Thursday, 26 May 2011
"All the Trees Will be Very Unhappy"
Now, ecologists are hinting that climate change is causing yet another harmful feedback loop that reduces forests' ability to store carbon.
Throughout the tropics, lianas compete with trees for light, water and soil nutrients. These fast-growing vines use the tree trunks for support and then sprout luxuriant leaves when they reach the tree canopy. Where lianas are particularly aggressive, trees are weaker and die faster. In some cases, they become so thick that trees are more easily blown over in heavy wind and rain. The fallen trees die, but the flexible lianas survive and sprout new shoots.
As ecologist Dr. Stefan Schnitzer notes in the New York Times article, “If you come back in a year, it will have changed,” he said. “There will be a whole lot of vines in there, all rooted, all growing. And all the trees will be very unhappy.”
Faster growing trees are better able to compete with lianas, but these tend to have softer, less dense wood - which stores less carbon. All told, the growth of lianas can reduce the carbon storage capacity of a forest by as much as 10%, according to the article.
Now for the climate feedback connection: lianas appear better able than trees to adapt to extended dry periods, precisely the conditions expected in much of the tropics as the planet warms. Lianas also appear more effective at utilising extra carbon dioxide to form new growth, so increasing atmospheric CO2 concentrations could be enhancing lianas' competitive advantage versus slower-growing trees. In other words, human activity may be impeding forests' ability to absorb CO2, which makes it harder to reduce CO2 concentrations.
Long-term studies to understand how lianas and trees interact are just beginning, but this is a sobering reminder of the unanticipated effects of global climate change.
Tuesday, 24 May 2011
After the DECC Quality Assurance Scheme
The first point to recognise is that this isn't the end of the world for the voluntary carbon market. Few serious companies participated actively in the scheme, and even those sold relatively few QAS approved carbon offset credits. In terms of quality control and integrity, the QAS was obsolete before it even launched, having been overtaken by the Code of Practice launched in 2008 by the International Carbon Offset and Reduction Alliance (ICROA). The ICROA Code is followed by some of the largest carbon offset retailers around the world and governs the types of carbon credits sold, the way carbon footprints are calculated, the reduction advice given to customers, and the way members and their customers communicate a company's "carbon neutral" status. It should be no surprise to learn that Carbon Clear is a founding member and has actively led the evolution of the Code.
Last year the British Standards Institute launched a carbon neutrality specification that mirrors many aspects of the ICROA Code - but not the QAS.
The second point is that the end of the QAS helps unshackle the voluntary carbon offset market. The original planners of the QAS sent mixed messages, describing the characteristics of a quality carbon credit, and then rejecting VCS and Gold Standard credits even when they were shown to meet those criteria. What is more, subsequent Government guidance documents all pointed to the QAS as the arbiter of quality, despite rising criticism from indsutry.
VER credits from VCS, Gold Standard and elsewhere offer a number of benefits over the QAS approved varieties. First, these credits are directly traceable to specific projects that often provide co-benefits unmatched in the compliance credit world. Voluntary offset customers want credits that help them communicate their environmental and ethical credentials to stakeholders. It's much easier to accomplish this objective with an improved cookstove project in rural Malawi than a faceless industrial gas destruction project in China, or even more-faceless European allowances from a German steel mill. What is more, these VER credits are often half the price of compliance credits - and sometimes even less. One wonders how many customers were discouraged from offsetting by these mixed messages from the QAS.
By announcing that Government would now look to the carbon markets to establish best practice, DECC is removing a barrier to the adoption of carbon credits that meet these and other quality standards. Companies that previously offset through QAS-approved credits will be in a better position to engage with their stakeholders, and DECC is to be applauded for this bold move.
Indeed, I expect the UK voluntary carbon credit market to experience a renaissance as a result of DECC's decision. As always, Carbon Clear is here to help.
Government Abandons Shunned Carbon Offset Assurance Scheme
Monday, 23 May 2011
DECC QAS, R.I.P.
Thursday, 19 May 2011
DECC Announces Fourth Carbon Budget
The 2008 Climate Change Act requires the Government to publish a series of five-year budgets that put the country on a path to achieving an 80% reduction in greenhouse gas emissions by 2050. The first Carbon Budget (2008-2012) limits greenhouse gas emissions to 3,018 million tonnes CO2 equivalent (MtCO2e) - 23% below 1990 levels. The second Carbon Budget (2013-2017) is geared to achieve a 29% emissions reduction, and the third Carbon Budget (2018-2022) put the Government on track to achieve 35% reduction below 1990 levels.
