Europe’s Level(s) initiative introduces advanced ESG criteria to allow better assessment of new and retrofitted buildings. These have been developed to support green public procurement policies and the construction sector’s sustainable financing. One of the goals of this initiative is to harmonize the vocabulary around building sustainability, as well as the methodology for calculating buildings’ carbon footprint. This footprint, which indicates global warming contribution potential, is measured in CO2 equivalent units per indoor surface unit, in order to assess potential emissions reduction and offsetting plans along a 50-year reference period. ESG criteria standardization   This political initiative applies the principles of the circular economy and life cycle analysis to buildings, whether residential or commercial, and whether existing, retrofitted or new. Level(s) is not a certification system, but provides a limited framework of parameters surrounding the main aspects of the sustainability of a construction project, with the purpose of standardizing the calculation methodology and facilitating the verification or certification of results by third parties. Spain’s Institute of Construction Technology (ITeC) organized an informational event on February 23 2022, attended by ClimateTrade, to explore the meaning of the Level(s) building sustainability assessment and measurement indicators. The carbon footprint of buildings The carbon footprint indicator measures the greenhouse gas (GHG) emissions associated with a building at different phases along its life cycle. As such, it measures the building’s contribution to the Earth’s global warming and the effects of climate change. This indicator takes into account the life cycle from “cradle” (the extraction of raw materials used to build the building) to “grave” (the demolition of the building and approach to reusing, recycling and disposing of materials). This process is sometimes called carbon footprint assessment or life cycle carbon measurement. More on this topic: Real estate sector begins to devalue unsustainable buildings  Net Zero: From aspiration to auditable strategy Green public procurement Environmental criteria are starting to be integrated into European administrations’ procurement processes. Basic sustainability, carbon impact measurement, materials, water, health comfort and climate change indicators along a building’s life cycle have become selection criteria for public procurement and assessment criteria for the valuation of public funds’ real estate portfolios. Let’s not forget that Europe’s buildings are responsible for: 1/2 of all materials extraction 1/2 of total energy consumption 1/3 of water consumption  1/3 of waste generation  ITeC-ClimateTrade partnership Since 2020, ITeC and ClimateTrade have been developing an innovative digital solution to simplify the work of public and private, residential and commercial building managers: in their asset management activities, these professionals receive the carbon footprint of their buildings at any stage in their life cycle and offset it in part or entirely thanks to a digital connection to the ClimateTrade marketplace. This innovation presents building companies, promoters, real estate managers and investment companies with an advanced digital service for the offsetting of CO2 emissions as calculated by ITeC’s software, offering maximum accuracy and traceability in transactions for carbon-neutral certification. This is an added-value service for compliance and CSR managers, making the work of semi-automating mandatory sustainability reports easier. It also involves a quality improvement in the sector’s digitization, awarding it more transparency around environmental, social and governance responsibility for the benefit of all its stakeholders. Need more information? Contact our experts. Article written by Francisco Martín, Head of Engineering and International Key Accounts Manager at ClimateTrade.

