In today's climate-conscious business landscape, achieving net zero emissions has become crucial, especially for those looking to export their products.
But how exactly do you get there?
Reducing emissions is a critical first step. But many businesses are finding that carbon removals, particularly through forestry, play an essential role in reaching net zero. Forest carbon removals can be used as part of your net zero strategy - explore how below.
Understanding net-zero
Net zero means balancing the greenhouse gases your business emits with those you remove from the atmosphere. Imagine it as a scale: on one side are your emissions, and on the other are your removals. The goal is to make these equal.
Your emissions are categorised into three ‘scopes’:
Scope 1 Direct emissions from owned or controlled sources.
Scope 2 Indirect emissions from sources such as purchased energy.
Scope 3 All other indirect emissions occurring in your value chain.
While reducing emissions is crucial, completely eliminating them can be challenging, especially for businesses in agriculture and food production. This is where carbon removals can help to balance out the remaining emissions.
Emissions reduction strategies
Before we dive into removals, it's important to stress that reducing emissions should always be your first priority. This might involve:
Improving energy efficiency in your operations
Switching to renewable energy sources
Optimising transportation and logistics
Working with suppliers to reduce their emissions
These steps not only lower your carbon footprint but often lead to cost savings and improved operational efficiency. Sometimes, your emission scopes will overlap with those of your suppliers. For example, emissions from your Scope 3 could also be counted in a farmer supplier’s Scope 1 emissions.
Leveraging forest carbon removals in your decarbonisation journey
Once you've reduced emissions as much as possible, forest carbon removals can help you tackle the rest.
These can include:
Afforestation Planting new forests on land that hasn’t been forested for a long time.
Reforestation Replanting forests in areas that have been deforested.
Improved Forest Management Enhancing the carbon storage of existing forests through better management practices.
One of the best things about forest carbon removals, especially for businesses with farm suppliers, is that they could be sourced from within your own supply chain. The potential to work with your supplier farms to implement carbon forestry projects on their marginal land, to access the removals and use them as part of your carbon accounting. This approach not only helps you reach net zero but can also strengthen your relationships with suppliers and potentially provides them with an additional income stream.
Integrating Forest Carbon Removals into Your Net Zero Strategy
To effectively integrate forest carbon removals into your decarbonisation strategy:
Assess your potential Evaluate your supply chain. Do your suppliers have existing forest areas already removing carbon? Do they have land suitable for planting new forests that could meet the eligibility criteria for carbon removal projects? Are they willing to participate in a removals program?
Set realistic targets If you plan to plant new forests, it's important to remember that trees take time to grow. Carbon removals may only start being counted after the forests reach a certain maturity. Your removal capacity could increase over time, but may not immediately cover all your carbon needs. Remember, if registered in the NZ ETS, your forest carbon removals must be verified and tracked to ensure accuracy. Note that the Voluntary Carbon Market (VCM) may have different requirements from compliance markets like the NZ ETS.
Balance with reductions Continue focusing on emission reductions alongside your removal efforts. This is where you’ll make the most impact on your carbon footprint. Remember, forest carbon removals are best for balancing out remaining emissions, not as a solution to avoid reducing existing emissions.
Monitor and Report Progress Monitor forest areas for changes and ensure the removals are sufficient to stay on track to meet your targets. Use reliable systems, not spreadsheets, to report on progress over time. Consider having your forest carbon removal projects verified by a third party. Verified removals support transparency and help prevent issues like double-counting. Third party verification may also make it easier to comply with carbon markets like the NZ ETS or VCM.
What does this look like in practice?
Let's look at how a fictional company, NZ Dairy Co, could use forest carbon removals to achieve net zero:
NZ Dairy Co is a medium-sized dairy exporter in New Zealand. They started their net zero journey by calculating their emissions footprint and identifying where they could implement emission reduction strategies for easy wins. This included installing energy-efficient equipment and helping their supplier farms transition to renewable energy. These efforts reduced their emissions by 70%, but 30% of their emissions remained.
Determined to be carbon neutral, they turned to forest carbon removals. NZ Dairy Co collaborated with their supplier farms, providing funding to plant new native forest areas on marginal land. They worked with forestry experts to register these projects under the NZ ETS, following the necessary steps to assess forest eligibility, monitor growth, and verify carbon removals. Over 10 years, these forests gradually increased their carbon removal capacity.
The result? NZ Dairy Co achieved their net zero target by combining their 70% emission reduction with 30% carbon removals from forests on supplier farms. This approach not only helped them reach their goal but also strengthened their relationships with suppliers, and created additional income streams for the farms.
Getting Started with Forest Carbon Removals
Ready to explore how forest carbon removals can support your net zero journey?
Here are some steps to get started:
Assess your current emissions and reduction potential
Identify possible areas for forestry projects within your supply chain
Consult with forestry experts and carbon advisors to understand the potential and requirements
Develop a long-term plan that balances emission reductions and carbon removals
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Achieving net zero is a journey, and forest carbon removals can play a significant role in getting you there. Sourcing removals from within your supply chain can effectively incentivise farm suppliers while achieving your own decarbonisation goals.
If you’re starting your decarbonisation journey or planning your net-zero program, CarbonCrop can help. Reach out to learn how we can help you maximise the carbon potential of your land and supply chain.
Glossary
Afforestation: The process of creating new forests by planting trees on land that has not been forested for a long time.
Carbon Footprint: The total amount of greenhouse gases, including carbon dioxide and methane, that are emitted directly or indirectly by human activities, measured in carbon dioxide equivalents.
Carbon Neutral: A state in which the net carbon emissions of an organisation, product, or individual are equal to zero, achieved by balancing emitted carbon with an equivalent amount of carbon removal or offset.
Carbon Removals: Methods and processes that actively remove carbon dioxide (CO₂) from the atmosphere, often involving natural or technological solutions.
Decarbonisation: The process of reducing carbon dioxide emissions through the adoption of low-carbon technologies and practices.
Emission Reductions: Actions taken to decrease the amount of greenhouse gases released into the atmosphere from various sources.
Greenhouse Gases: Gases that trap heat in the atmosphere, contributing to global warming and climate change. Common examples include carbon dioxide, methane, and nitrous oxide.
Marginal Land: Land that is not suitable for intensive agriculture or development due to poor soil quality, steep slopes, or other factors, but can be used for purposes like forestry.
Net Zero: A state where the amount of greenhouse gases emitted is balanced by the amount removed from the atmosphere, achieving a neutral overall carbon footprint.
Residual Emissions: Emissions that remain after all possible measures to reduce them have been implemented.
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