The negative effects of carbon dioxide are extensively discussed in the media and are one of the known factors contributing to global warming. Reducing greenhouse gas emissions is one of the key elements in the European Union's climate strategy and targets for 2030. Carbon dioxide reduction applies to many companies in different sectors. Businesses are encouraged to transform more energy-efficient operations with incentives and sanctions by governments and global climate agreements. The regulations have forced specific industries to start the fight against emissions, but also encourages many other businesses to join the fight against climate change.
European Union established an EU ETS emission trading system for European companies to encourage them to reduce their CO2 footprint. The system helps companies to invest in their energy efficiency and discover more ways to accelerate the reduction of emissions.
The EU ETS system is 'a cap and trade' system where the overall emissions of all participant countries form a cap for each year. The level of the cap determines the allowance available for each year. In the beginning, all participants have a certain amount of ETS's to offset their emissions, but annually the allowance decreases and the amount of ETS's is less each year. If the annual amount of ETS's is not enough to cover the company's emissions, the company must buy more ETS's to avoid penalty payments. If the company has less emission, they can sell their additional ETS's creating a market for emission trading. The market is highly regulated by the EU, making it accessible only for businesses in specific industries.
The new regulations have encouraged several companies to involved consumers to reduce CO2 emissions by offering their customers an opportunity to offset their carbon footprint when purchasing a product or service. However, the resulting carbon footprint cannot be wiped out with money, but a viable option is to invest the offset for building new sustainable innovations.
Companies are using the proceeds of CO2 emissions to transform their business in a more energy-efficient direction, such as shifting to sustainable energy, developing waste treatment and recycling, reforming packaging materials to be more sustainable, and planting trees to increase CO2 sinks. Thanks to CO2 offsets and customers' involvement in CO2 reduction, more and more companies have the opportunity to develop more sustainable and energy-efficient solutions and thus contribute to reducing emissions.
However, many consumers are not aware of all EU legislation on emissions and the means of prevention, meaning that companies' emission trading often seems like obscure additional sales in the eyes of the consumer. Companies should pay attention to how to guarantee the actual effect of CO2 offset to consumers, and offer more freedom to choose different ways to offset the CO2 footprint. One way to ensure the use of the CO2 compensation is a CO2 certification bound to a digital asset or a third-party platform to provide the emission offset. The even better way is to let a customer choose the removal asset at the checkout. Whether it is planting trees or investing in the company's transformation to renewable energy, it empowers the customer to join the fight against climate change.
NordXE will offer companies multiple ways of offsetting emissions and provides the customer with a clear and reliable way to offset their carbon footprint while making a purchase. With NordXE, you can make consumers understand where your CO2 offset is being used, and offer several ways to offset the carbon footprint right at your checkout or through a third-party platform. Ask more here.