{"id":24683,"date":"2023-06-07T11:18:39","date_gmt":"2023-06-07T15:18:39","guid":{"rendered":"https:\/\/quantumlifecycle.com\/?p=24683"},"modified":"2023-09-06T08:38:00","modified_gmt":"2023-09-06T12:38:00","slug":"understanding-carbon-credits","status":"publish","type":"post","link":"https:\/\/quantumlifecycle.com\/en_CA\/blog\/understanding-carbon-credits\/","title":{"rendered":"Understanding Carbon Credits"},"content":{"rendered":"<p>Businesses of all sizes and scope are using <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/making-sense-of-carbon-credits\/\">carbon credits<\/a> as a component of their ESG strategy. Yet, there\u2019s still confusion about what qualifies as carbon credits and how the carbon market is run. Here\u2019s everything your company should know before purchasing carbon credits.<\/p>\n<h2>What exactly is a carbon credit?<\/h2>\n<p>A carbon credit represents ownership of one metric tonne of CO2 that\u2019s been removed or prevented from entering the atmosphere. There are core carbon principles which state that the carbon must be real, measurable, permanent, and additional. This concept of additionality is especially important \u2013 it means that the activity for which the credit is awarded must go above and beyond normal business activities. In other words, if a company is legally required to do reclamation activities after removing trees, it would not qualify for carbon credits since it was already a mandatory activity.<\/p>\n<p>Additionality should be considered before a project starts, instead of completing it and attempting to claim credits afterwards. It must also be verified through a third party. There are four main registries known for maintaining high standards: American Carbon Registry, Vera ACR, Climate Action Reserve (CAR), and Gold Standard. Before purchasing carbon credits, however, it\u2019s important to know which market applies to your business.<\/p>\n<h2>What are the two types of carbon markets?<\/h2>\n<p>One area of confusion surrounding carbon credits stems from the fact that there are two carbon markets, which is an important detail most people are unaware of. First, there\u2019s a mandatory (<a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/what-are-the-benefits-of-quantums-customer-portal\/\">compliance<\/a>) carbon market, which is set up by government regulators to keep large emitters of carbon at or under a certain threshold. Participation is required for large emitters. This can be at a state or federal level, but credits are non-transferable. A compliance credit in the system in British Columbia could not be used for the federal system, for example.<\/p>\n<p>On the other hand, there is also a voluntary market, which is where some corporations, small businesses, and even individuals choose to purchase carbon credits. Often they do so to work towards net zero targets or similar ESG goals and claims. This voluntary market is growing, but as of now, it\u2019s a bit of a \u201cwild west,\u201d where greenwashing can take place, which is the recent trend in which companies create the false impression that they are more environmentally friendly than they can prove. While there are standards in place to help minimize the issue, the space isn\u2019t as heavily regulated as the mandatory market. It\u2019s therefore critical to partner with trusted companies when pursuing <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/honoring-our-commitment-to-sustainability-a-look-into-quantums-earth-day-events-for-2023\/\">ESG initiatives<\/a> related to <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/4-takeaways-from-cop27\/\">carbon emissions<\/a> reduction.<\/p>\n<h2>How do carbon credits fit into the IT asset disposition space?<\/h2>\n<p>While some <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/quantums-value-during-a-recession\/\">IT asset disposition<\/a> companies sell carbon credits, others (including Quantum) do not.\u00a0 It\u2019s our belief that our industry doesn\u2019t satisfy the additionality requirement, since <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/ghg-reduction-how-quantum-can-help-you-reach-your-sustainability-goals-while-avoiding-greenwashing\/\">reuse<\/a> and <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/6-considerations-corporate-asset-disposition-quick-guide-professionals\/\">recycling<\/a> of electronics has been \u201cbusiness as usual\u201d for decades. Therefore, there is no substantive argument that ITAD would have happened without carbon credits being involved. Reuse and recycling of electronics certainly benefit the environment and <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/the-virtues-of-reuse-over-recycling\/\">reduce<\/a> emissions, but these are practices that should be standard practices in businesses and therefore do not meet the \u201cabove and beyond\u201d factor of additionality.<\/p>\n<h2>Why is it important to purchase legitimate carbon credits?<\/h2>\n<p>Does it really matter if your company purchases illegitimate carbon credits? After all, if there\u2019s a less reputable registry that has looser standards, is there any harm in purchasing credits they\u2019ve verified? In short, yes.<\/p>\n<p>Failing to practice due diligence when purchasing carbon credits is risky for several reasons. For one, your company could be wasting money on credits that have no actual value. This is especially true in the voluntary market, which is loosely regulated compared to the mandatory market. For another, illegitimate carbon credits put your business at risk for reputational and legal consequences. Some companies have been sued by certain regulatory bodies for dishonest reporting, for example. If you\u2019re making specific ESG claims, it\u2019s important to back them with legitimate actions, which includes valid carbon credits.<\/p>\n<h2>What are some best practices for purchasing carbon credits?<\/h2>\n<p>Although it can be challenging to navigate the carbon market at first, you can minimize risk with a thoughtful, informed approach. When pursuing net zero targets and other ESG goals, start internally. Carbon credits can be challenging because it\u2019s not always clear within an organization who should be responsible for them. In larger corporations, there\u2019s often an appointed ESG or sustainability team to handle it. In smaller companies, it may fall on someone from operations or finance. Ideally, there should be multiple decision makers involved with carbon credit practices, and everyone should become educated on <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/how-to-avoid-fraud-with-better-it-security-and-data-destruction-practices\/\">best practices<\/a>.<\/p>\n<p>Moreover, you can\u2019t reduce carbon unless you know where you stand with emissions in the first place. Seek ways to reduce them as much as possible internally first. Then, focus on offsetting the hard-to-abate emissions through carbon credits.<\/p>\n<p>Finally, companies must be especially careful with voluntary carbon credits. When you do choose to monetize emission reductions, make sure they meet the additionality requirement, and check that a reputable registry is used for verification. A best practice is to purchase carbon credits verified by one of the four internationally reputable registries: American Carbon Registry, Vera ACR, Climate Action Reserve (CAR), and Gold Standard.<\/p>\n<p>Companies can trust Quantum to support their ESG initiatives without greenwashing through ITAD and <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/the-future-of-electronic-waste-innovations-in-e-waste-recycling-technologies\/\">e-waste recycling<\/a> activities, as well as detailed and accurate GHG reduction reporting. Find out more about our services for businesses <a href=\"https:\/\/quantumlifecycle.com\/en_CA\/inquiry\/\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesses of all sizes and scope are using carbon credits as a component of their ESG strategy. Yet, there\u2019s still confusion about&#8230;<\/p>\n","protected":false},"author":23,"featured_media":24684,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[76],"tags":[],"acf":[],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding Carbon Credits - Quantum | ITAD &amp; E-Waste Recycling<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quantumlifecycle.com\/en_CA\/blog\/understanding-carbon-credits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding Carbon Credits - Quantum | ITAD &amp; E-Waste Recycling\" \/>\n<meta property=\"og:description\" content=\"Businesses of all sizes and scope are using carbon credits as a component of their ESG strategy. 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