Within the scope of the climate change process, it is essential to halt global warming. This is the primary goal, and to achieve this goal, it is necessary to create a carbon footprint inventory, starting with the industrial sector. Because to reduce emission releases, it is first necessary to know how much emission has been released. Following a properly and completely calculated carbon footprint inventory, emission reduction projects should be tracked. For this purpose, there are many regulations applied worldwide. Some of these are the GHG Protocol[1] and ISO 14064[2] Standard. The purpose of these regulations is to ensure that the emission inventory is calculated according to the same standard everywhere in the world. Because to reduce emissions, it is necessary to transfer resources from the polluter to the non-polluter. In this way, green investments are prioritized, and funding flows from the polluter to the non-polluter. Within this context, carbon trading is being implemented in recognized organizations. For example: EEX[3]

Carbon trading is currently a voluntary market. Many enterprises engage in carbon trading (purchase-oriented) for various reasons (prestige, social responsibility, commercial obligation, etc.) to become carbon neutral. In this way, brand recognition increases, prestige is enhanced, and social responsibilities are fulfilled. In contrast, enterprises that generate energy without emitting CO2, thereby “saving” emissions through green investments, earn revenue by selling the emissions they have “saved” and can make new green investments. Among green investments, the most preferred projects are GES and RES projects. Some companies that produce energy with fossil fuels are making green energy investments through affiliated companies.

Enterprises may need to calculate their carbon footprint annually to reduce their carbon emissions, implement the determined reduction projects, and even purchase carbon from green projects. Another method is for the enterprise to purchase electricity from enterprises that produce electricity through green projects. Since electricity produced from green projects can usually be compensated with zero emissions, the amount of CO2 per kWh of the total electricity consumed by the enterprise will decrease.

A carbon emission trading system is being established within national boundaries.[4] For participating companies, additional costs may arise each year. To reduce costs, it will be necessary to reduce the carbon emissions being released.

Along with this, there will also be obligations for enterprises to calculate and declare their carbon footprint through various organizations in order to trade. For example, under the “European Green Deal”[5], enterprises trading with the EU will have to pay a tax for the emission value per ton of the products they produce under the “Carbon Border Adjustment Mechanism”. Or they will have to cover the emission values per product through various methods (purchasing carbon, paying for energy with green investments, etc.). In the current situation, the “Green Deal” “Carbon Border Adjustment Mechanism” has determined the activity areas subject to this regime in Annex-1. In Turkey, an action plan has been created to avoid commercial damage in this regard.[6]

Enterprises should prepare in advance for possible future regulations by creating a carbon footprint inventory, listing emission reduction projects, and taking action. Furthermore, carbon footprint, water footprint, and waste management are the fundamental pillars of sustainability carried out by the company. In our current sustainability efforts, the results and story of the carbon footprint inventory and reduction efforts are being declared. Prestigious companies declare the good examples they implement within the framework of public relations and social benefit.

GÖKÇE PARER
AVRASYA GENERAL MANAGER
22.06.2022
[1] https://ghgprotocol.org/
[2] https://www.iso.org/standard/66453.html
[3] https://www.eex.com/en/market-data/environmental-markets/auction-market
[4] https://iklim.csb.gov.tr/karbon-piyasasina-hazirlik-ortakligi-pmr-i-4403
[5] https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal_en
[6] https://ticaret.gov.tr/data/60f1200013b876eb28421b23/MUTABAKAT%20YE%C5%9E%C4%B0L.pdf