12 July '24: What's next after climate offsetting ban call, why businesses are under-promoting sustainability, the UK's climate priorities and more.

What's next after ‘bewildering’ climate offsetting ban call?

• Over 50 NGOs, including Oxfam, Greenpeace, and Amnesty International, signed an open letter criticising carbon offsetting.
• The letter argues that carbon offsetting delays climate action, lacks credibility, and widens the climate funding gap.
• Some sustainability executives are bewildered by the letter, while others agree with its concerns.
• The debate over carbon offsetting continues, with differing opinions on its effectiveness and role in climate action. Read more.

What's our take?

Dave Rouse , CEO at CarbonClick says: "We wholeheartedly agree that reducing emissions at the source must be the primary focus of any climate action strategy. However, dismissing the role of carbon offsets entirely is shortsighted and ignores the urgency of the climate crisis. We simply do not have the luxury of unlimited time to decarbonise our global economy.

A well-regulated voluntary carbon market, operating under a strict framework, can complement reduction efforts, not replace them. This framework must prioritise high-quality projects that deliver verifiable carbon reductions and co-benefits like biodiversity protection and community development.?

Studies have shown that companies engaging in carbon offsetting are also more likely to invest in emissions reduction initiatives and at a faster pace. This demonstrates that offsetting can be a catalyst for broader climate action, and isn’t a 'get out of jail free card’ for everyone.

Carbon finance also plays a critical role in protecting vital ecosystems like rainforests. Reducing emissions isn’t our only task at hand. We also have to undo the damage we have done to our ecosystems to improve Earth’s future outlook. Without this funding, massive areas of rainforest and other habitats risk being converted to destructive land uses, exacerbating climate change and biodiversity loss.?

The reality is that decarbonising complex supply chains and scaling emerging technologies takes time. We cannot afford to ignore any tool in our arsenal, including carbon offsets, as we race against the clock to address this existential threat.

Instead of engaging in divisive debates, let's focus on collaboration and innovation to build trust and confidence in the voluntary carbon market. By working together to develop robust and stringent frameworks and methodologies for high-quality carbon offsets, we can harness the full potential of this market to drive meaningful climate action that goes hand-in-hand with emissions reduction."

Defra reveals Labour Government’s five key climate and environmental policy priorities

“The challenges we face are significant but together we will bring about the change we all want to see,” said Steve Reed, Secretary of State for the Environment, Food & Rural Affairs.

• The UK Department for Environment, Food & Rural Affairs (Defra) has announced five main policy priorities under the new Labour Government.
• The priorities include cleaning up rivers, lakes, and seas, moving towards a zero-waste economy, supporting farmers, ensuring nature's recovery, and protecting communities from flooding.
• The UK faces challenges in biodiversity, climate adaptation, and food security.
• The UK Corporate Leaders Group (CLG UK) has published a policy briefing outlining how the government can support businesses in accelerating climate action.
• CLG UK's recommendations include maximizing offshore wind, ending new oil and gas projects, investing in the electricity grid, and promoting clean energy technologies.

Read more.

The World’s Airlines Push Back On Some Government Environmental Moves

IATA director general, Willie Walsh, highlighted a number of other challenges that the airline industry was confronting on a united front—many of which add significant costs—while operating on “wafer thin” margins.

• IATA members remain committed to achieving net zero carbon by 2050.
• There are differences in opinion and confidence levels on sustainability targets among IATA members.
• IATA wants governments to focus on policy measures that can boost SAF production.
• IATA said it would establish a SAF registry, scheduled to launch in the first quarter of 2025.
• Lufthansa announced it would introduce an environmental cost surcharge on some of its fares to help offset the growing costs of complying with European environmental rules.

Read more.

Greenwashing fears: Businesses wary of ‘over-promoting’ sustainability progress

• Two-thirds of large businesses in the UK and USA are likely under-promoting their sustainability progress due to greenwashing fears.
• Most companies choose enhanced annual data disclosures over flashy PR claims.
• Only 5% of environmental claims made by the firms were not backed up by data.
• The UK's Competition and Markets Authority is reviewing environmental claims made by fashion brands and consumer goods firms.
• The EU is implementing a directive banning misleading, vague, and/or overstated green claims in all consumer-facing communications.

“By being “cautious”, businesses may well navigate “mounting pressure to avoid greenwashing” and the related regulatory risks. But they could also deter ESG-minded investors and customers. Moreover, the sharing of successful projects can empower other organisations to implement their own – without examples to follow, some businesses find it challenging to build a case to act,” said Dr. Lucy Walton, chief executive of Connected Impact.

Read more.

Sustainable carbon credits strategy for the hospitality industry

• The hospitality industry needs to develop a comprehensive ESG strategy to tackle its carbon footprint.
• Carbon offsetting is a key component of these strategies, addressing emissions from real estate development and operations.
• The cost of carbon credits varies depending on market dynamics, project type, and certification standards.
• The hospitality industry is advised to focus on significant emission reductions through innovative technologies and sustainable practices, in addition to carbon offsetting.

Read more .

Helsinki Cuts Carbon Emissions By Almost Two Thirds, New Figures Show

“Local leaders have a big role in sustainability and should take advantage of all the powers they have as local leaders. But to get the best results, you do need the European, national and local leaders pushing in the same direction,” said Anni Sinnem?ki, deputy mayor of Helsinki.

• Helsinki has reduced carbon emissions per capita by 60% since 1990.
• Emissions fell dramatically across all indicators in 2023, except for transport.
• The decommissioning of the Hanasaari coal-fired power plant has been a key factor in reducing emissions.
• The city aims to be carbon neutral by 2030.
• Helsinki is focusing on reducing emissions from transport, which remains the largest source of emissions.
• The city is also looking at ways to reduce "Scope 3" emissions, which are not directly generated in the city but still contribute to overall emissions.

Read more.