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Navigating the world of carbon credits: understanding the opportunities
The energy transition and decarbonization are at the heart of Quebec’s concerns. Having explored the essential stages of decarbonization in our first article, it is crucial to understand the role carbon credits play in this complex process. This financial mechanism can be a powerful tool for achieving ESG (Environmental, Social and Governance) objectives while promoting a low-carbon economy.
What is a carbon credit?
A carbon credit represents one tonne of carbon dioxide (CO2 ) that has been avoided (mitigation credit) or removed (sequestration credit) from the atmosphere through environmental projects such as reforestation, carbon capture and storage, or energy efficiency innovations. Some credits can be bought and sold on voluntary or regulated markets, offering financial compensation for emission reduction efforts.
The impact of carbon credits on decarbonization
Acquiring carbon credits enables companies to offset their residual emissions (greenhouse gas emissions remaining after the company or institution has already taken steps to reduce its carbon footprint), while investing in projects that support the energy transition. These credits not only encourage the reduction of greenhouse gases (GHGs), but also stimulate innovation in clean technologies.
Integrate carbon credits into your decarbonization strategy
- Emissions assessment: the first step is to carry out a GHG inventory of the actions under your operational (or financial) control to identify the main sources of emissions.
- Direct reduction: the next step is to identify the most cost-effective actions on buildings, such as improving insulation, optimizing heating, ventilation and air-conditioning (HVAC) systems and installing renewable energy technologies.
- Another possible option: offsetting with carbon credits: for emissions (often residual) that cannot be directly eliminated, the purchase of carbon credits offers a viable solution. This option, which should be seen as complementary, should not replace pillar actions to reduce emissions. Select carbon credit projects that align with your values and sustainability objectives..
Conclusion
Carbon credits are much more than just a financial tool; they are an integral part of Quebec’s energy transition strategy. They offer an opportunity to actively participate in the fight against climate change, while promoting sustainable business practices.
By investing in carbon credits, you not only contribute to global decarbonization, but also demonstrate your commitment to responsible, forward-thinking management.
