Glossary

The Inflation Reduction Act of 2022: Tipping the Scale Toward Clean Energy

The Inflation Reduction Act of 2022: Tipping the Scale Toward Clean Energy

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, Vice President, Marketing
 484.415.7603 or nmarshall@climeco.com

The Inflation Reduction Act of 2022: Tipping the Scale Toward Clean Energy


by: Erica Lasdon | August 30, 2022


Boyertown, Pennsylvania (August 30, 2022) –
Sweeping legislation signed into law this month by President Biden will allow for unprecedented investments to decarbonize the nation’s economy. The Inflation Reduction Act (IRA) earmarks the bulk of its $490 billion spending on clean energy and climate change mitigation initiatives.

Combined with other recent spending bills, the U.S. government is set to begin a period of transformative investments. The Rocky Mountain Institute, a clean energy think tank, notes that the combined bills will more than triple annual real federal spending compared with recent years, which was already elevated from levels of the 1990s and early 2000s. 



While the IRA is far from perfect, advocates say it provides extraordinary opportunities for the conservation of our nation’s lands and waterways and includes significant resources for restoring wildlife habitats and forests. 

The legislation is expected to reduce U.S. greenhouse gas (GHG) emissions to approximately 40%, compared to 2005-levels, by 2030. Without enactment of the IRA, the U.S. was on course to reduce its GHG emissions to only 26%, compared to 2005-levels, over this period, according to an analysis from the World Economic Forum

For the U.S. to reach its emissions-reduction targets, it’s imperative that we begin to take action across the entire technology adoption curve. This means exploring: 

  • Existing technologies that are ready for market but not deployed. 
  • Solutions that require some further development to be market ready. 
  • Technologies that are only prototypes and need significant development.


Importantly, IRA resources will focus on the most hard-to-abate industrial sectors, such as electric power generation. 

As widely reported, the IRA is projected to drive significant emissions reductions in the electric power sector. To a certain extent, this can lower production emissions in steel, cement, and other carbon-intensive industries. However, practical options to capture carbon from industrial processes and traditional energy production require substantial investment to help meet climate goals. The IRA addresses these challenges by creating incentives through a system of grants, loans, and tax credits, including making certain existing credits larger and more durable. 

Here are a few key IRA provisions for companies and investors to be aware of:

  • Changes to 45Q, the existing tax credit for carbon capture and storage (CCS), make it more profitable and easier to access. Companies will be able to earn $85 for every metric ton of CO2 sequestered, rather than $50/ton previously. (The amount earned is less if the CO2 is buried during oil extraction.) The timeline is more favorable too. Previously, a company had to start building capture equipment by 2026. Now it’s 2033. The IRA also significantly lowers the minimum capture requirement.

  • Methane emissions are an urgent issue for many industries, as this type of emission is far more potent than carbon dioxide and hard to detect. For the oil and gas industry, investments in methane detection and a first-time federal fee on methane emissions will amplify existing initiatives within industry to tackle this problem. The IRA also funds grants, rebates, loans, and other assistance to facilities subject to the methane fee for a variety of measures, including adding or improving equipment and processes that reduce methane emissions.

  • Other long-term tax credits include clean hydrogen fuel development, direct-air-capture deployment, and advanced nuclear projects for heavy industry.

By driving down the cost of clean energy and other climate solutions, this approach may make it easier for companies and local governments to increase their climate ambitions. 

Regardless of your business’s sector, you will feel the impact of the IRA and related legislation. As the landscape shifts, companies and investors should factor an increasing rate of technological and systems change into their future plans. 

Deep decarbonization is complex work that requires a diverse set of policy, legal, technology, and market solutions. Forthcoming investments by the U.S. government seek to put the country on a net-zero pathway. Importantly, investors and corporations have many tools available to assess their pathways to net-zero.  

Since our founding, ClimeCo has been a leading transformation partner to companies, investors, and governments pursuing a low-carbon future.  As a vertically integrated sustainability solutions provider, we have enabled our clients to go beyond business as usual. By developing frontier technology- and nature-based carbon-reduction projects, transacting voluntary and compulsory environmental credits, and advising on climate risk and disclosure, our team is dedicated to implementing decarbonization pathways tailored to our clients’ specific sectors, business models, and balance sheets. 

Please get in touch with us if you want to learn more about our: 

  • Complete range of ESG Advisory solutions that help companies improve readiness and resilience in the ever-changing regulatory environment. 

