![]() ![]() The price of permits has experienced significant growth. Companies receive or purchase emission allowances within this cap, and if they emit less than their allowance, they have the right to sell their surplus permits to others. This cap is progressively reduced over time to align with the EU's climate targets. Under the EU ETS, the European Commission sets an overall emissions cap, which represents the maximum allowable emissions within the EU's jurisdiction, covering key sectors such as power generation, manufacturing, and aviation. In the European Union, the compliance carbon market operates under the EU Emissions Trading System (ETS), a cap-and-trade system designed to limit greenhouse gas emissions across the continent. The carbon market can take two different but not mutually exclusive paths: a compliance carbon market and a voluntary carbon market. In this transition towards a net-zero economy, the role of carbon offsetting will be crucial. Consequently, the number of companies committed to reaching net-zero emissions has surged globally, with those taking action on such corporate targets quadrupling since 2020-from approximately 1,000 in 2020 to more than 4,000 in January 2023. The framework to achieve these global targets in the food and agricultural industry is outlined in initiatives like the Green Deal. Achieving the 1.5-degree target necessitates a reduction of global greenhouse gas emissions, with a goal of reaching a 50 per cent reduction from current levels by 2030 and attaining carbon neutrality by 2050. Unless we minimize CO2, methane, and other greenhouse gas (GHG) emissions, sea levels will rise, and the likelihood of catastrophic weather events will increase, impacting the food and agricultural industry.This article will examine the carbon market and will focus on Origin & Amsterdam, a portfolio company of ours, known for its sustainable sourcing and trading.įood plays a crucial role in combating climate change, encompassing factors such as dietary choices, agricultural practices, and the supply chain that connects producers to consumers. In contrast, reducing carbon emissions is a shared objective that unites the global food system. Here, we outline our perspectives on key themes that are relevant to the Food & Agri sector and explain how we try to make an impact with our portfolio companies and investment strategies.Ĭonsidering reducing your carb intake? While some individuals vouch for its effectiveness, others view it as a passing trend in nutrition. This article is part of a series of short LinkedIn blogs by the Food & Agri team of Anders Invest. Net-Zero Emissions: Driving Change in Food & Agri
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