Confused about the EU Carbon Border Adjustment Mechanism? We tell you everything you need to know in this article.  (Edit: this article has now been updated in our 2023 version: How the EU’s Carbon Border Adjustment Mechanism – CBAM is Evolving) In a bid to accelerate European decarbonisation and meet the EU’s target to cut emissions by 55% in 2030 compared to 1990 levels, the European Commission has proposed several measures to incentivize producers to pollute less and remain on EU soil. One of them is the Carbon Border Adjustment Mechanism, which would place a carbon tariff on electricity, cement, aluminium, fertilizer and iron and steel products imported from outside the EU, thus leveling the playing field for European producers and avoiding “carbon leakage”. How would it be priced? The price of the tariff would depend on the amount of emissions generated by the product and on the price difference between carbon in the EU and in the country or region the product comes from. It would be paid by EU importers of non-EU products. It is initially focused on direct emissions from production (scope 1), but could be extended to scopes 2 and 3 after a transition period. When would it be implemented? The Carbon Border Adjustment Mechanism would come into force in 2026 after a three-year transition (but proposed changes would move this date forward to 2025). The implementation of this mechanism would coincide with the phasing out of free allowances under the EU ETS, meaning that EU polluters would be forced to truly reduce or offset emissions, since moving production elsewhere would not spare them from the carbon price. Who would be most impacted? Within the EU, Bulgaria, Ireland and Greece are the countries most reliant on non-EU imports in sectors included in the mechanism: if it were implemented today, more than 50% of their imports would be subjected to the tariff. In Spain, this number would be close to 40%.  Research suggests that the majority of products included in the Carbon Border Adjustment Mechanism come from Russia, Turkey, the UK and China. Countries that have their own carbon price in place could be partially exempted from the mechanism, as importers would be able to deduct the exporting country’s carbon tax from the EU tariff. These include the UK, China and South Korea, though the level of exemption would depend on the carbon tax in place and the sectors covered. What has been the global reaction? Several countries have criticized the EU proposal, including Russia, India, Brazil and China, and some have threatened to denounce it to the World Trade Organization, which could lead to litigation. Some European industry groups have argued that the legislation would undermine the competitiveness of EU companies. The proposal was announced in July 2021, and is currently being debated at the European Parliament. Interestingly, the proposed changes would make the Carbon Border Adjustment Mechanism more radical, with an earlier implementation date and more products included in the scheme. The proposal now has to be debated among member states.  How can ClimateTrade help? As a European-based blockchain marketplace for climate, ClimateTrade is deeply connected with the EU carbon market. Contact our team if you need help to understand how this measure would affect your company.

The European Union Emissions Trading Scheme (EU ETS) is the continent’s main tool for reducing its greenhouse gas emissions. Learn how it works and why it is changing as part of the European Green Deal. The EU ETS was launched in 2005 and currently accounts for more than three-quarters of international carbon trading, making it the world’s largest carbon market. It covers specific gases and sectors where emissions can be accurately calculated: electricity and heat generation, energy-intensive industry sectors including oil refineries, steel works, and production of iron, aluminium, metals, cement, lime, glass, ceramics, pulp, paper, cardboard, acids and bulk organic chemicals, and commercial aviation within the European Economic Area. How does the EU ETS work The system works on a cap and trade basis, meaning that organizations are only allowed to emit a certain amount of emissions, past which they need to purchase emissions allowances from others that haven’t met their emissions limits. Each allowance is equivalent to one ton of carbon dioxide (CO2), the most common greenhouse gas, and companies can trade allowances (also called EUA) with each other according to their needs. If we assume that the limit is set at 10 tons of CO2 (10tCO2) and a company only emits 6tCO2 in a given year, it can either keep the remaining 4tCO2 for its future needs, or sell it at the end of the year to companies that need more than their allocated 10tCO2. At the end of each year, companies must have acquired enough allowances to cover all  their emissions, or they may be subject to heavy penalties. How much do allowances (EUA) cost The price of a ton of CO2 is currently about €80, having more than doubled in the past year. This price is expected to rise exponentially in the coming years as countries prepare to meet their 2030 targets. According to the Carbon Tracker Initiative, if the European Union’s emissions are to remain in line with international targets for preventing climate change, the price of CO2 emissions will have to rise to redirect public and private investment towards production models that help decarbonize the economy. Revision of the EU ETS As part of the European Green Deal being implemented within the EU to reach climate neutrality by 2050, the EU ETS is being revised to accelerate the transition. In order to meet the EU’s 2030 decarbonization targets, the sectors covered by the EU ETS need to cut their emissions by 43% compared to 2005 levels. In the next 10 years, emissions allowances under the scheme will decrease at a rate of 2.2% per year, compared to 1.74% before. Free allocations (the authorization to emit a certain amount of emissions without having to pay for allowances) will continue until 2030, with a distinction for sectors identified as most at risk of relocating production overseas, particularly manufacturing. Companies in this sector will continue to receive free allocations to avoid their relocation to countries where emissions are cheaper. Meanwhile, for other sectors, free allocations will be phased out after 2026 from a maximum of 30% to 0 in 2030. Other measures are also being considered to avoid so-called “carbon leakage”, whereby companies stop emitting within the EU but simply move their carbon emissions elsewhere. One of these measures is the Carbon Border Adjustment Mechanism. How to sell or buy CO2 emission rights ClimateTrade has a qualified and experienced team that operates with a broad base of industrial partners. We provide information, knowledge, and guidance to access markets for Emission Allowances (EUAs), Carbon Credits (CERs), Reduction Units (ERUs) and Voluntary Reductions (VERs) in a simple, equitable and efficient way. For further information on this service, please contact us.