  • Project Development capabilities around high-quality carbon projects that feature strong engagement with our project partners, local stakeholders, carbon registries, and credit buyers.
  • Environmental Credit offerings from projects we develop and projects we invest in.


About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products, projects, and related services. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs. Complementing these programs is a team of professionals skilled in providing sustainability program management services, and developing and financing of GHG abatement and mitigation systems.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com. Follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.

Dispatches from the Nature-Based Solutions Conference

Dispatches from the Nature-Based Solutions Conference

Dispatches from the Nature-Based Solutions Conference


by: Emily Romano | August 25, 2022

Site visit by ClimeCo at a reforestation project in Louisiana

Nature-based solutions (NBS) are an important part of the work we do at ClimeCo, and they are a growing sector of carbon markets. NBS are defined as actions that restore, manage, and protect natural habitats for societal benefit, including mitigation and adaptation to the effects of climate change. These activities, such as reforestation, peatland rewetting, or grassland management, have received extensive media coverage in recent years and months as they play an increasingly important role in many corporate and national climate plans. Successful NBS projects have the potential to achieve a trifecta of climate, community, and biodiversity benefits, while poorly designed projects are rightfully criticized as a step backward for climate goals, human rights, and ecosystem health.

With this context in mind, I attended the Nature-based Solutions Conference in Oxford, UK, in July 2022, hosted by researchers at the Nature-based Solutions Initiative. Held in the beautiful Oxford University Museum of Natural History, the conference attracted a wide range of researchers, policymakers, activists, NGO members, and practitioners. Sessions addressed topics such as the global status and criticisms of NBS, inclusive project governance and narratives, improved biodiversity outcomes, the economics of NBS, and applications for urban environments.

I learned a lot from the speakers, whose presentations addressed the conference’s central question: “How can we ensure that NBS support thriving human and ecological communities?” In this blog, I summarize and share the key messages I took home from this conference.

Bodleian Library, Oxford University


Key Takeaways

Concern for Low-Quality NBS

With careful planning and consideration, NBS projects can provide powerful, sustainable, and cost-effective benefits to their host communities. Unfortunately, a number of low-quality NBS projects around the world have failed in recent decades. These failures are almost always due to protocols with inadequate provisions for permanence and additionality or a lack of robust safeguards of human rights and biodiversity.

The conference explored numerous concerns surrounding low-quality NBS, primarily those voiced by Indigenous and local communities regarding projects that have caused and perpetuated human rights abuses. These include land tenure injustice, displacement of people and livelihoods, and denial of community access to natural resources. This sort of project is often characterized by a top-down design without the active participation of the local community, prioritization of western value systems, and a lack of transparency or long-term monitoring requirements. Low-quality projects often result in ecosystem failures due to inappropriate species selection or project location or the establishment of monoculture plantations without regard for local biodiversity.

An additional concern voiced at the conference was that NBS not be used in greenwashing schemes by polluters to replace decarbonization efforts. While ecosystems play an important role in climate change mitigation and adaptation, they are not capable of compensating for delayed emissions reductions in other sectors. Speakers also highlighted the moral hazard of entities from the Global North who might seek to export the responsibility and the work of decarbonization to the Global South.

These concerns are critically important for improving NBS project outcomes. The conference’s primary focus was on how to address these concerns and included many examples of current best practices from around the world.

Tradeoffs, Inclusive Project Design and Governance, and Narratives

While many NBS projects generate desirable co-benefits or “win-win” results for society and biodiversity, projects may also generate tradeoffs that create tension between competing project goals. For example, biophysical tradeoffs might occur if a project prioritizes one ecosystem service at the expense of another. Social tradeoffs might occur between stakeholders with different cultural or spiritual valuations of nature or between those with scientific knowledge and those with Indigenous knowledge. Project developers must acknowledge and mitigate these tradeoffs in partnership with local stakeholders to account for the full range of project impacts.

One strong message from the conference was the critical role that Indigenous and local community members must play in all stages of NBS projects and the importance of free, prior, and informed consent. Numerous speakers pointed out that many Indigenous groups have traditionally implemented successful NBS within their own communities, and their knowledge can fill critical gaps in scientific understanding. The inclusion of these groups from the design to the implementation to the monitoring stage of a project is not only a basic indicator of respect but can also tangibly improve project outcomes.

Indigenous and community leaders from numerous countries, including Zambia, China, Tanzania, Peru, and the Democratic Republic of the Congo, presented case studies illustrating successful NBS outcomes in their communities. These presentations called for projects to distribute benefits equitably among community members, ensure a living wage, and create sources of long-term finance controlled by the local community. Finally, the speakers emphasized the critical importance of land tenure for Indigenous peoples.

