The United Nations' climate experts,
the IPCC, have issued a stark warning:
if we don't limit global temperature rise to below 1.5°C
in the next 20 years, we'll face an increase in extreme events
like heatwaves, heavy rains, droughts, and wildfires.
These events will jeopardize global energy, water resources, food security, and housing. In response to this pressing challenge, nations have come to a consensus with the goal of achieving "Net Zero Emissions by 2050," all in an effort to curb the worsening effects of global warming.
Global Net Zero Policy in Full Swing
Taiwan
EU
World
2023
The Climate Change Response Act was legislated.
Listed companies with a capitalization
of over 10 billion, as well as the steel and cement industries, must initiate CFV.
2024
Listed companies with a capitalization
below 5 billion initiate CFV.
2025
Listed companies with a capitalization
between 5 and 10 billion initiate CFV.
2026
Listed companies with a capitalization
between 5 and 10 billion initiate CFV.
2027
All listed companies.
2023
On October, CBAM trial begins - importers
are required to submit carbon emissions-related data, but no fees are imposed.
2026
CBAM officially implemented -
importers must declare the carbon
emissions of their products and purchase
a "CBAM certificate" from the EU to
pay for the carbon emissions of their
products. (Initially applies to 5 emissions-intensive industries:cement, steel,
aluminum, fertilizers, and electricity.)
2034
CBAM fully implemented and expanded to other industries.
2035
All newly sold cars must be zero carbon emissions types.
2015
The UN adopted the 'Paris Agreement'
to limit carbon emissions
in order to mitigate the effects of global warming.
As of the present
Over 130 countries have pledged the
"Net Zero Emissions by 2050"
Having CFV Is a
Necessary Market Entry Strategy
To accurately evaluate greenhouse gas emissions and adhere to forthcoming EU and global import regulations, a comprehensive CFV program becomes essential.
What is CFV?
Carbon Footprint Verification (CFV) is a process designed to confirm and validate the accuracy of greenhouse gas (GHG) emissions data and claims made by individuals, organizations, or products.
CFV aims to provide assurance that reported carbon footprint calculations are reliable and contributes to reducing greenhouse gas emissions, thereby mitigating the impact of climate change.
The key components
of CFV include
Data Collection
Collecting data related to energy consumption, production processes, and transportation to identify the sources of carbon emissions.
Calculation
Employing standardized methodologies and emission factors to quantify the carbon footprint accurately.
Assessment
Examining the carbon footprint results to pinpoint primary emission sources and uncover potential opportunities for carbon reduction.
Action Plan
Utilizing these assessments to formulate effective carbon reduction strategies and establish targets for minimizing emissions to the greatest extent possible.
Monitoring
Regularly updating the data to monitor changes in the carbon footprint and making necessary adjustments to ensure the achievement of carbon reduction goals.
Why is CFV So Important?
-
Raising Awareness:
It enables people to comprehend how their actions, production methods, and consumption affect the climate. Carbon footprint data fosters a deeper understanding of the gravity of climate change issues, prompting proactive responses.
-
Monitoring Progress:
Carbon footprint verification enables governments, businesses, and organizations to track emissions for regulatory compliance, aiding Paris Agreement emission reduction goals.
-
Climate Change Mitigation:
Carbon footprint verification identifies emissions sources and devises strategies to combat global warming effects.
Tailored for Businesses
Comprehensive High Performance Servers
with NVIDIA GPUs
Tesla Carbon Credit
Sales Reach Record
$1.78 Billion in 2022
A comprehensive CFV helps businesses gain a clearer understanding of their emissions and effectively manage carbon credits. By reducing greenhouse gas emissions, companies not only reduce the cost of purchasing carbon offset credits, but also have the opportunity to sell excess allowances on the carbon market, thereby increasing revenue.
In August 2023, the Taiwan Carbon Credit Exchange was established, and it is expected to commence domestic and international carbon credit transactions in 2024. This means Taiwan joins the global carbon market, introducing new dynamics to businesses' net-zero strategies.
Through CFV, businesses can ensure compliance with ESG (Environmental, Social, Governance) standards and actively implement emission reduction measures to address the challenges of climate change.
Simultaneously, investors can utilize this information to evaluate the sustainability of their investments and support companies engaged in net-zero, achieving dual financial and environmental returns.
Hence, CFV is not only a key to achieve climate goals but also an indispensable part of fulfilling ESG objectives.
Acquiring an understanding of how to conduct CFV can contribute significantly to safeguarding our planet.
Net Zero Emissions
When the amount of greenhouse gases (GHG) released into the atmosphere is equal to the amount removed or offset, resulting in no net increase in emissions. Also known as “Carbon Neutrality”.
Carbon Trading
The buying and selling of carbon credits or allowances in a market.
Carbon Fee
A charge imposed on carbon emissions, typically intended to discourage greenhouse gas production and promote cleaner practices.
Carbon Footprint
The total amount of direct and indirect greenhouse gas (GHG) emissions produced by each stage of a product or service's lifetime.
Carbon Neutrality
Achieving a balance between emitted greenhouse gases and those removed or offset, resulting in no net emissions. Also known as “Net Zero Emissions”.
Carbon Tax
A cost imposed on businesses and individuals that functions like a 'pollution tax,' designed to reduce emissions by raising the cost of activities that involve carbon.
Carbon Credits
A permit which allows a country or organization to produce a certain amount of carbon emissions and which can be traded if the full allowance is not used.
Carbon Sink
A forest, ocean, or other natural environment viewed in terms of its ability to absorb carbon dioxide from the atmosphere.
CBAM
Carbon Border Adjustment Mechanism, a policy or mechanism that may impose carbon-related fees or regulations on imported goods to ensure they meet the same environmental standards as domestically produced products.