Sales of clean air is a rapidly evolving business so companies can offset their polluting gas emissions and sell their sustainability to their shareholders and society. Given this growing business and the potential offered by the Galician mountains, Xunta decided to take action to try to regulate the market in the community. To do this, it will legally establish a carbon exchange to facilitate the link between buyers and sellers of this intangible good. Galicia Thus, it will have its own system differentiated from the state registry.
The Draft Law for the Promotion of the social and economic benefits of projects using natural resources in Galicia, supported by Xunta, envisages precisely “to promote the development of projects and activities aimed at self-development”. increase carbon sequestration and emission reduction greenhouse gases to contribute to achieving “carbon neutrality”.
This document specifically and for the first time includes the creation of: “Xunta’s voluntary carbon credit systemact as a link between operators or groups of operators who voluntarily want to sell carbon credits generated through the development of their projects and activities, and compensators who also voluntarily want to obtain or use carbon credits; as intermediaries or final intermediaries to offset their emissions from other actions”.
According to data from the Ministry of Ecological Transition, the market for the sale of clean air is currently regulated by the central government and has grown in Galicia in the last two years, doubling the number of forests connected to this system to 232. The ministry draws a balance between the tons of wood and the carbon they can absorb: the average pine forest sequesters 450 to 500 tons of CO2.. Companies that want to reduce their ecological footprint and improve their corporate image can purchase the clean air produced by these mountains for up to 70 euros per ton. This system parallels the system that governs industries that emit greenhouse gases, forced to stick to a particular production and pay the price for exceeding it.
The government limits entry to this voluntary market to certain mountains.. The Forest Societies Organization filed a complaint with the European Office on Climate Change, which this business’s FARO group promoted to well-managed forests, the Prensa Ibérica group at the beginning of the month.
Considering this situation, Xunta moves tab to build its own system. “The law focuses on providing Galicia with a regulatory framework to ensure that these loans are best managed and granted. [de carbono]Contributing to the production of such projects from the Xunta First Vice Presidency and the Ministry of Economy, Industry and Innovation”.
The district administration has recently launched a market consultation to promote innovative solutions in terms of offsetting carbon dioxide emissions, considering there is a potential business value of 150 million euros in the community. Now it goes one step further and creates its own carbon bag.
The Galician system will be open to both carbon absorption through trees and the elimination of greenhouse gas emissions and even “direct sequestration of CO2,” according to Xunta. “Today’s forecast is for the Galician registry that in the coming years, loans will be mainly linked to the forestry sector,” they add.
While this bag of clean air in Galicia will be voluntary, its regulatory development through natural resources law and decrees will regulate it. The legislative project already states that the system will be based on quantifying carbon credits – the tonnes captured by each forest – “through methodologies approved under this system.” Therefore, Galicia will determine what it means to absorb a ton of CO2. In addition, each carbon project will be subject to an “initial certification audit process” by an organization designated by Xunta.
The Galician platform, which will allow the trading of clean air, will detail each operator’s data to “avoid the risks of a double count of emissions,” according to the legal text, which also advances Xunta’s help to promote such projects.. “Carbon credits related to projects and activities whose development is associated with additional environmental and social benefits will receive special treatment”To add.