ClimeCo meeting indigenous workers at a mangrove reforestation project in Indonesia

How to Prioritize and Adequately Represent Biodiversity

Another conference theme was the need for better metrics of biodiversity, so that progress can be adequately represented in project designs and monitoring plans. Speakers highlighted several scientific and technological advances, such as ecosystem DNA and high-resolution carbon mapping tools, which would facilitate project area prioritization and robust biodiversity assessment if implemented at scale.

However, some speakers quickly pointed out that “technology is not the solution. We are the solution.” In this vein, multiple speakers recommended that biodiversity monitoring plans utilize community monitoring approaches, including input from local and Indigenous groups regarding biodiversity metric selection.

Mangrove nursery managed and developed by the local community near the reforestation site

Creating High-Quality NBS

The conference delivered a crystal-clear message that projects that do not include robust provisions for human rights and biodiversity do not fall under the umbrella of the NBS term.

To avoid the pitfalls of low-quality projects, reputable carbon offset registries have developed meaningful standards for additionality and permanence and protocols that include protections for human rights and biodiversity. The most important feature of these protocols is that registries update them when a loophole is identified. Although these updates require months or even years to go into effect, this process allows registries to enforce ever-evolving concepts of “best practice.” For this reason, carbon offsets generated using the protocols of reputable registries, such as the Climate Action Reserve, Verra, the American Carbon Registry, and Gold Standard, are categorically distinct from low-quality offsets.

Regardless of protocol requirements, project developers are responsible for designing projects that adhere to best practices and meaningfully address the concerns of Indigenous and local stakeholders. Within the voluntary carbon market, project developers and carbon credit end-users must be able to recognize the indicators of a high-quality project and must be selective in the projects they choose to support.


ClimeCo’s NBS Approach

As offset project developers, the ClimeCo team always listens for new perspectives on best practices. We believe that NBS projects have enormous potential when they are designed carefully to empower and give voice to local communities. As sustainability advisors, we also feel a keen responsibility to help clients decarbonize wherever possible. Our ESG Advisory team provides many services essential to clients at any stage of their decarbonization journey. We encourage the use of offsets to address emission sources that are difficult or impossible to abate as a part of a larger decarbonization plan.

Most importantly, we understand there is no one-size-fits-all approach to NBS project development. We are grateful for each opportunity to earn a community’s trust and seek partners who share our accountability and responsible stewardship values.

ClimeCo’s Dr. Scott Subler observing freshly planted Bald Cypress saplings

Conclusion

I left the conference inspired by the incredible work being done worldwide to improve the implementation of NBS. ClimeCo will continue to listen and apply the guidance and feedback of the global NBS community, and I cannot wait to see the good our projects can do. ClimeCo is committed to informing you of new information discovered as we continue to explore in-depth NBS concerns. We welcome comments or questions surrounding this topic.

Anyone interested in watching conference sessions can access recordings and PDFs of presentations on the conference website (I recommend Session 4 and Session 9A). For those curious to see examples of high-quality projects, the Nature-based Solutions Initiative’s organizers directed us to their Case Study Platform, a map-based tool with over 100 examples of projects from around the world that meet the researchers’ quality standards.

 


About the Author

Emily Romano is a Project Manager at ClimeCo based in San Francisco. Within Project Development, she applies a background in climate, ecosystem, and soil science to her work managing NBS projects. She holds a Master of Science in Environmental Science and Policy from Northern Arizona University and a Bachelor of Science in Geology from Syracuse University.

ClimeCo Partners with YAKOPI and PUR Projet for Mangrove Reforestation Project in Indonesia, Bolstering the Ecology and Economy of the Region

ClimeCo Partners with YAKOPI and PUR Projet for Mangrove Reforestation Project in Indonesia, Bolstering the Ecology and Economy of the Region

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, Vice President, Marketing
484.415.7603 or nmarshall@climeco.com  

ClimeCo Partners with YAKOPI and PUR Projet for Mangrove Reforestation Project in Indonesia, Bolstering the Ecology and Economy of the Region

ClimeCo’s Nature-Based Carbon Offset Credits to Fund 6,000 Acres of Mangroves in Aceh and North Sumatra Regions Decimated by Aquaculture and Tsunami

Women working on YAKOPI and Pur Projet mangrove restoration project

Boyertown, PA – April 4, 2022 – ClimeCo, a leader in the development and management of environmental commodities, announces its partnership with YAKOPI (Yayasan Konservasi Persisir Indonesia) and PUR Projet for the reforestation of vital mangroves in the Aceh and North Sumatra Regions of Indonesia.

