Zero carbon footprint. What does this really mean?
Zero carbon footprint refers to a situation where an activity, process, product or organization has no net emissions of carbon dioxide into the atmosphere. This is possible when the amount of CO2 introduced is equivalent to the amount of CO2 removed from the atmosphere.
Reducing carbon dioxide emissions results from the need to reduce the Earth's temperature to well below 2°C. Carbon dioxide as one of the greenhouse gases contributes to its increase. To mobilize European countries to take reduction measures, the following documents were adopted:
Paris Agreement
An international agreement that was adopted in 2015 as part of the United Nations Framework Convention on Climate Change (UNFCCC). The goal of the Paris Agreement is to limit the increase in global temperature to below 2 degrees Celsius above pre-industrial levels, and to strive to limit the increase to 1.5 degrees Celsius.
European Green Deal
A European Union initiative aimed at transforming the European economy into a sustainable, green system that will gradually reduce greenhouse gas emissions, including CO2. The European Green Deal includes a series of actions to achieve climate neutrality by 2050, meaning that net greenhouse gas emissions will be offset by removing or absorbing these gases from the atmosphere.
European Emissions Trading System (EU ETS)
This is a key European Union instrument for reducing CO2 emissions in the energy sector and in the industrial sectors that are subject to the system. The EU ETS sets a cap on CO2 emissions and then allocates appropriate amounts of emission allowances that can be traded. The European Commission is consistently implementing the reduction plan, introducing legal acts forcing an increasingly wide range of interested parties to take action. We are talking about a revision of the EU ETS directive, commonly referred to as ETS 2, which will cover buildings, road transport and industry not yet covered by the EU ETS directive. In the case of entities covered by ETS 2, emission fees will be imposed on the fuel supplier (in accordance with the polluter pays principle), who will record the amount of energy raw materials sold and purchase the appropriate amount of CO2 emission allowances. This means that the cost of operating the system will be passed on to the end user. The planned entry into force of the regulations is January 1, 2027, with the possibility of deferral until 2028.
Mitigation activities
World Resources institute, based on IPCC AR6, provides 10 key actions necessary to take to mitigate climate change.
These are:
• Moving away from a coal-based economy
• Investment in highly efficient renewable energy sources
• Modernization and decarbonization of buildings
• Decarbonize cement, steel and plastics
• Shift to electric vehicles
• Encouraging people to travel by public transport, on foot or by bicycle
• Decarbonization of aviation and shipping
• Stopping deforestation and restoring degraded lands
• Stopping food waste and improving agricultural practices
• Increasing the consumption of plant products, reducing the consumption of meat foods.
How can an entrepreneur find his way in this situation?
Even if it now seems that counting the carbon footprint may be considered a "new fashion", any day it will become an obligation comparable to that imposed on entrepreneurs in connection with the preparation of financial statements.
The reliability of the reported data regarding non-financial reporting will be verified by a statutory auditor or audit firms, which results from the CSRD directive. (This directive entered into force on January 5, 2023. Member States have 18 months to implement it. In the case of Poland, it will be implemented through changes to the Accounting Act by July 6, 2024).
The carbon footprint is an element of non-financial reporting and each company obliged to report, in accordance with ESRS standards, will report its amount.
The pursuit of achieving a zero carbon footprint must be preceded by previous steps required by non-financial reporting standards, i.e. calculating the carbon footprint, establishing a reduction plan and offsetting unavoidable emissions.
A systemic approach to the issue of carbon footprint calculation will allow entrepreneurs to be competitive against other enterprises.
Sources:
https://www.europarl.europa.eu/topics/pl/article/20191115STO66603/ue-i-porozumienie-paryskie-w-strone-neutralnosci-klimatycznej
https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets/ets-2-buildings-road-transport-and-additional-sectors_en?prefLang=pl
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