A carbon credit is a practical tool designed to address climate change. It's essentially a tradable certificate or permit representing the right to emit one ton of carbon dioxide (CO2) or an equivalent amount of another greenhouse gas (GHG). This concept is part of a broader strategy aimed at reducing global greenhouse gas emissions and mitigating climate change.
Typical greenhouse gases (GHGs) are those that trap heat in the Earth's atmosphere, contributing to the greenhouse effect and global warming. The most common greenhouse gases include:
Carbon Dioxide (CO2)
The most significant greenhouse gas, which is primarily caused by human activities and remains for a long time (centuries) in the atmosphere. The excess CO2 traps heat in the Earth's atmosphere, contributing to global warming. Below picture shows the CO2 concentration in the atmosphere over the last 800.000 years. Geological records indicate that CO2 levels have fluctuated about 180 ppm (parts per million) during ice ages and around 280 ppm during warmer interglacial periods. Prior to the industrial revolution (around 1750) atmospheric CO2 concentrations were relatively stable at around 280 ppm for thousands of years. Since then human activities such as burning fossil fuels (coal, oil, and natural gas), deforestation, agriculture, and industrial processes have significantly increased atmospheric CO2 concentrations to currently around 400 ppm, a level which has not been seen in 800.000 years and which is driving rapid climate change.
Methane (CH4)
Methane is another greenhouse gas that contributes to global warming. It is emittedfrom sources such as livestock digestion, rice cultivation, natural gas production, andlandfills. Methane is much more potent (approx. 28x) than CO2 in terms of its ability totrap heat, although it persists in the atmosphere for a shorter time (approx 10 years).Since the industrial revolution methane levels have increased from around 700 ppb toaround 1800 ppb (parts per billion).
Nitrous Oxide (N2O)
Nitrous oxide is a powerful greenhouse gas emitted primarily from agricultural activities,such as the use of synthetic fertilizers, livestock manure management, and biomassburning. It also comes from industrial processes and the combustion of fossil fuels.Nitrous oxide has a high global warming potential (approx 300x more potent than CO2)and can remain in the atmosphere for more than a century. An additional negative effectof N2O is that it also depletes the ozone layer. Since the industrial revolution N2O levelshave increased from around 270 ppb to around 320 ppb (parts per billion).
Fluorinated Gases
These are synthetic gases used in industrial applications, often as refrigerants or inelectronics manufacturing. Fluorinated gases are extremely potent greenhouse gases,often thousands to tens of thousands of times more effective than CO₂ at trapping heat,but they exist in smaller quantities.
Water vapor (H2O)
Water vapor is the most abundant greenhouse gas in the atmosphere, but its levels areprimarily influenced by temperature rather than direct human emissions. However, asthe Earth warms due to the increased concentrations of CO2 and other greenhousegases, the atmosphere can hold more water vapor, amplifying the greenhouse effectand further contributing to global warming.
Understanding the weight of our carbon footprint is key to addressing climate change. For instance, annually, the average European emits between 7 to 10 tons of CO₂, while in the U.S., it's significantly higher at 16 to 20 tons. On a smaller scale, a one-way flight from New York to London emits about 1.2 tons of CO₂ per passenger, or a gasoline car covering 10,000 km/year emits about 2.4 tons. These figures provide insight into the impact of our daily activities on the environment.
A carbon credit can be a reduction or a removal credit. In most cases (95%) it represents a reduction in greenhouse gas emissions, allowing companies to offset a portion of their emissions by supporting projects that reduce or avoid CO₂ release. These projects might include energy efficiency improvements, renewable energy installations, or deforestation prevention. However, with reduction credits, while emissions are lowered, there is still additional CO₂ being released into the atmosphere.
In contrast, a removal credit specifically refers to the process of actually removing CO₂ from the atmosphere. This could be achieved through methods like reforestation, soil carbon sequestration, or direct air capture. With CO₂ removal, the carbon already in the atmosphere is captured and stored, effectively balancing out the emissions. This means that instead of simply reducing the rate at which CO₂ accumulates, removal credits contribute to the active decrease of carbon in the atmosphere.
By understanding the distinction between reduction and removal, companies can better align their sustainability strategies with their environmental goals. This means choosing between reducing future emissions, actively removing existing ones, or offset historic CO₂ from the atmosphere.
With below graph we try to explain the difference between carbon reduction or avoidance compared to carbon removal and its effect
Carbon removal solutions refer to technologies and natural processes designed to remove carbon dioxide (CO₂) from the atmosphere and store it in a way that prevents it from contributing to climate change. These solutions are crucial in achieving net-zero emissions and mitigating the impacts of global warming, especially as some sectors may not be able to fully eliminate their emissions.