Under the Fourth Carbon Budget, which covers the period 2023-2027, total UK emissions will be only 1,950 MtCO2 - half of 1990 levels. The Government is now pushing the rest of the EU to adopt a more ambitious 30% emissions reduction target by the year 2020 - up from the current 20%.
Given the difficulty of replacing fossil fuels in the transportation sector (a topic to which we'll return in subsequent blog posts), other sectors will see disproportionate emission reductions. In particular, GHG emissions from the power sector will have to drop almost to zero. All fossil fuel-fired power plants will have to have carbon capture and storage (CCS) technology - or cease operation. Already, the 750 MW Tilbury power station is in the process of switching to 100% renewable biomass instead of coal. Their fuel pellets will come from a purpose-built plant in the southeastern United States. Imports of biomass for heat and power in the UK will likely skyrocket in this low-carbon future.
Similarly, few if any residences will be able to0 use natural gas to provide heat and hot water - renewable energy and efficiency will have to pick up the slack.
Achieving these ambitious reductions will require major structural changes in how we live, work and play. The UK Government is providing an array of carrots and sticks in the form of the EU-ETS, Carbon Reduction Commitment, feed-in-tariffs and other policies to provide incentives for organisations and individuals to reduce emissions. At Carbon Clear, we're committed to helping companies identify opportunities that arise from these shifts. Keep watching this space for more ideas and analysis.
(to the Carbon Clear Homepage)
Monday, 16 May 2011
IEMA Handbook 2nd Edition Published!
The editors, John Brady, Alison Ebbage and Ruth Lunn, wanted to perform a "root and branch" review and update of the handbook to reflect changes in environmental thinking and priorities since the first edition was released back in 2004. That's no small feat given how much the ground has shifted over the past seven years! Based on the copy that arrived on my desk the other day, I think they've done an admirable job.
One of the big shifts since 2004 has been the increased worldwide focus on climate change and sustainable energy issues. In the first edition, these topics were lumped together in a single (well-written) chapter. This time, the editors decided to create two standalone chapters on these important subjects, and also worked to weave climate change themes throughout other chapters in the Handbook.
I think this was the right choice. Aside from giving me the opportunity to author two chapters instead of one, providing separate space for each issue acknowledges that while energy and climate change are related, they are not the same thing. Energy production and consumption are major sources of greenhouse gas emissions, but so are agriculture, deforestation, and the production of industrial gases like hydro-fluorocarbons (HFCs) and sulphur hexafluoride (SF6). Separate chapters allow the editors (and author) freedom to explore the broader implications each has for environmental managers.
With the Handbook's publication, the Carbon Clear Blog will be focusing on some of the issues and themes discussed in the Climate Change and Energy chapters. Stay tuned!
Tuesday, 19 April 2011
10 Questions to Ask Your Carbon Offset Vendor
Investing in carbon offsets is an efficient and cost effective way to quantifiably reduce the environmental impact of your organization. Such investments also demonstrate a strong commitment to combating climate change. Having said that, navigating the world of carbon offsets as a novice can be overwhelming. Even as an educated buyer, market jargon persists, and new standards and offset vendors must constantly be evaluated.
To provide clarity surrounding carbon offset purchases, below are 10 questions you should ask your offset vendor prior to purchasing credits. The questions were developed by Canadian environmental organization, the David Suzuki Foundation, and can be found in their report ‘Purchasing Carbon Offsets’. In reproducing them here, I’ve provided context and/or answers to help you understand what to look for in responses.
1. What are the specific offset project type(s) in your portfolio, and where are they located? (project types refer to wind farm, methane recovery, etc.)
8. Do you use a publicly accessible registry to track and retire your offsets? If yes, list the websites. If no, how do you ensure your offsets are only sold to one buyer?
Thursday, 14 April 2011
The CDP’s Carbon Action Initiative: What you need to know
Last week the CDP (Carbon Disclosure Project) announced its new Carbon Action initiative, an initiative led by institutional investors who combined manage assets of over $7.6 trillion dollars.
