute to climate change mitigation when deployed at a massive scale. 

Biochar carbon credits are usually priced in the range of $3 to $20+ per MtCO2e. But some biochar projects have sold credits for $110/tCO2e.

The Biochar Deal with 4EN

NH set up a carbon finance team in December last year. It has closed a deal to invest in 4EN, a Seoul-based biochar producer. 

4EN creates sustainable environmental values by developing alternative fossil fuels and quantification of GHG reduction. It focuses on commercializing BECCS/BECCU technology for biomass and waste resources. These by-products are from agricultural fields such as coffee grounds and industrial activities.

BECCS refers to Biomass Energy Carbon Capture and Storage. BECCU means Biomass Energy Carbon Capture and Utilization Pyrolysis. 

NH and 4EN biochar agreement is forecast to generate 167,000 tons of carbon credits by 2030. 

The post One of Korea’s Largest Banks Backs Carbon Credits appeared first on Carbon Credits.

All companies will have to take responsibility for their carbon footprint and carbon offsetting projects are becoming their strong ally. 

A business may have already identified its emissions sources, calculated its GHG emissions, and implemented strict reduction measures…yet, hard-to-abate emissions persist. They are emissions that can neither be reduced nor prevented. 

Though there are technologies currently being developed to further help in companies’ carbon reduction goals, immediate actions are necessary to compensate for unabated footprint. 

If there’s something that can be done right now to that end, it’s investing in carbon offset projects. 

If done in the right way… carbon offsetting projects can have several real positive impacts on the climate. Many can even support sustainable development on site. 

But if implemented improperly… they deliver insufficient results or may serve as a cheap alternative to more elaborate and real changes companies need. 

So, what are carbon offset projects or how do they work? What are some types of carbon offsetting projects to consider? 

You’ll know in detail as we explain them below while also introducing to you the best carbon offset programs you may consider. 

What are Carbon Offsetting Projects?

Carbon offset projects are verified activities of environmental conservation or protection which reduce, avoid, or remove greenhouse gas (GHG) emissions from the atmosphere, helping to mitigate climate change. 

As Article 12 of the Kyoto Protocol says, governments and companies may fund carbon offset projects as part of their emission reduction strategies as well as to promote sustainable development in developing countries. This financial support enables project activities that reduce emissions. 

To put it another way, financing carbon offsetting projects compensates for CO2 emissions that were already in the atmosphere elsewhere.

Each tonne of emissions reduced by a project creates one carbon offset or carbon credit. Both individuals and companies can invest in these projects directly or buy the carbon credits to offset their own carbon footprints.

Carbon offset credits are tradeable on the market and face controversy in how easy they are to attain. 

Yet, the concept is the same: a company is more or less investing in a carbon offset project to balance their own emissions.

What is the best way to offset carbon?

Carbon offset projects involve different efforts or innovations in climate action. Some are into protecting ecosystems over afforestation of new, or reforestation of degraded land. Others involve rolling out clean energy technologies or renewable energy sources. 

Other schemes work by soaking up CO2 directly from the air by planting trees.

Carbon offset schemes vary widely when it comes to cost. But a fairly typical fee would be around $12 for each tonne of carbon offset. At this price, a typical family would pay around $45 to offset a year’s worth of gas and electricity use.

Some people may want to offset their entire carbon emissions while others seek to balance the footprint of their specific activity such as travel. 

To do that, the traveler checks a carbon offset program and uses its online tools to determine the emissions of its travel and then buy the offsets to reduce emissions elsewhere. By paying the offset company, the emitter flight’s become “carbon neutral”.

But carbon offsetting projects don’t just slash emissions. They can also achieve other benefits such as creating jobs, improving education, and enhancing living conditions in local communities. 

Types Of Carbon Offsetting Projects

As mentioned, there are various ways of offsetting carbon emissions.  

Specifically speaking, there are over a hundred projects that can offset emissions. But broadly speaking, they can be categorized into these four major types. 

Forestry and Conservation

Reforestation and nature conservation have been the most popular offsetting schemes. Carbon offset credits are created based on either the carbon captured or the carbon avoided from entering the atmosphere by protecting trees. 

Common examples of these offset projects are reforesting the Amazon rainforests and replanting mangroves.