Mangroves sequester three to five times the amount of carbon as regular forests. Indonesia is home to over 20% of the world’s mangroves. In the last three decades, roughly 40% of Indonesia’s mangroves have been lost due to shrimp and fish aquaculture, leaving many former shrimp ponds abandoned and local communities with little access to economic opportunities. The North Sumatra region has lost 60% of its pristine mangroves due to aquaculture, putting coastal resilience, biodiversity, and wildlife habitats at enormous risk. Aquaculture isn’t the only culprit in the loss of mangroves; in the Aceh region, a substantial amount of its mangroves were lost due to a tsunami in 2004.

ClimeCo will fund the reforestation of these mangroves by selling the resulting third-party verified carbon credits and implementing the project through their local partnerships with YAKOPI and PUR Projet. This investment will support gender-equitable employment, ecosystem services payment to local communities, ecotourism business development, and a pilot program for locals to implement silvofisheries- a form of sustainable aquaculture that integrates planting and maintenance and protection of mangrove forests in aquaculture ponds.

The improved livelihoods of the local communities and the long-term success of this mangrove reforestation project are interdependent- with the support of our partnerships, this project has all the right elements to achieve both,” says ClimeCo Program Development Manager David Chen

Participants in the voluntary carbon markets are becoming more aware of the environmental, social, and economic co-benefits of mangrove reforestation/conservation projects, and demand for these carbon offsets is accelerating.

For years, clients have looked for ways to support carbon emission reductions in the oceans.  Mangrove projects offer a locally beneficial, third party verified, registry approved method to do so,” says ClimeCo Vice President, Voluntary Markets Dan Linsky.

Man sitting on mangrove restoration field

ClimeCo has witnessed substantial, diverse, global interest in the purchase of mangrove projects from its carbon offset buyers. Such interest has been expressed during ongoing conversations, and as such, ClimeCo has transacted hundreds of thousands of mangrove-derived voluntary CO2e reductions so far in 2022.

Such interest is grounded in corporate and consulting staff recognition of the charismatic, abundant, substantial, and important co-benefits of mangrove projects. From shoreline protection to habitat restoration, generating new jobs to rebuilding food supplies, the seemingly endless list of mangrove restoration impacts in addition to carbon capture and storage has been very moving to carbon offset purchasers. These benefits represent why ClimeCo has approached this project and so many of its past projects with enthusiasm: These projects are more than just carbon reductions; we are looking to go beyond.

About Our Partners

  • YAKOPI is a local Indonesia group dedicated to restoring mangroves and providing employment opportunities for local women and youth. Directed by Eling Tuhono, YAKOPI are experts and local leaders in mangrove restoration and will be responsible for managing many logistical aspects of the program on the ground.
  • PUR Projet is a certified B Corporation that specializes in designing and implementing agroforestry projects, nature-based solutions, and sustainable supply chain interventions. As an on-the-ground project developer, PUR Projet will manage components of the carbon offset certification, help navigate local culture/politics and advise on reforestation efforts.

About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related services. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs.  Complimenting these programs is a team of professionals skilled in providing sustainability program management services, and developing and financing of GHG abatement and mitigation systems.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our “contact us” page at climeco.com. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.

ClimeCo Expands Project Development Leadership with the Hire of Erika Schiller

ClimeCo Expands Project Development Leadership with the Hire of Erika Schiller

NEWS RELEASE
FOR IMMEDIATE DISTRIBUTION
CONTACT
Nancy Marshall, Vice President, Marketing
484.415.7603 or nmarshall@climeco.com 

ClimeCo Expands Project Development Leadership with the Hire of Erika Schiller


BOYERTOWN, Pennsylvania (March 1, 2022) – ClimeCo announces the expansion of its leadership team with the hire of Erika Schiller as Vice President of Project Development. She will lead the team, spanning new methodology development, consulting, and project management to assist customers, create measurable environmental benefits, and generate environmental credits.

“ClimeCo represents energy-intensive industries that have unique decarbonization challenges,” says William Flederbach, President and CEO of ClimeCo. “We are building our team and leveraging a proven track record of thirteen years to meet our customer’s needs. Erika will expand and support cutting-edge decarbonization strategies by leveraging our finance, design, and build expertise. In 2022 and beyond, investing in low carbon technologies is paramount to achieving our aggressive global climate goals, and I couldn’t be more excited to have Erika leading this practice.” 

