Coal Plant

CO2: We Must Pay Our Debts

The EU Emissions Trading Scheme has been widely criticized. But after its revamp last year, emitting greenhouse gases will begin to cost more – and outdoor companies can participate voluntarily.

Most people would agree that the basic idea is a good one: In 2005, a cap was set for greenhouse gases across the entire EU, including Norway, Iceland and Liechtenstein. Each country received an annual quota, which was then distributed to their respective energy-intensive industries and operations. If a company emitted more than their quota, they were required to purchase new emissions allowances from a common market. In turn, the price per ton greenhouse gas (in CO2 equivalents, or CO2e) would increase incrementally. This would eventually make it more profitable to reduce emissions than to purchase new emissions allowances. The system was named the EU Emissions Trading Scheme (EU ETS). Problems began to appear during the first phase, whereby too many quotas were distributed and unused allowances could be saved by companies for the following year. In practice it cost almost nothing to continue as normal. In order for the EU to have a reasonable chance of living up to its climate goals, the system had to be renovated. In 2017, a new system was legislated that enters into force in 2021. From this point on, the total number of allowances will decrease by 2.2% each year, and from 2023, it will no longer be possible to build up large reserves.

Voluntary contributions

Most actors within the outdoor industry currently do not fall under mandatory participation in this scheme, either because their emissions are below the minimum threshold or their manufacturing is based outside the EU. This might soon change, however, as the EU ETS’ coverage continues to expand and as countries like China and India have emissions trading schemes of their own that are now coming into effect. In the meantime, companies and even individuals can voluntarily make use of the EU ETS, as a means of offsetting their carbon emissions. This is done quite simply by purchasing emissions allowances, then “deleting” them so that other polluters cannot use them. Several third-party providers offer this service (eg. chooose.today) enabling a company to take responsibility effectively, even if it is not forced to do so.

Jonathan Eidse
jonathan.eidse@norragency.com


More Stories

Aku Launches “Impacto”

Aku offers retailers Impacto, the first manual of its kind that estimates CO2 emissions from outdoor footwear. The issue of environmental impact will continue to be a central topic in the outdoor industry.

By AKU

‘Impossible to meet climate goals if we keep mowing down forests for boxes and t-shirts’

Most people won’t climb K2. What are the environmental and inclusivity implications of over-engineering gear as if they will?

By Nicole Rycroft

A deforestation-free call to action for the leather industry

Global non-profit Textile Exchange’s Deforestation-Free Call to Action for Leather initiative is a rallying cry for companies to commit to sourcing their bovine leather from deforestation-free supply chains by 2030 or earlier. But is it “too little, too late” for our rainforests?

By Hannah Mitchell

2022/23 ski season “a wake-up call”

From shockingly low snowfall in the Alps to headline-making climate action, outgoing president of Protect Our Winters Europe, Sören Ronge, reflects on the epic winter of ’22-’23 – and what’s in store moving forward.

By Sören Ronge

More News

Suston Monthly Newsletter

We all know about the problems - Suston uses constructive journalism to help guide, inspire and push the outdoor community towards finding and enacting the solutions.

Receive the latest stories each month by signing up for the Suston Monthly today!

Sign up