As a nature-based climate collusion, forestry projects may not be the cheapest option. But they are often selected for the many benefits outside of the carbon offset credits they bring. E.g. Protecting ecosystems, wildlife, and social heritage is important for companies offsetting their carbon emissions.

But what could be the problem with carbon offsets generated by these projects?

Critiques say that the corresponding credits forestry projects create are questionable. How could that be? It’s hard to determine how much carbon is reduced with these offset projects.

But the tide has turned because of the new technologies that emerge that measure carbon stored in forest trees. Methods of sustainable reforestation efforts and getting their benefits have improved a lot.  

Renewable Energy

Renewable energy offsets are from projects that involve installing solar, wind, or hydro sites across the globe. 

If you decide to invest in these projects, you are helping boost the level of renewable energy available on the grid. 

Not to mention that you’re also decreasing the reliance on fossil fuels. 

After all, renewable energy’s goal has always been decarbonization. 

As of 2022, about 30% of the world’s electricity comes from renewables, including hydropower, solar and wind. And the demand for renewables is also growing fast. 

Carbon offsetting projects involving renewables have been prevalent and so common in different countries. Take the case of India, for instance. Believe it or not, this super emitter has seen the fastest growth in renewable energy across all big economies, receiving billions of dollars in investment. 

Community Projects/Energy Efficiency

Community projects usually involve application of energy efficiency technologies to less- or undeveloped communities. These carbon offset projects often have many other benefits than just for offsetting purposes. 

They don’t only help make local communities or regions more sustainable. They can also provide empowerment that can help lift communities out of poverty. 

Water purifier manufacture and distribution is a common example of this project. It can also be providing clean drinking water to communities by making or fixing boreholes. 

Efficient cookstoves have also been popular recently with the likes of EKI Energy investing in them. These projects are often found in Africa and India where poor local communities are still using fire woods to cook food.

So how do these projects reduce carbon emissions? 

Families don’t have to burn firewood to boil water or cook their food. In effect, this protects their local forests and reduces indoor air pollution. Not to mention the empowerment provided to women who often supervise these community projects. 

Waste to Energy Projects

This last type of carbon offsetting projects typically involves methane capture in industrial facilities. The harmful gas is then converted into electricity. 

Sometimes, this project means capturing landfill gas or agricultural waste in smaller regions. 

For example, building and maintaining biogas digesters to turn waste into clean and sustainable energy doesn’t only cut waste but also slash GHG emissions. It reduces methane released into the air while also protecting the local forests.

With all these various types of carbon offset projects, you are perhaps asking which ones of them are the best pick? Well, each project is unique and is developed for certain reasons.

A carbon offset project is an initiative developed to reduce actual GHG emissions and it can be in any sector, agricultural to industrial. On the other hand, a carbon offset program refers to a set of standards made by a company or organization to measure, regulate, and review carbon offset projects.

So, the right question would be what are the best carbon offset programs? 

What Are The Best Carbon Offset Programs?

Both businesses and individuals use carbon offset programs to look for the right offset project to invest in. These programs offer different carbon offset projects that you can select to support. 

So, how do you know you got the best carbon offset program to trust? 

We’ll give you a couple of top options below. The selection is based on certain things such as transparency, the projects’ carbon offset quality, types or range of projects in offering, among others. 

One more vital criterion is third-party verification because it’s critical to validating that the project is really reducing carbon emissions. Plus, of course, adherence to high social and environmental integrity standards is also considered. 

Best Carbon Offset Programs – Top 4 Picks

Native Energy

Making it on the top spot is Native Energy, founded around the 2000s. Apparently, it’s operating in the carbon offset space for quite some time. Being certified as a B Corp and Public Benefit Corp tells us that it meets high standards for social and environmental programs.

Native Energy is also transparent about the quality of the carbon offsets their project offering produces. 

Best of all, the carbon offset program offers a broad range of projects for both individuals and companies. They cover the following project types:

Clean water
Nature-based
On-farm
Regenerative AG
Removals (CDR)/Drawdown
Renewable energy

The program also has specific calculators in place that small businesses can use. For instance, small companies can use its travel, freight, or even calculators to measure emissions, and to offset either by dollar or by tons of CO2. 

In the same way, individuals also have tools on their disposal when it comes to calculating travel, household, or activity footprint. The results of the calculation will then determine the cost needed to offset the footprint. The money paid by the polluter would then be invested into a specific carbon offset project they pick. 