Schiller will build on ClimeCo’s strengths in industrial greenhouse gas (GHG) management, nature-based solutions, such as reforestation and composting, and plastics mitigation. Additionally, she’ll look to expand in other industrial spaces like low-carbon cement, renewable natural gas, and carbon capture use and storage (CCUS). She excels in taking customer-focused approaches to business development and growing new business lines.

“ClimeCo was compelling to me because of their market-based approach to tackle environmental challenges,” says Schiller. “I see a strong business case for measuring and delivering GHG reductions, and other benefits for a world focused on how to achieve net-zero this century. ClimeCo is poised for growth, and I’m excited to contribute my expertise to their strong foundation.”

Before joining ClimeCo, Schiller worked in the low-carbon energy industry for ten years, spanning energy storage to renewable fuels and carbon capture use & storage with Chevron. She helped Chevron launch its renewable natural gas business, forming two joint ventures in dairy RNG production. She then moved to their corporate strategy and sustainability team, where she led the commercial strategy for a new CCUS global business line and supported the start-up of their New Energies business unit. 

Schiller earned her Master of Business Administration from Georgetown University, McDonough School of Business, and her Bachelor of Science from Vanderbilt University.

About ClimeCo

ClimeCo is a respected global advisor, transaction facilitator, trader, and developer of environmental commodity market products and related services. We specialize in voluntary carbon, regulated carbon, renewable energy credits, plastics credits, and regional criteria pollutant trading programs.  Complimenting these programs is a team of professionals skilled in providing sustainability program management services, and developing and financing of GHG abatement and mitigation systems.

For more information or to discuss how ClimeCo can drive value for your organization, contact us at 484.415.0501, info@climeco.com, or through our website climeco.com. Be sure to follow us on LinkedIn, Facebook, Instagram, and Twitter using our handle, @ClimeCo.

A Balanced Approach

A Balanced Approach

A Balanced Approach


by William Flederbach, President & CEO | September 30, 2020


Life is about balance.
Our fight against climate change must also be balanced.

At ClimeCo, we balance our investments on all types of projects that mitigate greenhouse gas (GHG) emissions.  From sequestering carbon with nature-based solutions (NBS) like grassland preservation, reforestation, and mangrove re-establishment, to destroying it at manufacturing sites before it ever gets emitted into the atmosphere, we strive for a balanced approach to addressing climate change. 

Our first focus as a company is on destroying GHGs before they ever have a chance to be emitted into the atmosphere.  This results in a permanent, non-reversible reduction that offers assurances to our clients.  So why is this approach to climate change not as popular in the marketplace?  Why does the market prefer to sequester GHGs from the atmosphere after they have already been emitted than trying to prevent them from making it that far in the first place?  Imagine how much easier it would be to knock it out at its origin than to chase it down later.  To us, the proper approach requires a balance of both – destroying the GHG molecules before they are emitted to the atmosphere and then sequestering any unavoidable emissions that occur.

 

The Facts

The USEPA publishes world-wide sources of GHG emissions by major economic sector.  The USEPA reported that destructive patterns of land use account for 24 percent of human-caused GHG emissions (See Figure 1).  Of this, deforestation and forest degradation account for 17 percent of global GHG emissions. 

 

Figure 1 – Sources of GHG Emissions (USEPA)


At the same time, studies by the Global Carbon Project revealed that 45% of the GHGs emitted to the atmosphere are retained there, with only 55% being sequestered by land and oceans (See Figure 2).

 

Figure 2 – Fate of Carbon Emissions (Global Carbon Project)


Since nearly half of all GHGs will remain in the atmosphere for long periods of time, never to be sequestered, this supports the absolute need for a balanced approach: stop what you can from entering the atmosphere while increasing land-based solutions to enhance sequestration for the rest.  It’s that simple… right?

 

Nature-Based Solutions

NBS has become the buzz phrase recently but these practices, such as proper forest stewardship and regenerative agriculture, are not new and have been in place at some level for decades.  In fact, at the heart of the Chicago Climate Exchange (CCX), which was founded in 2003, was the Continuous Conservation Tillage and Conversion to Grassland protocol.  I grew up in the country where farmers would rotate crops between corn and soybeans, and we understood this helped to keep the soil healthy (not to mention its positive impact on our corn maze adventures!).  Now, this solid farming stewardship is considered fundamental to regenerative agriculture.

