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Why is the #neutralcarbon hashtag so popular?
The number of companies aiming for a carbon-neutral trajectory has doubled in less than a year, reflecting the importance of climate change issues for companies and investors alike! But behind these sometimes greenwashing declarations, what does carbon neutrality really mean?
The goal of carbon neutrality was popularized in the 2015 Paris Agreement, which called for "achieving a global cap on greenhouse gas emissions as soon as possible". This via achieving "a balance between anthropogenic emissions by sources and anthropogenic removals by sinks of greenhouse gases during the second half of the century". (Thanks for hanging in there!).
Put simply, carbon neutrality corresponds to a state of equilibrium between man-made greenhouse gas emissions and their removal from the atmosphere. This notion is fundamental, as achieving carbon neutrality by 2050 at the latest is the only likely scenario for limiting global warming to +1.5°C , given the direct correlation between global warming and greenhouse gas emissions (+1.5°C compared with pre-industrial levels (period 1850-1900), which serves as a reference. In the opinion of all authoritative scientists, in particular the IPCC).
This is all the more crucial as the impacts of global warming on natural and human systems are already visible: heat waves and associated fires, heavy rainfall and drought threatening ecosystems, etc.
Until then, every delay makes it more difficult to achieve this planetary objective, as carbon emissions accumulate. It is therefore urgent to act quickly and decisively. Acting fast and decisively means first and foremost reducing our carbon emissions: -45% vs 2010 by 2030.
Can companies "go carbon neutral"?
By definition, carbon neutrality can only be measured on a global scale, which is why it is so important to work TOGETHER on common scenarios, each acting at their own level (States, Companies, Citizens) to achieve these reduction targets, in absolute terms or in terms of intensity (e.g.: tonne of CO2 per product sold). The aim is to ensure that the sum of all these efforts enables us to stay below 1.5°C of global warming. This is the raison d'être of the SBTi.
(Science Based Target Initiative) and its SBT +1.5°C with sectoral trajectories (Sectoral Decarbonization Approach).
The carbon footprint of a product is the sum of all the emissions emitted to manufacture, transport, sell, use and destroy it (or, in the best case, to recycle it in a circular system).
This is why a true corporate carbon footprint includes both upstream and downstream emissions. Hence the need to work TOGETHER with our suppliers and customers to achieve our reduction targets.
At the level of an organization, we prefer to speak of a "contribution to global carbon neutrality" rather than carbon neutrality.
In practical terms, how can companies "contribute to carbon neutrality"?
On paper, two paths are possible:
1) Reduce the emissions induced by the company's activity
2) Offset the emissions induced by avoided or negative emissions (i.e. finance carbon capture projects)
At Traace we focus on reducing carbon emissions - the most certain solution - but encourage the financing of solutions to increase carbon sinks, while warning of the importance of controlling them.
1. Reduce the emissions generated by our activities
This is the only truly effective lever for reducing emissions in the long term. It involves measuring your carbon footprint and then reducing your main sources of emissions (for example, replacing your fuel oil with renewable energy, rethinking your purchases - source, type of materials, food, etc. - or reducing your business travel).
This lever must be the fundamental pillar of any strategy towards carbon neutrality, as it is the only approach that can simultaneously:
a. Limit the accumulation of GHGs in the atmosphere
b. Be in line with the objectives of the Paris Agreement
c. Build a business resilient to climate risks and contribute to a future Carbon Neutral economy.
2. Offset induced emissions with avoided & negative emissions
There are many ways to combat global warming. Alongside a reduction strategy, it is also possible to offset emissions with so-called "negative" or "avoided" emissions.
2. a. Avoided emissions
Increasing avoided emissions consists in marketing low-carbon products and/or services, in order to substitute products (with the same use) that generate more GHGs. In this way, by capturing market share, these low-carbon products make it possible to avoid the C02 emissions of more emissive competing solutions (e.g. electric cars vs. internal combustion engines in France).
2. b. Negative emissions
Negative emissions correspond to the financing of solutions to increase carbon sinks. These solutions, some of which have been the subject of numerous R&D programs over the past twenty years, are still uncertain. Their widespread use is penalized by a number of constraints:
- High cost in relation to the tonnes of CO2 stored: 100 to 150 euros per tonne of CO2 avoided
- The risk of gas leakage linked to the presence of faults
- The health risk of acidification of the environments where the gas is injected and contamination of nearby water tables.
ADEME believes that the potential of this solution is limited, and that it should only be considered as "the last step in a decarbonization strategy".
3. Adopt a "positive climate" strategy
Finally, we therefore recommend adopting a "positive climate" strategy that is divided into two stages:
i. Define a trajectory towards ambitious carbon neutrality in line with international commitments
ii. At the same time, contribute financially to the development of carbon sinks or C02 capture/sequestration technologies in order to offset emissions that could not be reduced. In this way, we can limit our environmental impact as much as possible during our transition to neutrality.
To build this climate strategy and contribute to global carbon neutrality, we recommend:
1. Measure and track emissions
2. Set an ambitious carbon trajectory and targets
3. Dynamically manage targets over time to converge towards carbon neutrality.
And of course, Traace can help!
Our "Reduce" module supports you in defining and implementing your decarbonization plans. They enable you to steer your carbon trajectory and identify the most relevant action levers within your business directly from our carbon footprint platform.
