Global Carbon Emissions: What are Global Carbon Emissions and where do they come from?
There are both natural and human sources of carbon dioxide emissions, which stem from activities listed below.
- Natural sources:
- Decomposition, ocean release, respiration
- Human sources:
- Cement production, deforestation, burning of fossil fuels (coal, oil and natural gas).
Carbon dioxide emissions, primarily from the combustion of:
- Fossil fuels which have risen dramatically since the start
of the industrial revolution.
- Most of the world’s greenhouse gas emissions come from a relatively small number of countries.
- China, United States, and the nations that make up the European Union are the three largest emitters on an absolute basis.
Working Towards a Green Future: 2050 Net – Zero Emissions Goals
The number of countries announcing pledges to achieve net zero emissions over the coming decades continues to grow. The pledges by governments to date – even if fully achieved – fall well short of the requirements to bring global energy-related carbon dioxide emissions to net zero by 2050.
Transitioning to a net zero emissions goal:
- stable and affordable energy supplies
- universal energy access
- robust economic growth set out by a cost-effective and economically productive pathways
- clean energy dominated by renewables like solar, hydro and wind.
- To reach net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion.
- The Carbon Credit market is currently valued at $851B and is expected to grow to $22 Trillion by 2050
Carbon Credit Markets: Regulated vs Voluntary
- Set by “cap-and-trade” regulations at the regional and state levels.
- The regulatory market is mandated, while the voluntary market is optional.
- Each company operating under a cap-and-trade program is issued a certain number of carbon credits each year. Some of these companies produce less emissions than the number of credits they’re allotted, giving them a surplus of carbon credits
- Where businesses and individuals buy credits (of their own accord) to offset
their carbon emissions.
- Companies in this marketplace have the opportunity to work with
businesses and individuals who are environmentally conscious and
are choosing to offset their carbon emissions.
ESG Requirements and Regulations: Environmental, Social and Governance
- Criteria may include corporate climate policies, energy use, waste, pollution, natural resource conservation, and treatment of animals.
- The criteria can help evaluate any environmental risks a company might face and how its managing those risks.
- Considerations may include direct and indirect greenhouse gas emissions, management of toxic waste, and compliance with environmental regulations.
- Criteria look at the company’s relationships with stakeholders.
- Does it hold suppliers to its own ESG standards?
- Does the company donate a percentage of its profits to the local community or encourage employees to perform volunteer work there?
- Do workplace conditions reflect high regard for employees’ health and safety?
- Does the company take unethical advantage of its customers?
- Standards ensure company’s use accurate and transparent accounting methods, pursues integrity and diversity in selecting its leadership, and is accountable to shareholders.
- ESG investors may require assurances that companies avoid conflicts of interest in their choice of board members and senior executives, will not use political contributions to obtain preferential treatment, or engage in illegal conduct.
Agriculture in Canada: Canadian Companies and Emission Reduction
- Canadian firms have developed niche expertise in agricultural emissions reduction.
- Alberta has reduced over 20 million metric tons of carbon dioxide emissions and now, is one of the few places in the world to have successfully demonstrated large volumes of carbon credits can be generated from the agriculture sector.
- Building on their carbon market expertise, Canadian firms are now leading the development of cutting-edge systems for tracking sustainability in corporate
- Innovative technologies for minimizing waste are in development and
makes Canada a global leader in quantifying emissions reductions.
- Farmers will have the largest opportunities in the world to participate in
Canada’s carbon offset markets.
- iea.org – Net Zero by 2050, TCBN – TD Global Carbon Credit Index ETF
- Government of Canada - Enabling agricultural emissions reduction and sustainable supply chains
- CO2 Human Emissions