Today, there has been a renewed focus on at-scale reforestation efforts (such as ClimeCo’s partnership with Restore the Earth), grassland preservation and restoration, mangroves re-establishment, regenerative agriculture, and more.  These all play a critical role in combatting climate change.

 

Reversal Risks

California, under the Assembly Bill 32 Cap-and-Trade program, has issued over 151 million tonnes of carbon offsets (in the forestry sector) since its inception 8 years ago. The California Government Wildfire Report, states that, as of September 28, 2020, there have been over 8,100 fires this year that have consumed more than 3.7 million acres.  According to the European Centre for Medium-Range Weather Forecasts, as of September 13, 2020, CO2 emissions from wildfires have reached about 83 million metric tonnes.  That is the highest level recorded since recordkeepings began in 2003.  The forest fires on the west coast are certainly exacerbated by climate change, as they are being fueled by two common contributors – dryer conditions and stronger winds.  Unfortunately, this will only get worse in the years ahead.  It is a sad story that highlights natural reversal risks in fire-prone areas of the country.

In addition to wildfires and other natural disasters, the intentional and illegal reversal of forests also occurs within countries wrought with political risk and unclear land rights.  For example, one only needs to look to Brazil, where a horrific tale of illegal deforestation is occurring.  According to conservation groups, deforestation in this region has soared since the Brazilian President, Jair Bolsonaro, took office last year.  Numbers released by the Amazon Deforestation Satellite Monitoring Project, a high-resolution system operated by INPE that produces Brazil’s official deforestation data, showed that 10,100 km2 of forest were cleared between August 2018 and July 2019, a 34% increase from the previous year. Imagine being an investor in forest carbon offset projects in Brazil; would you feel comfortable that you had made a sound investment, an investment that was going to help combat climate change?

Do the risks of accidental or intentional reversal mean that we should not pursue forest or other very important NBS projects?  No, I would argue that these examples are more reason to invest in projects to enhance NBS carbon sequestration.  That said, when making your investments, understand thoroughly how the methodologies account for reversal risk, and be sure to identify both the geographical and political risks.

 

Permanent GHG Removal

Removing GHGs at the point of origin has always been a major focus for ClimeCo.  We like this approach because of the permanent, non-reversible solution it provides us in the fight against climate change.  To-date, ClimeCo has stopped over 20 million tonnes of CO2e from entering the atmosphere, and we are just getting ramped up!  Our expertise includes nitrous oxide abatement at nitric acid plants, ozone-depleting substance (ODS) destruction, methane capture and use, methane avoidance (composting), and more. These projects have no reversal risks and are of the highest quality.  ClimeCo has recently leveraged its N2O experience to lead the development of the Climate Action Reserve (CAR) Adipic Acid Protocol, which was approved by the CAR Board on September 30th.  This project type will abate an additional 5-10 million tonnes of CO2e annually in the United States.  Adipic acid is used to produce high performance plastics, including plastics contained in automobile airbags and light weight plastic in electric vehicles.  ClimeCo is also designing and building additional nitric acid (primarily used in fertilizer production) N2O abatement projects across North America.  We will soon exceed 15 million tonnes per year of CO2e abatement.

Imagine if these projects had not happened and this GHG loading had entered the atmosphere.  This would mean that, in the absence of ClimeCo’s efforts, to-date there would be an additional 20 million tonnes of CO2e in the atmosphere and, over the next decade, another 150 million tonnes or more impacting our climate.  If we were to rely only on sequestering, like as in a reforestation project, to reverse 170 million tonnes of CO2e, it would require in today’s marketplace a total of 850,000 acres at an average price of $12/tonne (forestry credit prices currently range from $8-15/tonne), resulting in a total cost of around $2,040,000,000.  By comparison, the same impact could be realized for far less cost with no reversal risk from ClimeCo’s GHG abatement technologies.  

So, my point is that there needs to be a balance of both permanent destruction of GHG molecules and sequestration in the marketplace for us to achieve our climate goals.  Relying on just one method will not get us there but finding the balance between the two can.

About the Author

William “Bill” Flederbach cofounded ClimeCo in 2009 and has grown the business rapidly over the past 10 years.  Before starting ClimeCo, Bill managed the air quality practice at O’Brien and Gere (OBG), and worked and managed the international carbon markets at MGM International and AgCert.  He is a graduate of Pennsylvania State University and the Smeal College of Business at Penn State.