Events are an important part of industry collaboration, but they come with a significant CO2 emissions footprint. Here is our guide to make your events carbon-neutral. The Meetings, Incentives, Congress and Events (MICE) sector has been through a lot in recent months. As the pandemic hit and lockdowns were implemented, almost all events had to move from in-person to online. In the past year, mass Covid-19 vaccinations helped the revival of physical gatherings, but travel and agglomeration rules remain very volatile. It is a tumultuous time for the industry, but that shouldn’t spare event organizers from having to reduce the environmental impact of their gatherings. As an example, the 2018 UN Climate Change Conference is estimated to have emitted around 55,000 tons of CO2, not counting the travel emissions from its more than 30,000 participants. As with every other sector, scrutiny is growing around the climate strategy of companies, and MICE professionals should also start moving toward carbon neutrality. Luckily, there are now many tools available to help calculate, reduce and offset the carbon footprint of events.   Calculate CO2 emissions There are four main areas to take into account in calculating the emissions associated with an event: travel, accommodation, venue and food.  How far do your speakers and attendees have to travel to come to your event, and how will they travel? To calculate GHG emissions from travel, you can divide your attendees in different categories: long-haul flight, short flight, bus, train or car ride, and count emissions based on the number of kilometres traveled. According to some estimations, travel can represent up to three quarters of an event’s carbon footprint, so this is the most important culprit. Then, it is time to look at accommodation for your event participants. Most people stay in hotels, but there are some differences in carbon emissions depending on the classification of hotels (a 5-star hotel tends to have a larger footprint than a 1-star hotel). Luckily, the hotel sector has made significant improvements in terms of energy efficiency: according to the Cornell Hotel Sustainability Benchmarking Index 2021, GHG intensity per square meter in hotels worldwide decreased by more than 6% between 2017 and 2019. But this is still an important element in the carbon footprint of events. The third question is: where are you having your event? A venue’s carbon footprint depends on its size, energy consumption and type of electricity it uses. Ask your venue provider about the place’s ratio of conventional versus renewable energy sources, and make sure you consider the season of your event when calculating energy use (winter and summer are generally more energy-intensive due to heating and cooling necessities). Last but not least, what kind of food are you serving? Animal products (particularly beef) have a larger carbon footprint than plant-based foods. On the other hand, buffets tend to lead to a lot more food waste than plated meals, which also impacts GHG emissions.   Reduce your footprint Now that you know the main culprits in the carbon footprint of events, it is time to look at ways to reduce it.  Considering the weight of travel in an event’s overall carbon footprint, it might be a good idea to consider a hybrid model, whereby most speakers and a small audience are present physically, but everything is available online to those who want to participate from home. This will not only reduce your carbon bill, but also tremendously increase your reach. Many events have experimented with this model successfully since the pandemic. Making your event hybrid also reduces the carbon footprint from accommodation, venue and food, since you will need to cater for fewer people. But you might also look for sustainable venues that use renewable electricity and implement energy efficiency measures. Finally, a plant-based menu is the best way to cut the emissions from the food you serve.    Offset emissions and contribute to projects worldwide But no matter how much you try to reduce the environmental impact of your event, it is likely that some emissions will be impossible to avoid. In order to propose a truly carbon-neutral event, you will also need to offset your remaining carbon emissions by financing mitigation initiatives such as reforestation projects or new renewable energy developments. ClimateTrade is a strategic carbon neutrality partner for the MICE sector. For instance, we recently collaborated with Algorand to offset the carbon footprint of the Decipher event in Miami, thanks to the offsetting of 627 tons of CO2 via reforestation projects in El Salvador, Colombia and the US on the ClimateTrade digital marketplace. The amount of emissions included in the calculation stemmed from the flights (international and national) of 450 attendants, road transportation, two nights’ accommodation, the materials used for the exhibition spaces, wifi devices, electricity consumption, catering and waste generated. Another example of event management best practice is that of the business association LIDE in Argentina. LIDE is compensating the carbon footprint of all its events and webinars since 2020 through the purchase of carbon credits via ClimateTrade. By doing so, it is contributing to various reforestation projects in Latin America.   