Many companies are already working to reduce emissions within their operations and supply chains, following the mitigation hierarchy, which prioritizes direct emissions reductions. However, some emissions remain unavoidable. This is where Beyond Value Chain Mitigation (BVCM) comes into play. The Science Based Targets initiative (SBTi) defines BVCM as “mitigation action or investments that fall outside a company’s value chain, including activities that avoid or reduce GHG emissions, or remove and store GHGs from the atmosphere.”

Now, with SBTi’s newly released Corporate Net-Zero Standard v2, BVCM is formally recognized as a tool to take responsibility for residual emissions while scaling climate finance. One of the most effective ways companies can contribute beyond their value chains is by supporting and financing high-quality carbon projects. Voluntary carbon markets (VCMs) provide a key mechanism for channeling private sector investment into impactful climate action.

Carbon credits: a critical funding mechanism for meaningful climate action

At their core, carbon credits represent the reduction or removal of one metric ton of CO₂-equivalent emissions. Companies can buy credits from the secondary market through carbon registries or brokers, depending on your volume and quality needs.

High quality carbon credits offer the following major benefits:

• They allow you to take responsibility for unavoidable emissions that can’t be removed from your value chain.
• They serve as a funding mechanism for scaling climate solutions, including nature-based solutions (NBS) and emerging carbon removal technologies that require external investment to reach commercial viability
• They generate co-benefits beyond carbon mitigation, such as biodiversity protection, ecosystem restoration, and positive social impacts for local communities.

High-quality credits also have a ripple effect beyond the direct environmental impact. They can create jobs, enhance biodiversity, improve air quality, and support community-led initiatives.

Ensure integrity: choose high-quality carbon credits

The voluntary carbon market is fragmented and evolving, with varying standards that have historically faced loopholes and were not very conservative when estimating the impact of projects. This has led to inconsistent project efficacy and differences in credit quality, making it challenging to navigate. Understanding which projects truly deliver impact can be complex and bears risks. Some activities may overstate their climate benefits, while others lack strong governance, affecting how funds are used. To mitigate these risks, it’s crucial to invest in high-quality carbon projects that align with robust methodologies, deliver measurable impact, and stand up to scrutiny—ensuring credibility in your climate commitments.

Key characteristics of high-quality carbon credits

The voluntary carbon market is evolving, and new integrity frameworks are helping companies identify high-quality credits that lead to real change.

For example, the Integrity Council for the Voluntary Carbon Market (ICVCM) has introduced Core Carbon Principles (CCPs), a science-based benchmark for ensuring credibility in carbon credits. In addition to the CCPs, leading industry standards like ICROA (International Carbon Reduction & Offset Alliance) and IPCC (Intergovernmental Panel on Climate Change) all aim to uphold integrity in VCMs.

These frameworks all offer helpful guidance for selecting your carbon credits. At a high level though, you should look for credits that are:

• Additional: The emissions reductions must be above and beyond what would have happened without the project.
• Permanent: Projects should ensure that emissions reductions are long-lasting, with safeguards against reversal.
• Verified: Third-party validation ensures accurate measurement and reporting.
• Unique: Each credit should only be claimed once to avoid double counting.
• Supportive of co-benefits: Projects should support broader environmental and social goals, from biodiversity protection to community well-being.

Working with experts can make it easier to navigate the complex market, but you should also be aware of the standards yourself.

The future of corporate climate action

True climate leadership isn’t just about reducing what’s within your control—it’s about scaling impact beyond your business. Companies are increasingly under pressure to act as a positive force for sustainable development, and voluntary carbon markets are an excellent tool for hitting and scaling targets.

As you start to evaluate your sustainability goals and integrate beyond value chain mitigation efforts into your strategy, make sure to procure high-quality carbon credits and work with project developers to invest in projects aligned with your organizational goals. Investing in verified projects reduces your risk of supporting projects with minimal impact and amplifies initiatives that make true climate and community impact.

Using solar panels guarantees diverse benefits and advantages, which focus on different areas. However, on this occasion, SolarLab will discuss the benefits of installing solar panels for the environment. In this sense, the most relevant are the following: 

Reduces air pollution

Conventional electricity is obtained by burning fossil fuels and nuclear reactions. These processes cause various types of pollution, including atmospheric pollution. That is why using solar energy greatly reduces air pollution. Consulting with nuclear risk consultants can provide insights into the environmental impacts of nuclear energy and the benefits of transitioning to cleaner alternatives like solar power.

Reduce fuel use

As mentioned, solar energy does not require fuel since it uses a technological system that transforms solar radiation into electricity. Therefore, this type of system reduces fuel use. In addition, the best thing of all is that the resources required are completely free, clean, and renewable. 

