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Many organizations are taking action to reduce greenhouse gas emissions and by offsetting their emissions by purchasing carbon credits. ECO2ASSET SOLUTIONS is often asked why companies are voluntarily reducing greenhouse gas emissions and buying carbon offsets when they are not required to do so by law. According to a report published by Ecosystem Marketplace and New Carbon Finance, the top reasons include corporate social responsibility, public relations, and to demonstrate to their customers that their product is “greener” than their competition.

WHY ARE CORPORATIONS AND INDUSTRY ACTING NOW?

A national climate change policy is eminent with a likely bill being on the books by May 2009. Therefore, high greenhouse gas emitting organizations will need to be ready for legislation. At the core of compliance, a comprehensive greenhouse gas inventory will be required to serve as a baseline by which to measure reductions and will be used to demonstrate compliance. To date, these organizations have participated in voluntary climate change programs (e.g., Climate Leaders, The Climate Registry, and USDOE 1605b) that require annual greenhouse gas inventories. Companies do inventories not only to understand their liabilities associated with their emissions, but also to show corporate social responsibility to their shareholders and consumers. In addition, many companies are responding to the growing demand for green products by which consumers are increasingly interested in green products and “eco-labeling” is one set their product apart from their competitors.

WHY ARE LANDOWNERS ACTING NOW?

While landowners are not anticipated to be a covered sector in climate policy, landowners are still interested in understanding their emissions for the same reasons as corporations are interested (namely to show in corporate social responsibility). Pertinent greenhouse gas emissions sources include cattle (i.e., enteric fermentation and manure); land applications (i.e., nitrogen fertilizer, lime, and urea); and emissions associated with land use and land use conversions (i.e., agriculture, forestry, grasslands, and development). In addition, landowners of forests and farms are in a position to be a part of the solution, namely to increase greenhouse gas removals through increased carbon sequestered in forests, grasslands, and soils. These actions will provide additional revenue streams to foresters and farmers.

WHY ARE MUNICIPALITIES ACTING NOW?

As of January 2009, 911 U.S. Mayor’s representing over 82 million Americans have signed the Mayor’s Climate Protection Agreement. By signing, the Mayor commits to Three Actions:

In order to reduce emissions, a city must determine their baseline, which means they must conduct a greenhouse gas inventory. The goal should not be to just inventory, but rather the inventory should be used to identify and model reduction measures, formulate a climate action plan, and monitor progress.