We’re answering all your ES questions!
There’s a lot to learn in the environmental services industry. From deciphering the meaning of Internal Price of Carbon (IPCC) to understanding the best practice for an Environmental Impact Report (EIR), the solution is often essential for success -- and can be complex. FCS compiled our most frequently asked questions so far this year:
What is Carbon Pricing?
Carbon pricing includes a range of tools that help us legally drive decarbonization, providing financial incentives to transition to low-carbon alternatives. Carbon pricing acknowledges the costs to society that carbon emissions are created by climate change, air pollution, and other adverse effects. Governments implement carbon pricing through carbon taxes or cap-and-trade, or emissions trading systems.
What is an Internal Price of Carbon?
The IPCC is the value a company voluntarily sets to internalize the economic cost of its greenhouse gas (GHG) emissions. Companies use IPCC to guide their business and investment decisions.
Internal Carbon Pricing allows companies to assess the financial implications of their carbon emissions and encourage increased energy efficiency. This voluntary carbon pricing tool intrinsically complements governments' GHG emission-reduction policies to which companies are subject.
Internal carbon pricing generally takes one of three forms:
- An internal carbon fee - the market value of each ton of carbon emissions agreed upon by all departments in the organization.
- A shadow price - an estimated value on carbon to encourage low-carbon investment or decrease high-emission projections.
- An implicit price - based on how much it costs a company to implement emission-reduction projects, such as renewable energy purchases or compliance with fuel economy standards.
What are Carbon Offsets?
Carbon offsets reduce the amount of carbon dioxide companies and individuals are responsible for emitting into the atmosphere. Offsets are generated in multiple ways, such as: capturing and/or burning the methane (CH4) produced by farms or landfills before it enters the atmosphere, planting trees to absorb carbon dioxide (CO2) from the atmosphere, and improving energy efficiency to reduce energy use and lower corresponding CO2 emissions. Offsets are intended to make it easier and more cost-effective for organizations to pursue emissions reductions anywhere in the world.
What is an EIR?
An Environmental Impact Report (EIR) is an informational document that discloses potential significant environmental effects of a proposed project for the public as well as public agency decision-makers, identifying a reasonable range of alternatives that would reduce or avoid them. Find out other benefits that an EIR provides here.
What are Greenhouse Gases (GHGs)?
Greenhouse Gases (GHGs) are compound gases that trap heat or longwave radiation in the atmosphere. Their presence makes the Earth’s surface warmer. Sunlight or shortwave radiation easily passes through these gases and the atmosphere. Find out more about GHGs here.
FirstCarbon Solutions (FCS), an ADEC Innovation, comprises over 100 individuals offering due diligence, technical analysis, planning, environmental compliance, permitting, and mitigation/monitoring services for public and private projects. FCS has more than 30 years of experience navigating the complexities of CEQA and securing project approvals. To stay current on the latest trends in environmental planning and consulting, follow us on LinkedIn.