Reduce ecosystem destruction

Another environmental benefit of solar energy is that it reduces ecosystem destruction. If there is less demand for conventional electric energy, the construction of refineries or nuclear plants will be reduced, avoiding the felling of trees and ecosystem destruction.

Another benefit of solar energy is that it reduces water pollution associated with the production of fossil fuels. 

Help fight global warming

As a result of the reduction of greenhouse gases, solar energy directly and indirectly influences the reduction of global warming. And best of all, photovoltaic cell systems require the high temperatures emitted by the sun to operate and transform said energy into electricity. 

It does not generate noise pollution

Another way solar energy benefits the environment is by reducing noise pollution. Due to all the processes required for other types of energy, noise pollution is quite common with solar energy. Therefore, this advantage can be extremely useful when using solar energy in isolated homes or other places. 

Do the environmental benefits of solar energy help preserve the environment?

Solar panels are becoming increasingly popular in the Philippines due to the environmental benefits of solar energy. And the economic benefits, too! 

Reduce greenhouse gases

A single solar power system can avoid producing thousands of tons of greenhouse gases each year. Using renewable energy avoids using fossil fuels that are harmful to the planet. Imagine the enormous impact that could be produced on the entire planet and the environment if thousands of people each year switched from traditional electric power systems to sustainable solar energy systems. 

Less air pollution

The use of fossil fuels produces large amounts of harmful pollutants for the environment, such as smog. Large amounts of emissions are released to dirty and pollute the air thousands of miles away from power plants. These are trapped in the air, thus causing permanent damage. By using solar panels, we help reduce the use of fossil fuels to produce energy. 

Reduce water pollution

Currently, energy production using fossil fuels generates large amounts of toxic waste that are disposed of in landfills. Some of this waste flows into water tanks, and the rest flows into waterways, contaminating water sources and soil. 

We help fight climate change

As polluting gases accumulate, it will become increasingly difficult for the planet to clean its air. These changes in climate conditions will continue to impact different climatic regions. In this context, caring for the environment becomes fundamental, so choosing renewable energy sources is increasingly important. 

What impact do the environmental benefits of solar energy have on reducing the carbon footprint?

Solar energy has a significant impact on reducing carbon footprint due to several key reasons. Below are the main impacts: 

1. Reduction of Greenhouse Gas Emissions (GHG)

Producing electricity from solar energy does not emit carbon dioxide (CO2) or other greenhouse gases during its operation. In comparison, generating electricity from fossil fuels, such as coal and natural gas, produces large amounts of CO2 and other GHGs contributing to climate change. 

2. CO2 Life Cycle

Although manufacturing, transporting, installing, and maintaining solar panels does involve some CO2 emissions, these impacts are minimal compared to the continuous production of emissions-free electricity over the panels’ lifetime, which can be 25 years or more. Studies show that life-cycle emissions from solar energy are significantly lower than those from fossil fuels. 

3. Displacement of Polluting Energy Sources

Every kilowatt-hour (kWh) of electricity generated by solar energy displaces the need to generate that same amount of electricity from polluting sources. This results in a direct reduction in emissions of CO2 and other pollutants associated with burning fossil fuels. 

4. Energy Efficiency and Land Use

Solar technology, especially solar photovoltaics, is becoming more efficient. This allows for more electricity with fewer resources and less space. In addition, solar energy projects can be installed in areas that are not useful for other purposes, such as building roofs, reducing environmental impact and promoting efficient land use. 

5. Innovations and Technological Development

Constant advancements in solar technology are driving down costs and increasing the efficiency of solar panels. Innovations in energy storage, such as batteries, enable more effective integration of solar energy into the power grid, ensuring a more reliable supply and further reducing dependence on fossil energy sources. 

6. Economic and Social Impact

Solar energy adoption has environmental, economic, and social benefits. Job creation in the solar industry and reduced energy costs in the long term also contribute to a more sustainable energy transition. 

Quantitative Examples

To illustrate the impact on reducing carbon footprint, an average 5 kW home solar system can produce around 7,000 kWh of electricity annually. This can avoid approximately 5 metric tons of CO2 annually, equivalent to planting more than 100 trees.

I have some bad news.

My wife and I recently returned from a three week, fall 2017 vacation/tour of China traveling with a very fine Canadian tour outfit, staying in the best hotels, dining in fine Chinese restaurants, and traveling between now major metropolises on China’s newly minted high speed rail (CRH) at nearly a quarter of the speed of sound. We climbed the tallest building in Shanghai and walked on the Great Wall near Beijing. We even sailed down the famous Yangtze River through the now obscured Three Gorges from grimy downtown Chongqing (pop. 35,000,000, and where we saw Giant Panda Ling Ling in the zoo) to the nearly invisible through-the-air-pollution-cloud Three Gorges Dam. We knew there would be air pollution and planned for it by bringing N-95 (3M) and N-99 (see picture above) face masks with us to deal with the expected worst.