To date, the program manages to achieve these results:

The confidence of their clients also lies in the fact that the carbon offsets they have are verified by the top carbon standards, namely: Gold Standard, Verra, Climate Action Reserve, and American Carbon Registry.

3Degrees

If you’re a business owner, then this carbon offset program could be your best selection. 3Degrees’ carbon offset projects are specifically meant to help businesses and utilities decarbonize their operations.

Just like Native Energy, 3Degrees is also a certified B Corp, transparent, and with third-party verified projects. However, it doesn’t have projects available for individuals, so take note of that cons. 

The program came about in 2007, believing that businesses have a key role to play in fighting the climate crisis. For over 15 years, 3Degrees has been a pioneer in providing climate solutions. Within that time period, the company has achieved these results:

The company also deals with many other carbon offset projects apart from nature-based solutions. They mostly include landfill gas capture projects.

Setting aside its proven track record in the space, what makes 3Degrees stand out from other best carbon offset programs are these points:

Quality Standards: the carbon offset program works with all four of the major voluntary carbon offset standards as the case with Native Energy. 3Degrees further ensures that each project adheres to approved protocols.

Tailored Solutions: 3Degrees help companies build a portfolio of high-quality projects that are relevant to their business and stakeholders.

Portfolio Management: holistic approach to managing portfolio while working with clients to balance immediate need with long-term goals.

Here are the specific offset projects that 3Degrees has under its hat:

Agricultural methane capture/combustion
Wind power
Forest management
Solar power
Oil recycling
Energy efficiency
Emission reduction
Biogas
Landfill gas methane capture and destruction

Terrapass

Getting third place on the best carbon offset programs is Terrapass. It makes carbon offsetting easy for both corporates and individuals through its monthly subscription model. 

It has pre-packaged bundles and monthly subscription services that make it easy for emitters to choose to address their footprint. What this means is that it would be very easy for you to offset your footprint on a monthly basis. 

The company was launched in 2004 originally to help individual people reduce their travel’s carbon footprint. But after its portfolio has grown to include energy consumption, the program has helped 1,000+ entities and individuals pay for their climate impact. 

Same with the previous programs, Terrapass also provides useful carbon tools or calculators for individuals, businesses, and even special events! The program covers these carbon offset projects:

Landfill gas capture
Abandoned coal mines methane capture
Wind power
Forestry
Farm power
Water Restoration Certificate

Those offset projects are verified by the most-recognized carbon standards. So, why pick Terrapass? 

Here’s why…

myclimate

Making it on the last list of our best carbon offset programs is myclimate. It’s a great option for multiple environmental impacts because of its extensive and diverse carbon offset projects. These include:

Biogas
Biomass
Efficient cookstoves
Energy efficiency
Hydropower
Land use and forestry
Solar waste management and compost
Water (purification and saving)
Wind

Founded in Switzerland in 2002, myclimate is an award-winning carbon offset program that covers 170+ projects in 45+ countries worldwide. Its other achievements in many aspects are outstanding and involve more than just cutting emissions. 

In particular, it financed 13 million tonnes of carbon reduction, planted over 18 million trees, and installed more than 775,000 efficient cookstoves. 

It also has easy-to-use carbon footprint calculators for these areas: 

Finally, myclimate serves a very wide range of clients from individuals to nonprofits, and companies of every size. You can be confident that your money serves its value by going to the project of your choice, with its carbon reductions verified by these offset quality standards:

Gold Standard
Plan Vivo
Verra 
Agencies of the Swiss Government

Best Carbon Offset Programs For Individuals

Needless to say, there are a lot more programs available for carbon offsetting projects. And their number continues to grow as the world is in urgent need to decarbonize. 

But not all of them have the same results or standards they adhere to. The top four options identified are a good place to start and narrow down your choices. And if you’re particularly looking for the best carbon offset programs for individuals, then just take out 3Degrees from the list of options. 

The remaining three programs work best for your individual or personal carbon offsetting needs. The carbon offset projects they offer are equally diverse.

Just remember that each project is unique so check out their details before you bet your money into it. And before anything else, see to it that the program you pick meets rigorous offsetting standards and is verified by a third party. 

Lastly, you can also think about whether you want a program that supports projects in your locality or in international regions. 

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