Driving Climate Leadership with Diverse Environmental Credits
Use cases for the customer
- Private or public sector organizations that would like to create a voluntary environmental market and show climate leadership.
- The diversification of environmental assets beyond carbon – water, biodiversity, energy efficiency, avoided plastic – is an appealing factor of these environmental voluntary markets.
- Each use case will necessarily refer to present or future market needs.
Water positive credits
Water Positive is a concept in which an entity (company), community or individual, goes beyond simple water conservation and actively contributes to the sustainable management and restoration of water resources. The goal of being water positive is to leave a positive impact on water ecosystems and ensure that more water is conserved and restored than is used or depleted.
- A Water Positive Credit (Credit Aqua Positive - CAP) is a unit to measure positive water impact.
- Organizations can finance water resource preservation and restoration projects through CAPs sale.
- Organizations committed to sustainable water use can purchase CAPs to mitigate their impact and become Water Positive.
Energy efficiency credits
The Spanish Government has established a system of Certificates of Energy Savings (CAEs)- electronic documents that guarantee that, after carrying out an energy efficiency action, a new final energy saving equivalent to 1 kWh has been achieved. This instrument allows for the monetization of energy savings, recovering part of the costs of investment in energy efficiency (changing lighting, improving thermal insulation, renewing industrial or domestic equipment, etc.), since the end user can receive compensation if they sell the savings obtained for subsequent certification through the CAE system.
The CAE system allows companies to contribute to the National Energy Efficiency Fund by promoting measures that generate verifiable energy savings. Customers that have implemented energy efficiency measures in their facilities may be eligible to obtain CAEs, by reducing energy consumption and generating savings, or they can acquire/purchase certificates available in the market to meet energy savings obligations.
Biodiversity credits
The international business community understands the need to act on biodiversity loss and ecosystem collapse. Biodiversity credits can help finance this action.
The World Economic Forum ranks biodiversity loss and ecosystem collapse as the third-largest global risk over the next ten years (behind extreme weather events and critical change to Earth systems) (1).
Potential use cases for biodiversity credits are:
- Enhance carbon credits for better nature outcomes.
- Access ecosystem services as inputs.
- Contribute to nature recovery beyond own impact.
- Offer products bundled with nature recovery.
- Take responsibility for unmitigated impacts on nature.
(1) The global risks report 2024, 19th edition, World economic Forum, January 2024.
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