Why your NL business needs CO2 certificates till 2024?
What is a CO2 certificate? Why this topic is so important to The Netherlands? How much does it cost? Where, how and when should you buy it? Will there be any benefits for your business?
When was the last time you saw the Netherlands covered in snow? 20–30 years ago? Why is there hardly any snow and all we have is rain? If you haven’t thought about it, let’s do it together.
The average temperature in NL rose by more than 2 °C from 1990 to 2022. Seems such a small number, but if you look deeper: no snow in winters, unbearable heat in summer and the biggest one — the rise of water level.
Our planet is getting warmer and one of the main reasons of it is the high concentration of CO2 in our atmosphere. Greenhouse gasses like CO2 absorb heat very easily from both the Sun and the Earth’s surface. They also re-release this heat in all directions including back to Earth’s surface. And the more coal, oil, and natural gas we burn to generate electricity or to run our cars, the more CO2 will be in the air, thus the faster the global temperature will rise. To put it simple, CO2 traps heat and forms a snug heating blanket around our planet.
Sounds comfy? Not so much if we dive deeper into further effects of this warming. You see, when our planet becomes warmer, so does its seas and oceans. And water expands when it becomes warmer…
Almost a third of the Netherlands is situated below sea level. And we all know what it means if water levels continue to rise. That is why after signing the Paris agreement in 2015, The Netherlands, Norway, Singapore and China were the first countries who have started to implement significant changes to reduce carbon emission in the battle against global warming.
The Dutch government has set a goal to reduce carbon emission by 49% by 2030. Meaning, every company that produces CO2 (uses electricity or gas) will be encouraged and “forced” to become greener. One way to achieve this is by capturing the amount of CO2 they produce. Capturing? Yes, capturing.
How can be CO2 captured?
- Planting food forests — trees and mushrooms are consuming CO2 and give oxygen back to the atmosphere.
- Carbon mineralization — some minerals naturally react with CO2, turning carbon from a gas into a solid, happens very slowly, over hundreds or thousands of years.
- Direct air capture — chemical process of scrubbing carbon dioxide directly from the ambient air. Down side — expensive.
When captured, the amount of CO2 can then be officially registered as a CO2 certificate, acting as proof that this amount of CO2 has been captured.
A company can do all of that on its own or invest in projects that are already specialized in CO2 neutralization. For example, they plant the right amount of trees for the investment you make and give CO2 certificates to you.
How much are CO2 certificates?
From January 2018 CO2 certificated have raised in price by 960% from €9,70 to about €93,15 in January 2023. Will it get higher? We think, by the end of 2023 it will double. Have a look:
(tradingeconomics.com/commodity/carbon)
A lot of significant companies already have invested in neutralizing their carbon footprint: Unilever, Royal Dutch Shell, Gucci, Siemens, Novo Nordisk, Iberdrola and many more.
Sounds great! Where can I get them?
There are various government-run programs including the European Union Emissions Trading System (EU ETS) and the Dutch National Emissions Reduction Plan which allow companies to purchase carbon certificates to offset their emissions.
However, if you really want to make a more tangible difference there are various carbon offset providers in the Netherlands. These allow individuals and companies to purchase carbon certificates that originate from local projects such as renewable energy, reforestation and methane capture.
One of these local projects is brought to life by Boer-in-Natuur. They are more than just a farm. They have seeded a project in planting food forests on their land instead of regular crop farming. This is a great stimulant to biodiversity, provides healthy local products and captures large amounts of CO2. Have a look on their website to see what sustainable agriculture really means https://www.boer-in-natuur.nl/carbon-credits/
Will there be any benefits for the business?
So why should Dutch companies consider buying carbon credits? Here are just a few of the benefits:
- Meeting sustainability goals: As more and more companies set sustainability goals, buying carbon credits can help them achieve these goals by offsetting their own emissions and reducing their carbon footprint.
- Improving brand reputation: Companies that take steps to reduce their carbon footprint and support sustainable projects are often viewed more positively by consumers and stakeholders. By buying carbon credits, companies can demonstrate their commitment to sustainability and environmental conservation.
- Supporting local projects: Carbon credits can be purchased from projects all over the world, but many Dutch companies choose to purchase credits from projects within the Netherlands. This not only helps to offset their own emissions, but also supports local projects and communities.
- Compliance with regulations: In some cases, companies may be required to offset their emissions or purchase carbon credits in order to comply with regulations. By purchasing carbon credits, companies can ensure they are meeting these requirements.
- Cost-effective solution: While some sustainable initiatives can be costly, buying carbon credits can be a cost-effective way for companies to offset their emissions and make a positive impact on the environment.
Overall, buying carbon credits can be a win-win for Dutch companies. Not only do they help to offset emissions and reduce the overall amount of greenhouse gases in the atmosphere, but they also support sustainable projects, improve brand reputation, and can even be a cost-effective solution.
So next time your company is looking for ways to reduce its carbon footprint, consider investing in carbon credits — it’s a small step that can make a big impact!