Examples of Technological carbon removal solutions are:
- Direct Air Capture (DAC)
- Bioenergy with Carbon Capture and Storage (BECCS)
Examples of nature-based carbon removal solutions are:
- Afforestation and Reforestation
- Soil Carbon Sequestration
- Wetland and Peatland Restoration
- Marine Permaculture and Seaweed Farming
Scature specialises in nature-based solutions (NBS) for carbon removal, including ocean-based, rock-based, construction-based, and land-based projects. Each of these solutions provides distinct advantages and can be adapted to specific environmental conditions and aligned with a company's strategic goals.
- Ocean-based solutions include practices like kelp farming, which captures carbon dioxide through photosynthesis
- Rock-based solutions, such as enhanced weathering, involve spreading certain types of rocks that naturally absorb CO2 over time.
- Biobased building solutions focus on integrating biomass, like plants and wood, into sustainable building materials that store carbon.
- Land-based solutions include afforestation, reforestation, and soil carbon sequestration, which enhance carbon storage in forests and soils.
While Scature emphasises nature-based solutions due to their regenerative potential and alignment with natural ecosystems, it's important to acknowledge other carbon removal methods. These include biochar, which involves converting organic waste into a stable form of carbon that can be stored in soil, and direct air capture (DAC), a technology that filters CO2 directly from the atmosphere. Although these methods have significant potential, Scature’s approach centres on NBS for their broader ecological benefits.
A solution is called nature-based when it leverages natural processes, ecosystems, or the services they provide to address societal challenges in a sustainable manner. To be classified as a nature-based solution (NBS), certain parameters or criteria must be met, ensuring that the approach benefits human well-being while also supporting or enhancing ecosystem health.
Examples of Natural Processes:
Synthesis: Plants use solar energy to convert carbon dioxide (CO₂) into organic matter, which helps store carbon in plant biomass and soil. This process is fundamental in mitigating climate change by sequestering CO₂.
Water Filtration: Wetlands and forests naturally filter pollutants from water, improving water quality and reducing the need for artificial water treatment systems.
Pollination: Various plants and crops rely on natural pollinators like bees and butterflies to reproduce, which is crucial for maintaining biodiversity and food security.
By leveraging such natural processes, NBS offer sustainable solutions to environmental and societal challenges, creating a balance between human needs and ecosystem health.
Photosynthesis is nature's ingenious process by which green plants use sunlight to convert carbon dioxide and water into glucose (sugar) and oxygen. This process not only sustains plant life but also stores CO₂ in plants and soil, preventing it from being released into the atmosphere. It's a natural mechanism for reducing overall CO₂ levels and combating climate change.
Nature-based solutions go beyond carbon sequestration, offering immense co-benefits when implemented effectively. They enhance biodiversity, improve water retention, boost soil health, and increase nutrients in our food, while also supporting local communities and creating more resilient ecosystems. At scale, these solutions have cascading effects, such as reducing downstream flooding, reducing droughts and repairing the water cycles, creating healthier plants and animals, improving human health, and consequently lowering healthcare costs.
Regenerative agriculture is a NBS and focuses on restoring ecosystems and improving agricultural productivity by prioritizing soil health, biodiversity, and water conservation. It aims to create farming systems that are not only productive but also ecologically sound and resilient, contributing to a more sustainable and resilient food system.
Organic farming focuses primarily on avoiding synthetic inputs, such as chemical fertilisers and pesticides, and is often seen as environmentally friendly. While it offers benefits like reduced chemical use, it doesn’t necessarily address soil health, biodiversity, or carbon sequestration in a comprehensive way. Organic practices can sometimes rely heavily on tilling, which disrupts soil structure and can contribute to erosion and carbon loss.
Regenerative farming, on the other hand, goes beyond organic. It not only avoids synthetic inputs but also prioritises rebuilding soil health, enhancing biodiversity, and drawing down atmospheric carbon through practices like no-till farming, cover cropping, and integrated livestock. The aim of regenerative farming is to create a system that continuously improves the land, water cycles, and ecosystems. It’s a holistic approach that works with nature to restore ecological balance rather than just avoiding harm.
A carbon farmer is someone who actively removes CO₂ from the air using NBS and stores it in various reservoirs like soil, trees, plants, oceans, or rocks. The goal is to mitigate climate change by reducing the concentration of CO₂ in the atmosphere and creating a more sustainable and resilient environment.