New standards and public procurement requirements forcing companies to turn their net zero targets into ambitious, yet achievable decarbonisation plans. Today, more than 74 countries, representing over 80% of the world’s GDP and almost 70% of global CO2 emissions, have announced net zero carbon commitments. Moreover, more than 3,000 companies have set their own targets as part of the United Nations’ Race to Zero campaign, in recognition of the fact that the rules of corporate competition are changing, and that the level of global collaboration between companies and governments needs to increase. Most of the commitments share a 2050 deadline. This may seem very far away, but 30 years isn’t much when it comes to decarbonizing a company’s entire operations, and regulators know that. For this reason, governments are starting to align their own net zero targets with their purchasing strategy. A major public tender milestone in the United Kingdom In September 2021, the UK added environmental criteria to its public tender selection process for contracts of more than 5 million pounds. The measure applies to all departments in the central government, as well as executive agencies and public organizations. Among the selection requirements is the delivery of a carbon reduction plan, which must include a detailed breakdown of where the bidding company’s CO2 emissions come from, and what environmental and carbon reduction measures it plans to implement. Several large corporations are already reporting their Scope 1 (direct) and Scope 2 (own indirect) emissions as part of their energy and carbon reports, particularly since 2018. But the new rules go beyond that, requiring not only a commitment to achieve net zero by 2050, but also the reporting of parts of Scope 2 (value chain) emissions. These must be calculated according to the GHG Protocol recommendations, and include business trips, employee commute, transportation, distribution and waste, for the first time. Scope 3 emissions are a significant proportion of an organization’s carbon footprint, yet they are often the hardest to calculate and reduce. For the UK government, understanding, reporting on and reducing these three scopes of CO2 emissions will play a major role in the decarbonization of the government’s supply chain, and of the overall country’s economy. Related articles: EU ETS: What is it and why is it changing? Everything you need to know about the EU Carbon Border Adjustment Mechanism First international standards around companies’ net zero strategies At the same time, the recent launch of the Science-Based Targets Initiative (SBTI) corporate standard aims to put an end to ambiguous “net zero” targets that don’t put words into action. With this methodology, SBTI is giving companies the tools and guidance they need to build a credible and independently verifiable strategy. The goal is also to align short and long-term climate action with the target of limiting global warming to 1.5°C. In practice, the standard aims toward a 50% reduction of corporate emissions by 2030, and 90-95% by 2050. To achieve net zero, the emissions that can’t be eliminated (the remaining 5-10%) will have to be offset through the purchase of carbon credits. The standard requires companies to focus on rapid and thorough emissions reductions, to establish short and long-term targets, and to stay away from large-scale communication on their net zero goal until long-term objectives involving their entire supply and value chains have been achieved. The standard will help large companies elaborate concrete GHG reduction plans that can be verified by third parties, which is very likely to become a requirement from investors as well. Related articles: How to offer carbon-neutral products and services Carbon offsetting for SMEs Institutional investors demand greater ESG transparency  Pressure is also growing to comply environmental, social and governance (ESG) requirements from institutional investors (such as BlackRock, Vanguard, State Street or sovereign pension funds), particularly for large, listed corporations. In 2020, 85% of investors implemented ESG criteria in their portfolios.  These investors have noticed a correlation between ESG performance and value creation for shareholders. Additionally, ESG criteria are a tool to identify and mitigate environmental, social and governance risks. It has become apparent that companies with a strong ESG performance tend to be more efficient and productive, spend less money, create less waste and enjoy a stronger commitment from employees, which makes them more attractive to both capital and talent. Capital markets and increasingly considering emissions risks in the price of assets, and venture capital in transition technologies is at its highest point. ClimateTrade’s digital solutions to help companies achieve net zero commitments As seen above, investors’ and governments’ requirements around decarbonisation are becoming more stringent, and at the same time, consumers’ sustainability expectations are also growing. In the coming years, products will be compared according to their CO2 footprint, and this will influence purchasing decisions. Carbon-neutral products and services are a necessity, but achieving them is no easy task. It requires the automatic calculation of carbon footprint, and a reliable platform that can give clients complete visibility over where and how carbon credits are generated. ClimateTrade helps companies achieve their sustainability and carbon offsetting goals, strengthening their corporate social responsibility strategies through innovative digital solutions. Having noticed the demand for carbon-neutral products and services, we have developed the ClimateTrade API, the first API REST that can be integrated easily and safely into companies’ systems, so they can allow their own customers to acquire carbon-neutral products and services at check-out. In November 2021, we also launched the ClimateTrade Widget, a solution which presents similar functionalities, but with an even simpler integration process, which makes it perfect for SMEs and organizations with limited IT resources. The ClimateTrade API and Widget give clients information about the carbon footprint of their purchases, and allows them to invest in sustainable projects to offset it. We have already integrated these solutions into the systems of various international corporations. Check out our case studies. ……………… Want to find out more? Contact our experts.  Article written by Miguel López, Carbon Credits Manager, and Francisco Martín, Head of Engineering, both at ClimateTrade.