The news is this: China’s pollution problem is so overwhelming that, in my opinion, its spread threatens the health of the world. The air pollution cloud is visible from the plane before you land. You are warned not to drink the water and the soil is known to be toxic in many areas. As we traveled on the CRH through the countryside, for instance, we saw many factories, coal-burning power plants and other heavy industries through the hazy moon-scape. Both my wife and I got respiratory infections after about two weeks of travel.

At first, after arriving in Shanghai, the air seemed somewhat clear. I noticed how clean the city was and saw no garbage, no debris, but no insects, and no birds. Visibilities were good and the sky often blue. The view from Shanghai Tower at 1800ft. was impressive with some 10-20km visibility through partly cloudy skies. Maybe the pollution won’t be so bad after all.

Then, after a few days, while traveling north to Qu-fu and Ti’ian, on the way to Beijing, we entered the white cloud. I noticed my breathing changing, my heart rate accelerating and a bad taste in my mouth.  My eyes were irritated and burning. Soon, I partially lost my sense of smell and breathing became painful. Qu-fu, the home of Confucius, was reported to be only “moderately” polluted, but the air was thick with a bad smell and chalky taste. I noticed a few birds flying around the grounds of the Confucius temple, but no insects anywhere. Evening air pollution became fog-like, misty, a shrouding cloud.

Upon arrival Beijing, like Shanghai, was relatively clean, with light pollution and some blue sky.

But that lasted only a couple of days. While touring the Hutong in Beijing, I was struck by this observation-with the exception of a flock of pigeons orbiting the Drum Tower, I saw no birds in any major city; no birdsong, no droppings, no nests, and no birds in the planted trees on the overwhelmed streets of urbanized China.

During the second week of the trip, in Xi’an, I noticed a sick feeling, a malaise throughout my body and had to wear the N99 mask I brought to find any relief. My eyes burned the entire time except when the air was filtered, or we were above the pollution cloud. I developed a cough and again failed to see any birds, insects or other wild life in the city.

Sickness came with the Yangtze River cruise. Departing from Chongqing,

the most populated city in the world, we set sail for Wuhan, some 3 days away. My wife, coughing and with fever, visited the ship’s Doctor who declared she had acute bronchitis and treated her with an intravenous Chinese antibiotic. We did see a couple of Chinese Kites (vultures) flying over the river valley, but no fish or other wildlife. The air pollution hung like a cloud. We saw the Three Gorges Dam through the haze.

I finally succumbed to fever near the end of the trip, in Hong Kong, and was treated for a throat infection, pharyngitis, with Western antibiotics and decongestants.

“The environment [in China] is near the point of no return,” Alex Wolf, an economist at Aberdeen Standard Investments, said in a recent research note. (CNN Money, Nov 2017)

In my travels throughout China, I never had the feeling the air, water, or environment was important enough to try to save, other than in official pronouncements. For instance, I saw very      few windmills but many coal fired power plants, cement factories and other heavy industries from the train windows. I rode in endless heavy traffic in major cities. China claims to have signed the Paris Accord but, indeed, it seems as if China is somehow behind in its goals to “catch up” with the West, and appears to be in pedal-to-the metal growth mode.

According to a statement made in The Economist in 2013, China has emitted more climate change gases from energy production than America since 2006 and by 2014-2015 China will emit twice America’s total. At the present rate of development, cumulative Chinese emissions from energy production between 1990 and 2050 will equal those generated by the whole world from the beginning of the industrial revolution to 1970. About a quarter of China’s carbon emissions are produced in the manufacture of goods for export.[7]

Remember Rachael Carson and the book “Silent Spring”? A silent spring has arrived in China, year round. Sure, the Chinese may have eaten everything flying, but I found no birds, insects, rats, mice, cockroaches, mosquitoes, flies, or spiders in any city, anywhere, on the entire trip. No mosquito bites, no bed bugs, no garbage, no sewer smell, no graffiti, and almost no “blue sky.” Is pollution the cause?

The observed air pollution is calculated to contribute to 1.6 million deaths/year in China [0.7–2.2

million deaths/year at 95% confidence], roughly 17% of all deaths in China.

Air Pollution in China: Mapping of Concentrations and Sources

Robert A. Rohde, Richard A. Muller (2015)

What to do?  The air pollution cloud is now going global. See https://airvisual.com/earth for a real time global air pollution display. The water pollution has spread to the East China Sea and the Pacific Ocean can only absorb so much. The soil pollution, well, does anyone know really how bad it is?

I could go on and on, but actions speak louder than words. I only have observations and questions, but no real answers. This situation will continue, the pollution will get worse, CO2 levels will rise, and the planet will undergo great changes unless things change.

We’re running out of time.