Carbon Mitigation Actions; For The Planet, And for the Pocket
Machines are built to last !
As a consumer, I expect when I invest in an appliance or a tool, it will keep working for a reasonably long time to bring a return. But to keep any machinery in good working condition, regular maintenance is needed to mitigate wear and tear. Planet earth is similar. Our fossil fuel-driven logistics systems have been working the earth hard, and there is just as much need for actions to mitigate the wear and tear that is being done and to ensure our home planet can continue to sustain us.
The logistics industry is one of the largest carbon emitters in today’s business world, and therefore having a carbon mitigation plan is an important step for logistics companies to take. This is not just for meeting a target – it is for the health of our planet.
Often, a company’s carbon mitigation plan includes a “carbon neutral” element, which is to admit that the company’s processes will still be producing carbon, but it will neutralize the carbon footprint by increasing carbon storage or by helping others to reduce their carbon output through carbon markets. According to a recent SGInnovate webinar, the voluntary carbon market is worth about $5.5 billion a year. More importantly, this same voluntary market is projected to increase to $50 billion by 2030.
There are carbon mitigation projects all over the world and organizations like Verra and Gold Standard provide carbon reduction or storage projects to help companies achieve their mitigation goals. Projects such as natural landscape restoration (like reforestation or mangrove restoration) are much touted as beneficial in terms of taking carbon out of the environment.
Another way to reach carbon neutrality is to lower the amount of carbon emitted by investing in alternative energy solutions. For instance, there is a geothermal energy generation project in the Salavatli region of southwest Turkey that generates energy for the electricity grid and thereby replaces energy generated by fossil fuels.
Beyond Your Own Emissions
For logistics companies, if you have activated a successful switch to sustainable vehicles yourself and are ahead of your industry’s regulated permissible carbon credit level, then you are likely to see big opportunities in the next 30 years to make money from your internal investments. You could play the important role of selling carbon credits to companies that need to mitigate their emissions. Better yet, these could include your less efficient competitors! A case in point is Tesla, the electric car manufacturer, which reported carbon credit sales of $518 million in the first quarter of 2021, with the majority of purchases coming from other automakers!
The lesson here is it pays to act fast to get green. Mitigating your carbon is never as good as getting rid of it from your own systems to begin with. Work today to get down your carbon emissions — for a cleaner, and possibly profitable, future.