With 2021 coming to an end, we only have eight years left to achieve the United Nations’ Sustainable Development Goals (SDGs). Is the decade of climate action delivering on its promises? In 2019, the United Nations declared that after many years of talks to achieve the globally coordinated climate and social policies included in the SDGs, 2020 should usher in ‘the decade of action’. Or as Greta Thunberg put it at this year’s COP26, no more “blah blah blah”. In this article, we look at the current state of climate action and the likelihood that the world will achieve its SDG promises before the 2030 deadline. Government action At government level, it is fair to say the pace of action is picking up. Practically every country now has some kind of climate legislation in place, and 237 of these laws were passed since 2020 alone. As of June 2021, 1,900 local governments and 34 countries had declared a climate emergency. In Europe, since the launch of the European Green New Deal, new regulatory proposals on environmental or social matters are contemplated every week, and a decarbonisation roadmap has been set out to achieve 55% emissions reduction by 2030, compared to 1990 levels. Citizen action The strengthening of the regulatory framework around climate is leading to an increase in climate litigation, whereby citizens or associations can sue their own governments for taking actions that go against their commitment to fight climate change. One recent example of this is the Stop Cambo lawsuit against the UK government for approving a new oil field in the North Sea. The lawsuit itself is against the government, but the public campaign led by environmental activists gained so much traction that one of the project’s private owners (Shell) pulled out in early December just a few days before the court date, leading to a “pause” in the project development. According to the Grantham Research Institute on Climate Change and the Environment, the cumulative number of climate change-related litigation cases has more than doubled since 2015, and this trend is set to continue. Business action New regulations and customer expectations are also leading to action in the business sphere. For instance, in July 2021, the European Commission adopted the Sustainable Finance Strategy and proposed a new European Green Bond Standard to increase investment in the EU’s transition towards a sustainable economy. Globally, new regulations on transparency regarding environmental risks for investment portfolios have led to an exponential increase in Environmental, Social and Governance (ESG) investment. According to MorningStar, by June 2021, ESG fund assets had reached US$2.24 trillion, almost double from US$1.28 trillion at the end of 2019. This is setting the course for economic initiatives and corporate strategic plans. Today, 622 of the 2,000 largest publicly traded companies have made net-zero commitments.  Innovation is the strength of the private sector, and when applied to climate, it can create lasting change. New developments in clean energy technologies such as solar panels and batteries, for instance, have fuelled the tremendous growth of renewable electricity and electric vehicle adoption in the past few years. In 2020, 29% of global electricity generation came from renewables, and 2021 saw renewable generation capacity increase by 290 gigawatts. The International Energy Agency predicts a 60% rise in renewable electricity capacity between 2020 and 2026, to over 4,800 gigawatts – equivalent to the current total global power capacity of fossil fuels and nuclear combined. Reality check Despite this flurry of action, scientists are unanimous: we are not on track to meet the Paris Agreement’s commitments. In 2021, global carbon dioxide emissions from fossil fuels are expected to reach 36.4 billion tonnes, only 0.8% below pre-pandemic levels. The IEA notes that in order to reach carbon neutrality by 2050, renewable power capacity additions over the period 2021-26 would need to average almost double the current rate. And the State of Climate Action 2021 report, published last November, makes a clear statement that “the hard truth is that for many transformations, action is incremental at best, and headed in the wrong direction altogether at worst”. In fact, none of the 40 indicators assessed in the report are on track to meet environmental targets.  We need to correct this trajectory and dramatically accelerate the delivery of climate commitments in all spheres: government, private sector and civil society. It is time to  achieve gigaton decarbonisation by simultaneously reducing global emissions and increasing the financing available to climate mitigation projects. At company level, this means it is time to calculate your carbon footprint, implement emissions reduction measures, and offset remaining emissions to achieve carbon neutrality. ClimateTrade can help: register for free on our marketplace or get in touch with our team. As the State Climate Action report authors put it: “We must not only do better. We must do what it takes.”

