The carbon footprint is a measure that calculates the equivalent carbon emissions in atmosphere by a person, activity, event, company, organization or government. She evaluates the atmospheric emissions in greenhouse gasesThe (GEE). Never before has there been so much talk about carbon. With an eye on discussions about climate change and the impacts of greenhouse gas emissions on the environment, the topic is increasingly gaining momentum in the most varied market sectors and is present in almost all serious debates about building a sustainable future.

Who hasn't heard about carbon credits, greenhouse gas inventory, net zero emissions targets, carbon market? However, the conclusions and meanings of such expressions are not necessarily obvious and generally provoke new questions.

To understand how the topic is currently included in business and government agendas, we have to take a step back and understand the historical perspective of discussions, agreements and commitments related to climate change.

1- What are climate changes?

Climate change is a long-term transformation in the planet's temperature and climate patterns. These changes may be natural, however, since 1800, human activities have been the cause of the main climate changes caused, mainly, by increasing GHG emissions into the atmosphere due to the burning of fossil fuels, such as coal, oil and gas. Natural.

Concern about the increase in GHG emissions and their impacts on the planet is not new. Discussions have been taking place for decades at Conferences of the Parties (COPs), which is a meeting of the United Nations Convention on Climate Change (UNFCCC). Its objective is to debate environmental issues, find solutions to problems that affect the planet and negotiate agreements. In 2015, during COP 21, the Paris Agreement was signed – a global commitment between 195 countries with the objective of reducing GHG emissions in order to contain global warming below 2°C – preferably 1.5°C – and strengthen the capacity of countries to respond to the challenge, in a context of sustainable development.

However, even with all these commitments and actions, global emissions continue to increase, as does the global average temperature. Therefore, carrying out a series of effective actions to reverse this global scenario has become an urgent challenge.

2 – What can we do to change the global climate crisis scenario?

Governments seek to establish bolder public policies that encourage a transition to a low-carbon economy with instruments that make it possible to manage and mitigate GHG emissions, such as encouraging the use of renewable energy, such as reducing, reusing and recycling materials, among others.

Carbon Management concerns the process of measuring and managing the volume of carbon emitted to the atmosphere in order to identify opportunities to reduce emissions, as well as implementing a carbon sustainability strategy for the company or country.

3 – What is the Carbon Market?

The Carbon Credit Market is the carbon emission offsets trading system or greenhouse gas equivalent. There are two types of marketing system – voluntary and regulated. The voluntary carbon market meets the demand for carbon credits from companies and individuals who voluntarily decide to neutralize their greenhouse gas emissions.

The regulated market meets the demand for carbon credits from specific companies and sectors, through legal mechanisms developed by governments – national, state or regional. It is worth mentioning that in Brazil, the regulated market is not yet established.

4 – What is Carbon Credit?

And the currency used in the carbon market. It is a digital representation of one ton of carbon that was no longer emitted into the atmosphere. Then, 1 carbon credit = 1 ton of CO₂ equivalent. This issuance is verified and certified. The trading price of carbon credits depends on the market in which it is being traded.

5 – How are carbon credits generated?

Both markets have protocols and standards to follow. In the regulated market, countries like Brazil can only participate voluntarily and using the Clean Development Mechanism (CDM), where almost all types of projects are accepted, except nuclear energy, new HCFC-22 installations and avoided deforestation (REDD+ ). There is no restriction on the size of projects (small, medium or large scale), but they can only be located in countries that are not in Annex I of the United Nations Convention on Climate Change.

For the voluntary market, there are more than 100 types of carbon credits. Contrary to what many think, it is not easy or simple to generate carbon credits. The process of obtaining carbon credits is long and can be very expensive. Each protocol or standard has its own cost and process, but they all follow the same logic:

• Development of the Project Design and its detailed description in a document
• Validation of the project description, including a public comment period
• Third Party Review
• Approval by the chosen Protocol
• Project Registration
• Project development
• Project Monitoring
• Verification Audit
• Recommendation for issuing carbon credits

Each stage of this process is paid for by the project proponent and it is only at the end of the process that credits are issued and can be sold. An important “zero” step, prior to project design, is to verify and understand which existing protocol and standard meet the project that will be submitted for carbon credit. The most used certification standards currently existing in Brazil are:

• CDM: flexibility mechanism created by the Kyoto Protocol to assist in the process of reducing greenhouse gas (GHG) emissions or carbon capture. For more information, visit the website  https://cdm.unfccc.int/Reference/tools/index.html
• Gold Standard: works with the certification of CDM projects. For more details, visit the website https://www.goldstandard.org/.
• Verra (VCS): quality standard for carbon accounting, based on ISO principles that guarantees emissions reductions are additional, unique and verified. For more details, visit the website https://verra.org/

REDD+, which is also mentioned a lot today, is an economic instrument developed by the UNFCCC. REDD stands for Reducing Emissions from Deforestation and Forest Degradation (in English, Reducing Emissions from Deforestation and forest Degradation), with the + representing the social and biodiversity gains that occurred during the development of the project.

A ECO Space Foundation (FEE) seeks to assist its clients in all stages of carbon management. In the Diagnosis stage, FEE uses Hotspot Analysis to map relevant themes and identify market perceptions to recognize the company's strategic position in relation to the theme and market practices. 

In the Quantify phase, FEE carries out quantitative studies using internationally recognized methodologies (Life Cycle Assessment, Carbon Footprint and Emissions Inventory). These studies can serve as a basis for the next stage 'Reduce', as they help identify opportunities for improvements in the process to reduce carbon emissions.

In the Clearing phase, FEE has the Mata Viva Program for tree plantations (not certified) and supports its clients in the process of obtaining carbon credits, identifying existing protocols and carrying out quantitative studies.

In the Innovate phase, FEE seeks to help its clients develop and invest in initiatives that promote socio-environmental benefits, through the application of Theory of Change It is social impact tools.

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