More of Everything, Everywhere, Now
Most of the UN’s International Panel on Climate Change (IPCC) scientists now believe we will surpass 2.5 degrees of global warming this century.
The issue we face is that a ceiling exists over how much money governments can unlock to finance climate action. We need more finance from everywhere and now.
Corporate climate action is what will make or break meeting global climate targets. We need to be protecting and restoring carbon sinks. We need to fund effective adaptation to climate change. We need to remove historical emissions.
Companies today need to reduce their own emissions, buy removals, buy further avoided emissions, in and outside their supply chains, and support local areas in adapting – all as part of a clear strategy on their path to Net Zero.
Corporate leaders with this ambition will find carbon credits help them to:
- Set more ambitious net zero targets, while meeting their recognised sustainability claims.
- Cost their negative externalities (which we need much more of across the global financial system!).
- Agree risk management techniques for shareholders’ benefit.
- Demonstrate to stakeholders that they are taking positive action today, on all fronts.
- And in some jurisdictions, even supplement their carbon tax.
Emissions and sustainability previously lived under the banner of ESG with the purchase of credits undertaken by procurement. Now, a credible and actionable Net Zero target is becoming a required activity rather than an optional strategy.
Pressure from consumers and supply chain partners in the business-to-business market is leading clients to ask for emission disclosures, Net Zero targets and sustainability policies as a requirement to contract.
At Carbonplace, we welcome all incentives that encourage this yes, and approach to addressing climate change. Our role is to help companies access the market while giving users full transparency and control over their carbon portfolio.
So, let’s do more of everything, everywhere, and now to secure it!
Taking Back Control: Financing Climate Action with Trust and Transparency
The climate crisis is a challenge we can’t ignore, and the need for swift, decisive action is becoming increasingly urgent.
One powerful tool at our disposal is carbon markets, capable of channelling corporate finance into projects that generate tangible climate benefits when operating with integrity.
But both trust and transparency have been lacking. In the past, carbon markets have been held back by their complex and fragmented nature.
But things are looking up. The market is reaching an inflection point, with the emergence of universal standards like IC-VCM’s Core Carbon Principles (CCPs) and significant advancements in the data, information and tools available to market participants.
At this pivotal time, what is now needed is the missing piece of infrastructure.
This is exactly why major banks joined forces in 2021, leading to the launch of Carbonplace in 2023 — a platform for companies to hold, manage, buy, sell, and retire their carbon credits using secure bank-grade infrastructure.
As the only carbon credit management platform developed and powered by the world’s leading banks, Carbonplace uniquely bridges the infrastructure gap in the market by leveraging the inherent trust, transparency, and security of the financial services industry.
With trust at the centre of every transaction, Carbonplace gives users full control to effortlessly manage the entire carbon credit lifecycle from inception to retirement on one simple dashboard, removing the need to rely on third parties.
We must leverage every available tool as we strive towards net zero.
With the opportunity to invest in climate solutions with security and transparency, there’s no better time to start.
Take control of your climate action journey today.
When procuring carbon credits, why pull all your credits from the same basket?
Like the time-old investment strategy says, diversify your portfolio to diminish risk. And the same could not be truer for carbon credit procurement.
High-integrity carbon credits are an essential part of a robust net zero strategy being driven by direct emission reductions. But companies are unnecessarily walking into a reputational minefield by procuring credits in the way they are now.
Given the many types of high integrity carbon credits available now, the best way for companies to reduce their risk and balance price, scalability and durability is with a diverse carbon portfolio.
Balancing investments across different projects can ensure a company is resilient to the kinds of market fluctuations we have seen over the past year, and any technological or project uncertainties.
In any emerging industry, it’s challenging to predict which technologies will become the most cost-effective. But by initially investing in a wide range of project types and then actively responding to changing trends, buyers can have the flexibility to shift their portfolio towards the most promising technologies as they emerge.
Thinking more broadly, price is often the most significant barrier to entry for many companies.
By diversifying across project types with a range of durabilities, from nature-based solutions to direct air capture, companies can achieve a blended price point that is far more accessible for the average corporation. As a result, more companies can buy in, and the market can scale faster, which means more climate action happening today.
The bottom line is CSOs and moreover CFOs, need to think of integrating a diverse portfolio of carbon credits into their business’s net zero strategy as an essential exercise in risk management for the benefit of their corporate reputation, reporting requirements, and wider market resilience.
Carbonplace makes this possible in three ways:
- Providing the ability to assess, trade and manage diverse portfolios of carbon credits on one unified platform
- Offering extensive price transparency and detailed project information to help buyers build a diverse portfolio of carbon credits
- Facilitating easy auditing and reporting to further reduce risk and ensure compliance with evolving regulatory landscape
By leveraging the tools and approaches of more mature financial markets, carbon credit portfolios can play a vital role in helping corporations future-proof their businesses, achieve net zero goals and accelerate climate action.