[fusion_builder_container type=”flex” hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”true” min_height=”” hover_type=”none” link=”” border_sizes_top=”” border_sizes_bottom=”” border_sizes_left=”” border_sizes_right=”” first=”true”][fusion_text columns=”” column_min_width=”” column_spacing=”” rule_style=”default” rule_size=”” rule_color=”” hue=”” saturation=”” lightness=”” alpha=”” content_alignment_medium=”” content_alignment_small=”” content_alignment=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” sticky_display=”normal,sticky” class=”” id=”” margin_top=”” margin_right=”” margin_bottom=”” margin_left=”” fusion_font_family_text_font=”” fusion_font_variant_text_font=”” font_size=”” line_height=”” letter_spacing=”” text_transform=”none” text_color=”” animation_type=”” animation_direction=”left” animation_speed=”0.3″ animation_offset=””] What can you do to improve sustainability in remote work? More than a year after the Covid-19 virus forced the world into lockdown, a new variant and rising infection rates in Europe are once again pushing people toward remote work. The pandemic led many companies to implement remote working to avoid workplace contagion. Now, employees that have enjoyed this flexibility in the past year expect to maintain it, at least partially, in the future. And with seemingly unending waves of large-scale Covid-19 infections, it appears remote work is here to stay. In terms of sustainability, working from home presents a very clear benefit in avoiding the daily commute and the carbon footprint that goes with it. It is estimated that carbon dioxide emissions from transportation dropped by 15% during lockdown. But remote working is not necessarily as good for the environment as it seems, since it also involves spending a lot of energy on lighting, heating or air conditioning, electronic equipment and many other resources needed to work comfortably from home. One report found that weekday home electricity consumption increased by 20% in the UK during lockdown. A growing environmental awareness has pushed people to develop new habits at home in recent years, such as avoiding waste or reducing energy consumption. For remote work to be more environmentally friendly than office work, these habits need to continue when home becomes the office. So, how can we ensure energy efficiency when working remotely? Reduce energy use The first thing that can be done to reduce the monthly expenditure is to regulate the room temperature to 20ºC in winter and 26ºC in the summer season, comfortable temperatures that don’t require too much energy. Another measure is to switch to low-consumption or LED light bulbs in the house, which is positively reflected in the electricity bill at the end of the month. Choose natural light Make the most of natural light by raising the blinds, opening the curtains and choosing light colours for the walls. This will ensure that you benefit from what the planet naturally offers and avoid putting too much pressure on its resources. Smart Houses: technology as an ally Smart homes are synonymous with monitoring, which can help you know when and where your energy is being spent. With this visibility, you can implement easy changes with a big impact on your energy consumption. Charging intervals If you have devices with a certain autonomy, it is best not to have them always plugged in. Once the battery is charged, disconnect them and keep working until you need to charge them again. If you don’t use it, turn it off In most homes and offices, extension cords and plugs are used to connect various devices to the power grid. Once you have finished your work day, don’t forget to turn off the main switch to avoid consuming unnecessary energy. Renewable energy sources If you have a choice, switch to a renewable energy provider: make the most of renewable energy sources such as solar panels or windmills. You can also implement efficient heating systems such as underfloor heating, and set up energy recycling systems in your home. There are always ways to be more sustainable in our everyday life. Now that you know how to reduce your impact in remote work, we encourage you to do it in other areas of your life. If you are a company looking to calculate carbon footprint after implementing remote work, we can help! Get in touch with our experts. [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Factors like the pandemic, the climate emergency and rising social inequalities are pushing real estate investors to think of ways their asset portfolios can meet the challenges related to the environmental sustainability of buildings. This pressure is forcing building managers to incorporate certain measures at each phase of their buildings’ life cycle, from due diligence to acquisitions and rentals. One of the trends noticed by real estate owners and operators is around energy savings and carbon neutrality commitments. This is an attempt to trigger positive environmental changes through greener leasing and technologies. For instance, it’s increasingly common to request changes and refurbishments with the goal of lowering the carbon footprint of buildings. Another trend is considering health and wellbeing criteria in design decisions and in building operations. Tenants and other occupants insist more on indoor air quality than before, requesting adequate ventilation systems and other elements of indoor atmosphere to improve the comfort of their employees. For this reason, buildings that meet those specifications tend to attract more demand in the long term. The rental price gap between buildings that have implemented energy improvements (green rentals) and those that