What on Earth #2 ??? February: carbon prices, eco-scores, consumer sentiment

February 2023 | The price of carbon hits a record high of more than €100 per ton on February 21 (from €64 in September 2022). The world's largest carbon offsetting company, used by Gucci, is at the center of an investigation for "phantom carbon credits." The Italian MISE has launched a new draft decree called?MASE Sostenibilità. Meanwhile, the French "Eco-Score" rating system for clothing is facing criticism due to its limited scope.?Many companies are exploring?alternatives to traditional plastics?& more in this edition.

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The price of carbon in Europe?has hit a record high?of more than €100 per ton on February 21, as the economy rebounds from an energy crisis. Prior to this surge, the?carbon price was?around €64 per metric ton in September 2022.

The rising carbon price is expected to push companies to reduce their carbon footprint and increase investment in cleaner technology. The EU is planning to tighten the rules governing the carbon market from 2026 and align them with the bloc's goal of reaching net-zero emissions by 2050.

TOP NEWS

The Kariba forest protection project in Zimbabwe, developed by South Pole Group, turned out to generate more carbon emissions. The project was used to offset the carbon emissions of brands such as Gucci, Volkswagen, Greenchoice, and McKinsey, but only on paper. The world's largest carbon trader sold more carbon credits than the project produced between 2011 and 2021, leading to extra revenue for South Pole. Internal documents reveal that over 90% of all rainforest offset credits are "phantom credits."

While South Pole acknowledges the overestimation, it denies that it has harmed the climate. Despite this, the carbon trader group will release all financial results of the Kariba project soon, while continuing to issue carbon credits at a slower rate.

New regulations in?Europe and the US?require leading brands to disclose information on the environmental impact of their operations for the first time. Until now, sustainability efforts were viewed by retail executives as a lose-lose scenario.

However,?recent studies?show that consumers are shifting their spending toward products with ESG-related claims, and are willing to pay extra for sustainable products. Meanwhile, many retail executives are out of touch with what consumers care about most, indicating that apparel companies have neglected changing consumer behavior and interests and will soon need to make adjustments.

The US Federal Trade Commission (FTC)?has extended the deadline for public comment on potential updates to its Green Guides, which provide guidance on environmental marketing claims. The FTC is seeking input on whether the guides need to be revised to reflect changes in the marketplace, such as the increasing use of carbon offsets in marketing.

Meanwhile, the European Union is planning to impose penalties on companies that make false environmental claims about their products or services under a?new EU law draft. The legislation is aimed at combating greenwashing and increasing transparency in the market. The proposed rules will cover a range of sectors, from energy to consumer goods, and will apply across the EU.

UPDATES & REGULATIONS

The Italian Ministry of Economic Development (MISE) has launched a new draft decree called?MASE Sostenibilità?to promote sustainable fashion in the country. The project aims to encourage sustainable production practices in the fashion industry, including the use of eco-friendly materials, reduction of waste, and energy efficiency. The decree applies to post-consumer urban waste and concerns products that are placed on the market in Italy and not textile products intended for export.

Meanwhile, the French "Eco-Score" rating system for clothing, which is designed to inform consumers about the environmental impact of products, is facing criticism due to its limited scope.?Critics argue that the score, which only takes into account the manufacturing process and not the entire lifecycle of a product, could be misleading and ultimately ineffective in promoting sustainability.?Nevertheless, the French Ministry of the Environment confirms moving forward with the Eco-Score which will become mandatory from 2024.

The "Trashion" report by?Changing Markets Foundation?reveals how fast fashion brands are contributing to plastic pollution, with large amounts of non-recyclable synthetic fibers being produced each year.

The report highlights the role of major fashion companies like H&M, Zara, and Nike in promoting fast fashion and using synthetic fibers, despite the availability of eco-friendly alternatives. "Currently, over two-thirds (69%) of textiles are made from plastic, and this is expected to grow to 73% by 2030." This calls for urgent action to reduce the use of synthetic fibers and improve recycling efforts in the fashion industry.

Luxury fashion brand Gucci and parent company Kering have launched a new?circularity hub?in Milan, Italy as part of their sustainable manufacturing push, aimed at promoting circularity practices in the fashion industry. The hub will provide guidance and resources for brands to create and adopt sustainable practices.

This move comes at a time when companies are facing increasing pressure to reduce their environmental impact, and packaging is one aspect of sustainability that is being addressed. Many companies are exploring?alternatives to traditional plastics?as consumers become more conscious of the environmental impact of their packaging choices.

EVENTS NOT TO MISS

GIF OF THE?MONTH

That's all for this month.

Have a good day on planet Earth ??,