The initiative is fueled by an overwhelming belief that an increasingly fossil fuel constrained economy will have immense cost and other impacts on the performance of businesses worldwide. And, the investment community wants to know that the companies they invest in are doing something to manage these impacts. The logic follows that reducing costs now and warding off future price increases will deliver greater shareholder value both immediately and in the long run.
To add to this, the signatories of the Carbon Action initiative, which include groups like CCLA Investment Management, Aviva Investors, Boston Common Asset Management, and Calvert Asset Management have said that starting in 2013, they will begin divesting in companies that do not publicly disclose reduction targets to the CDP.
Steve Waywood, Head of Sustainability at Aviva Investors, a founding supporter of Carbon Action, commented, “We believe that the external costs of greenhouse gas emissions will become internalized into company cash flows and profitability. We encourage companies to consider what actions that they can take now to reduce emissions”
Through the Carbon Action initiative, the CDP is encouraging companies to do the following:
1. Measure and report your GHG emissions
2. Make year-on-year emissions reductions
3. Identify and implement investments in GHG reduction initiatives that will have a positive return on investment
4. Publically disclose emission reduction targets
What does this mean for your business? Two things, if you are a Global 500 company, you will have already received your CDP request for information letter. If not, you may experience a trickle down effect if you work with Global 500 companies looking who will be looking for new opportunities to reduce carbon (and costs) in their supply chains.
If you need help with your CDP response, or are interested in protecting or boosting your brand reputation by making an unsolicited response, Carbon Clear can help. Visit http://www.carbon-clear.com/us/services/carbon_disclosure_project
Friday, 11 March 2011
Carbon Clarity: Another Way to Think About Offsets
I've noted many times before that companies and organisations are going beyond compliance to measure and reduce their greenhouse gas emissions, so let’s start with the organisation’s carbon footprint.
(To the Carbon Clear homepage)
Wednesday, 2 February 2011
Carbon Clarity
Climate change is one of the most important issues facing the planet, so the more people engaged in carbon management the better - so long as they're doing it right. Doing it wrong risks wasting time, energy, and money, and potentially delaying the transition to a low-carbon economy.
In this post, we'll discuss what carbon management is, what it isn't and why that difference is so important.
At Carbon Clear, carbon management is all about clarity. Carbon clarity means having the right information and using that information to make good decisions.
More specifically, we view carbon management as a systematic process to identify and address the risks and opportunities presented by climate change.
The basics of our approach are straightforward enough. As they work through the process, clients who engage our services learn:
- What is my climate change exposure?
- How will my business be affected by climate change?
- How can my business adapt to gain commercial advantage?
- Will my processes need to change in a low-carbon world?
- Are we prepared for these changes?
- What can I do now? What do I need to do?
- What do my stakeholders expect and how can I address them?
- How do I measure success?
So far, so good - nothing that should surprise anyone who has worked with us before.
But there's a difference between saying and doing. There are a lot of tools out there and a lot of specialist providers who have a hammer in search of a nail. It's the first part of the definition that gives our approach to carbon management its clarity and power.
Note in particular the use of the phrase "systematic process". At Carbon Clear we find that it is often counter-productive to pre-judge where a company's greatest exposure to climate change risks and opportunities will lie. Perhaps the greatest risk is their exposure to energy prices that incorporate a rising cost of carbon. Perhaps the risk lies in supply chain disruptions caused by increasingly severe weather. Perhaps the risk is reputational, as the news media, customers and investors punish climate laggards and reward pioneers.
Limited tools can result in limited thinking. Many larger companies already employ half-hourly energy meters and legislation like the UK's CRC Scheme means the number of meters in use is growing. Companies can therefore deploy software that enables them to track energy consumption and engage in long term energy planning and targeting. Despite their power, however, these tools are not enough. As we have pointed out before, carbon management involves people throughout the company, from energy managers (the natural users of these software tools), to the HR director, the chief financial officer, and the communications manager. Each of these players will process information in a different way and have a different definition of a successful outcome. At best, this diversity makes an energy-focused software tool a difficult sell. At worst, it potentially leaves a company blind to all the other greenhouse gas emission sources in their business and to the other ways that climate change can affect them.