haven’t (brown rentals) is also increasing. At the same time, green construction materials are more widely available and economically viable than ever before, which is a boon for energy efficiency and carbon emission reduction refurbishing and remodeling. In financial terms, under the current asset valuation system, a ‘brown discount’ is being applied to buildings that fail to become more sustainable. These trends have been acknowledged by sustainability managers working for the biggest names in real estate, such as JLL, CBRE and C&W, all of which took part in the UN Climate Change Conference in Glasgow (COP26). Speaking to the press, they explained that we will see more and more examples of this ‘brown discount’ in the coming years, at a much higher rate than the ‘sustainable premium’ applied to buildings with the best sustainability performance. This pressure is currently felt particularly in Europe and in the United Kingdom. For instance, a real estate representatives cited a UK building valued at a certain price in 2020 suffered a price decrease of 30% in 2021, when the costs associated with the transition to net zero carbon were taken into account. This is much higher than  the value increase generated by the added value of already being net zero, the so-called ‘sustainable premium’, which stands between 5% and 12%. The CO2 emissions of buildings The CO2 emissions (also called carbon footprint) of buildings are generally divided into two categories: the emissions associated with project and building activities themselves (labor and equipment), and those from the raw materials and other elements or existing equipment used in the building’s operations. This second category also includes emissions from the building’s energy sources for electricity, as well as waste management. Regional differences In the northern hemisphere, the challenge is largely around modernizing existing buildings to make them net zero carbon, since it is estimated that 80% of buildings in this part of the world will still be around in 2050. Financially speaking, for the valuation of these assets, the risk is much higher than the opportunity in these regions: the challenge for real estate managers in the northern hemisphere is to create assets that are truly resilient in the long term. Failing to invest in the net zero transition will result in drops in value. At the same time, the demand for more sustainable management by these buildings’ tenants is growing, since many of them are large companies and corporations with their own shareholder and consumer-driven carbon neutrality and net zero targets. The role of financial and insurance institutions This economic trend will have an impact on the financial world, since banks are the ones offering loans to real estate promoters and other entities that tax, value and insure these buildings. Banks will increasingly demand concrete and credible environmental transition plans from the real estate assets they lend to, according to what was said at the Financial Alliance for Net Zero’s COP26 presentation. As a result, the “brown discount” seems likely to be applied to financial return forecasts. How to calculate CO2 emissions Spain’s 2030 Observatory of the Consejo Superior de los Colegios de Arquitectos de España (CSCAE), a business association for architects and contractors, and ClimateTrade, have developed a carbon footprint calculator for companies in the construction sector. This is the first step in helping the construction industry achieve carbon neutrality. The application is the result of a partnership agreement signed between the CSCAE and ClimateTrade to jointly develop digital initiatives to fight climate change and achieve the UN’s Sustainable Development Goals (SDGs) for the 2030 Agenda. The calculator is free to use and already available for the almost 200 members of the CSCAE’s 2030 Observatory, allowing them to quantify the emissions they generate and offset them through environmental projects in Spain and around the world. CO2 emission calculation and management with ClimateTrade ClimateTrade has developed a Widget solution to allow companies of all sizes the opportunity to offer transparent and traceable carbon offsetting to their clients. The Widget is quick and easy to integrate, which makes it particularly suitable for small and medium enterprises (SMEs) or organizations with limited IT resources. On the other hand, the ClimateTrade API is an advanced digital solution that allows large companies and polluting multinationals to reduce their Scope 3 carbon footprint by involving their providers. The Application Programming Interface (API) is customized for each sector, helping companies manage, calculate and offset their supply chain emissions. Thanks to decentralized blockchain technology, consensus and clear rules can be generated between providers, and a control dashboard motivates them to become carbon neutral via online offsets. On the ClimateTrade marketplace, supply chain members can offset their Scope 1 emissions through EU emissions rights (EUAs), and Scope 2 emissions through renewable energy origin certificates from the I-REC Standard. Register on the marketplace or contact us to speak to one of our experts. Article written

