The IPCC released its latest report on the state of the world’s climate and what the great nations of the world are doing in response to the changes we feel and see around us.
In light of the massive implications of this worldwide phenomenon, companies worldwide are being galvanized to action by new government initiatives.
One of those initiatives is the carbon credit system.
This article will discuss the carbon credit system, what it is, how it’s creating demand for sustainable practices, and how WtE leaders can take advantage of this trend and take center stage.
What Are Carbon Credits?
With the global climate situation becoming more urgent by the minute, governments implemented the concept of carbon credits to control carbon emissions through a market-oriented approach.
Simply put, carbon credits are permits issued by the government.
The government decides on a certain amount of carbon emission that a polluting entity can emit—entities, whether companies or countries, that pollute are assigned standardized carbon credits.
Two driving forces make the carbon credit system work: penalties and credit trading.
If a company’s emissions exceed the carbon credits that a governing body has placed on them, it will need to pay a certain amount in fines.
On the other hand, if a company has successfully reduced its carbon emissions and thus has a surplus of carbon credit, it can then sell those credits to other companies for a profit. The companies that get those credits will then have more leeway to emit until they develop their long term solution.
Overall, the goal is to eventually reduce our overall carbon footprint in the world. This way, governing authorities hope to create a balanced carbon worldwide emission that will lessen over time.
Carbon Credits and the WtE Industry
The carbon credits system provides further incentive for companies to shift to more carbon-neutral practices.
The waste-to-energy industry will become a necessary bridge for these companies to achieve their ESG goals and profit from the carbon credit system.
Environmentally-conscious entities will need to find a way to turn their carbon emissions into viable and profitable projects – areas in which the WtE industry excels. Thus, a significant uptrend will likely occur in the next few years.
However, a WtE business can only take center stage if it can fix critical issues inherent to the industry:
- Streamlining a fractured procurement process
- Creating sustainable and standardized operations
- Enhancing transparency throughout all phases of the WtE process
For most of these issues, digitization is critical. But not just any form of digitization – WtE businesses need a comprehensive and transparent one-stop-shop platform for the procurement process in their waste-to-energy projects to capture all the details in a reliable, consistent format.
One example is the EnMass Energy platform.
How EnMass Energy is Helping WtE Companies Cater to Demand Created by the Carbon Credit System
The EnMass Energy platform answers all the fundamental issues facing the WtE industry: the fractured procurement system, lack of transparency, and non-standardized operations that reduce output quality – the answer to all of these begins with a digital, unified platform like EnMass Energy.
With this platform, WtE projects can put all contact points into a single hub. This allows them to control and monitor the procurement process from one place. Meanwhile, affiliated vendors, producers, and processors receive instructions to ensure standardized and quality output throughout all procurement phases. And every step is documented and stored within the platform for analysis over time.
With EnMass Energy, WtE businesses can easily catch up to whatever market demands that the increasing number of carbon credit-conscious companies need to meet. See for yourself. Schedule a demo now!