ClimateTrade in the MICE sector  ClimateTrade is also developing strategic alliances with the MICE sector and the business travel industry. In May 2021, the Spanish Association of Business Travel Agencies (GEBTA), started offering new premium services to its end clients, thanks to ClimateTrade technology. Now, corporations committed to decarbonizing their activities and operations, can begin offsetting the carbon footprint of their business trips and MICE activities. This agreement marked a shift in corporate travel agencies’ corporate social responsibility strategies: from simply offering sustainability consulting services to their clients, that have begun implementing practical tools to enable them to offset their emissions on every trip. By doing so, these agencies are reinforcing their own sustainability commitments, and powering their clients’ strategies. ………………………… Contact our experts to begin planning your carbon-neutral event. ………………………… This article was written with the support of Francisco Martin, Head of Engineering at ClimateTrade and manager of the

Consumers and regulators are increasingly  demanding transparency on the environmental impact of the products they buy. As a result, companies are taking steps to make their products carbon-neutral. As a reminder, carbon neutrality means balancing out the CO2 we emit with the equivalent carbon absorption from the atmosphere. To achieve carbon-neutral products, companies must first reduce a maximum amount of emissions generated during its production, and then offset the remainder through carbon credits (financing for climate mitigation projects that take carbon out of the atmosphere).  In the coming years, all products will be benchmarked by CO2, and consumers will know exactly how much they pollute before buying them, which will influence their purchasing habits.  Carbon-neutral products and services are a necessity. But making it happen is easier said than done. It requires automated carbon footprint calculation and a reliable platform to give customers full visibility on where the carbon credits are generated. ClimateTrade helps companies to fulfil their most ambitious carbon offsetting commitments, empowering their sustainability strategy with our innovative digital solutions. After noticing the trend towards carbon-neutral products and services, we developed the ClimateTrade API, the first API REST that can be easily and securely integrated into the companies’ systems for them to be able to offer their own customers the possibility of acquiring carbon-neutral products and services during the purchase process.  And this month, we launched the ClimateTrade Widget, a tool with similar functionalities, but an even easier integration process, making it ideally suited for SMEs and organizations with limited IT resources. The ClimateTrade API and Widget provide customers with information about the carbon footprint of their purchases and offer them the opportunity to invest in sustainable projects while offsetting it. We have already  integrated our solutions into the systems of large corporations worldwide. Iberia, offset the carbon footprint of your flight The airline offers its customers to offset the carbon footprint of their flight on a voluntary basis, and when doing so, support sustainable development projects, in a simple click at check-out, thanks to the integration of the ClimateTrade API. The passenger gets the exact carbon footprint of their trip and the price needed to offset it.  Read more about how Iberia is using the ClimateTrade API Tu.com from Telefonica, buy carbon-neutral devices Telefónica recently launched Tu.com, the first online platform for the sale of carbon-neutral devices.  Reaffirming its commitment to achieving zero emissions by 2050, the company is selling devices whose carbon emissions have already been offset, taking into account the environmental impact generated by their manufacture. Read more about Tu.com Members of the Instituto Tecnológico de la Construcción de Cataluña (ITEC) can offset the carbon footprint of their works ITec allows its members to offset their carbon footprint in all types of works involved in the construction process (such as materials, machinery, transport, etc.) and at any phase of the life cycle (manufacturing, construction, use and deconstruction). Read more about ITeC’s partnership with ClimateTrade Make the ClimateTrade API your competitive advantage: integrate our technology into your e-commerce platform or payment process (checkout) and offer carbon-neutral products or services to your customers. Let each shopping cart contribute to reducing your company’s environmental impact.  Contact us to learn more about how to enhance your sustainability strategy.