Under the title “Uniting the world to tackle climate change”, the next United Nations Climate Change Conference (COP26) will bring together representatives of 200 governments to accelerate climate action to deliver on the Paris Agreement.  On 12 December 2015, at COP21 held in Paris, world leaders adopted a historic agreement with the firm purpose of curbing climate change. They pledged to keep the average global temperature increase below 2°C – compared to pre-industrial levels – and to work towards limiting this increase to 1.5°C. They also agreed to intensify efforts to adapt to the impacts of climate change and to build financing flows consistent with the transition to a low-carbon economy and climate-resilient development. The upcoming edition to be held in Glasgow (UK) from 1-12 November 2021, is key to review these previous commitments and shape the new responsibilities in the fight against global warming.    What to expect from COP26? COP26 aims to demonstrate the urgency and opportunities of moving towards a carbon-neutral economy, as well as the power of international cooperation to address the most serious challenges the world is facing. One of the most anticipated developments concerning the Glasgow meeting is to create a better definition of emission reduction calibration methodologies. The details of accounting and transparency constitute the essential nuts and bolts of the Paris Agreement, and are critical to avoiding real risks of “double counting” of emissions reductions. Another important point expected is the regularisation of the so-called Article 6 of the Paris Agreement, which addresses two of the main market mechanisms. In Article 6.2, trading between countries of credits generated by emission reduction/removal projects is proposed. In Article 6.4, a decentralised trading mechanism between public and private entities is proposed, based on projects certified and validated by a supervisory body.   Nature-based solutions A third objective of COP26 is to focus on “nature-based solutions” and analyse the potential of forestry, ecosystems and agriculture to combat global warming. These opportunities are crucial to absorb emissions and help countries reach net-zero carbon targets.  (WWF: Nature-based solutions for climate harness the power of nature to reduce greenhouse gas emissions and also help us adapt to the impacts of climate change). In the short term, voluntary carbon credits from projects focused on emissions avoidance/reduction can help accelerate the transition to a decarbonized global economy, for example by driving investment into renewable energy, energy efficiency, and natural capital. They enable companies to support decarbonization beyond their own carbon footprint, thus accelerating the broader transition to a lower-carbon future. In the medium to long term, voluntary carbon credits could play an important role in scaling up carbon dioxide removals needed to neutralize residual emissions. Investing in carbon offsetting projects helps countries meet these goals by providing solutions to reduce the amount of carbon in the atmosphere.  This mission helps achieve the goals of the Paris Agreement and enables everyone to get involved in climate action.   ClimateTrade at the COP26 ClimateTrade will be the only carbon offsetting start-up from Spain to be physically presented at the Sustainable Innovation Forum that takes place alongside COP26. With an exclusive booth and the participation of the CEO Francisco Benedito in the panel “How to make nature bankable”, the company is eager to lead and engage in carbon discussions and actions, reinforcing its mission of stopping climate change and generating a direct impact on society and on the environment. 

The relationship between COVID-19 and climate change has complex implications that go far beyond logical reasoning. In fact, regardless of the sharp decrease in global emissions due to the confinement of the world’s population, it is a major mistake to claim that global warming has been halted. Large amounts of carbon dioxide and other greenhouse gases have been accumulated in the atmosphere since the Industrial Revolution of the mid-18th century. So, How has this pandemic affected the fight against climate change? Obviously, there has been a remarked reduction in the emission of greenhouse gases into the atmosphere, but this low emission scenario seems to be only a one-off. Climate change remains one of the greatest challenges we are facing as humanity and we will have to keep dealing with it in the future. Pollution may grow after the coronavirus According to Lauri Myllyvirta, an analyst at the Helsinki Clean Air and Energy Research Centre, contamination may be triggered by the coronavirus. The economic downturn and containment measures due to the coronavirus could lead to CO2 emissions to levels not seen since World War II. “This already happened after the financial crisis of 2009,” said the analyst. The attempt to increase production in order to meet their targets will lead to a considerable increase in coal burning, and a return to normal could involve that emissions reach new historic highs. Due to fear and as a preventive measure, public transport will take a back seat, generating an increase in the use of private vehicles for moving around in the cities. In addition, as the global economy is suffering, many people, companies and countries will put the fight against climate change and sustainability goals on hold to make ends meet. There is a high risk that, in the face of the need for recovery, we will lead environmental policies into oblivion, failing to meet all the objectives set by governments and major organisations against climate change. If we want to draw some kind of learning from the COVID-19 in relation to the fight against climate change, that is if we unite as an international community, we can stop any threat, that a world with fewer emissions is possible, that we must not delay the ecological transition and, above all, that we need to take ambitious climate action on mitigation, adaptation and green finance.