Carbon footprint compensation, the path to a Net Zero environment

Climate change and, therefore, the variation in temperature of the planet is currently one of the greatest concerns that humanity has. In this sense, the United Nations Organization has focused on the objective of being carbon neutral by 2050 and, in this way, encourage companies to invest in the development of strategies and solutions that allow them to address the necessary Energy Transition Global.

Without going any further, in the Paris Agreement, a total of 195 countries committed to adopt drastic measures to mitigate the emission of greenhouse gases, the environmental impact and increase the resilience of ecosystems.

Similarly, in the European decarbonisation framework and with the action plan to reduce emissions, calledGreen Deal, as a base, is posting to make Europe the first climate-neutral continent in the world. In addition, the European Union has committed to reducing emissions by at least 55% by 2030 through the “Fit for 55” package of measures. A whole series of diverse strategies at global, European and national level that are born with the purpose of achieving“Net Zero” goal in the business network of each country.

Carbon offsetting and markets

In this context of metamorphosis and climate emergency, various solutions are being promoted for the adaptation and mitigation of climate change. Among them, it is worth highlighting the compensation of the carbon footprint, which consists of the voluntary financing by a company of an environmental project with the aim of reducing the greenhouse gas emissions it emits into the atmosphere.

This solution is often used as a means to achieve carbon neutrality, that is, a theoretical equilibrium point between the amount of carbon dioxide produced by a company due to its activity and the amount of CO2 reduced thanks to a financed project.

With this proposal, the business fabric is called upon to make decisions related to raising awareness of climate change and the environmental impacts it produces, in order to reduce greenhouse gas emissions and embark on a sustainable future. At this point, the offset, which must be “responsible” in order to offset those residual emissions that cannot be reduced to achieve the “Net Zero” goal. That is why companies must first focus their efforts on reducing.

As we have pointed out, minimizing these emissions has become a fundamental issue at a global level to improve the quality of human life. Therefore, one way to reduce these emissions is to support verified carbon offset projects in the carbon market.

These trading systems arise with the intention of obtaining the CO2 reductions necessary to undertake a sustainable future. To do this, these markets allow the sale or acquisition of so-called carbon credits that limit the emission of a certain amount of CO2 or GHG. In short, depending on the number of certificates available, one has the right to emit one quantity or another of GHG in a year.

The path towards decarbonization and, as a precept, towards carbon neutrality must be built under the premises of measuring, reducing and compensating the carbon footprint. For this reason, compensation projects are one of the essential ways to mitigate climate change.