Similarly, unless we understand the resources and constraints available to the company, it may be premature to specify in advance the actions they should take to tackle those risks and opportunities. Just as a physician will discuss all the options before sending a patient off to surgery, a carbon management professional should help a company understand the choices and trade-offs available to them. The universe of possibilities is vast: should they invest in energy efficiency, renewable energy, demand management, supply chain optimisation, fuel switching, improved transport management, employee and customer engagement, corporate restructuring, new product development, etc, etc...? The answer, of course, is "it depends".
And within each of these categories lies a potentially bewildering number of specific approaches. Within the category of energy efficiency should the focus be on improved metering, lights, motors, insulation, load management, user behaviour or some other solution? What's the trade-off between investing to optimise existing equipment and undertaking a retrofit before the current equipment has reached the end of its useful life? And who decides?
Carbon clarity means using clear, systematic thinking to cut through these complex variables to find the right carbon management solutions for your company. As the examples above illustrate, carbon management isn't a single tool. It isn't just a carbon footprint, and it isn't a gadget you can buy. And while carbon credits may play a role, carbon management isn't just (or even mainly) about carbon offsets.
At Carbon Clear, we're your carbon management partner. We provide carbon clarity to help you change climate change from a risk to an opportunity. And we help you choose the tools that will translate those opportunities into results.
(Carbon Clear homepage)
Thursday, 20 January 2011
Why managing your carbon impact is inevitable
I believe that every business in the UK will be managing its carbon impact in 5 years. Many companies are already doing so, but there are many that are not. Those against it usually argue that investment in non-core activities is difficult, especially in this time of fiscal austerity. While this may be an understandable response, I believe it is short-sighted. Reducing your carbon impact will save you money and strengthen your business, and the sooner you do it, the sooner you can build expertise and enjoy the benefits.
Let’s look at the business case for a moment. Carbon management consultants like us have been harping on about cost savings for years. It’s not just rhetoric, nor is it rocket science. Any organisation that can work out ways to use energy more sensibly will knock a massive chunk off its electricity, gas and fuel bills. As energy prices won’t be going anywhere but up in the future, the savings accumulate accordingly.
Then there is legislation. The coalition turned the CRC Energy Efficiency scheme into a tax as part of its Comprehensive Spending Review, with the additional tax bill for the smallest participants now estimated at over £40,000 a year from 2012. On top of that they face fines for non-compliance if they don’t accurately measure their emissions. So the better you manage your carbon, the smaller your tax bill. And it’s unlikely to stop there. A recent government consultation on corporate law and governance is the first part of the coalition’s commitment to ensure that social and environmental duties are included in company reporting.
The good news is that consumers like to see companies ‘doing their bit’. They might not want to make massive changes in their own lifestyles or pay a premium for green credentials, but they do show a preference for sustainable products and services. A 2009 Europa survey found that more than 8 in 10 EU citizens felt that a product’s impact on the environment is an important element when deciding which products to buy. Brands embracing the low-carbon agenda are associated with a ‘can do’ approach, social responsibility, and innovation.
The flip side of this is, of course, that companies not tackling their environmental impact are at risk of losing out to their more forward-thinking competitors. In a 2010 PwC survey of the FTSE 350, 85% of companies are now disclosing their carbon emissions. They need to, because ethical and environmental procurement is becoming mainstream. So even non-consumer-facing businesses are vulnerable to loss of competitiveness if they supply, for example, to a major retailer such as a supermarket, or to the public sector.
Not convinced? You won’t be alone. But in 5 years time I believe you will be at a disadvantage if you don’t take these messages seriously. I think there is a good chance you’ll wind up managing your carbon anyway, eventually. Best practice suggests adopting a low-carbon approach to build value and bring in new business today. Why wait?
Mark Chadwick is CEO of Carbon Clear, a London-based carbon management consultancy.
Friday, 7 January 2011
What’s on your plate? Agriculture, meat, and carbon
Suzy Hodgson AIEMA is a Principal Consultant and Jamal Gore MIEMA,CEnv is Managing Director at carbon management company Carbon Clear Limited.
Thursday, 6 January 2011
Carbon Neutrality: In From the Cold
- Genuine
- Additional
- Without leakage
- Permanent
- Independently verified by a third party
- Transparent (i.e. supported by publically available project documentation on an established registry)






