How Carbon Credits Benefit Your Business
Through this series on carbon neutrality we have discussed the following:
- what carbon credits are,
- why carbon credits are more than just “pieces of paper,”
- and how you can purchase them (Part 1, Part 2).
However, there is still one vital question – how do carbon credits benefit your business?
Incorporating carbon credits now puts your business ahead of coming changes
Climate change has been and still is a controversial topic, but the global trend to reduce carbon emissions moves solidly forward. The current United States administration supports reducing the use of fossil fuels. States like California, Washington, and Oregon have or are close to having low carbon fuel programs. While states like New York and Vermont are currently considering legislation to lower their fossil fuel use.
Instead of waiting for legislation to issue mandates and penalties, why not proactively choose carbon credits? This action will generate a positive company image ahead of coming changes at either state or federal level.
Allowing a government entity to label your business as detrimental to the climate can potentially reduce your viability. Choosing carbon credits now allows your business to be seen as committed to providing excellent customer service for the long term, no matter what changes occur in the energy market.
In addition, incorporating carbon credits now forces a broader discussion about why a capitalistic market practice can’t be considered as equal to (or better than) government regulated practices.
If those aren’t enough reasons to consider using carbon credits now, then we can recommend some specific financial benefits.
Incorporating carbon credits now has financial benefits for your business
Providing a higher level of service to a customer should be met with a commensurate increase in value. Supplying customers with carbon neutral fuel is extremely valuable and should be worth more than less climate friendly options.
Our final financial benefit provides a comparison of renewable propane – another valuable item that can reduce your carbon footprint – and carbon credits.
Carbon credits are cheaper and more readily available than renewable propane. Currently carbon credits are only 20% or less than the cost of renewable propane. Additionally, there are significantly more carbon credits available for use than renewable propane.
If you have renewable propane available, we recommend using it. However, 90+% of fuel distributors in North America do not have access to enough renewable propane to meet demand. With all these things being the case, why not use a more cost-effective solution to transform your company into a carbon neutral business?
We hope you have enjoyed our series on carbon neutrality. If you would like more information about how your business can use carbon credits to achieve carbon neutrality, please contact your Westlark Advisors team. And don’t forget to check back here for more posts on topics related to the changing energy market.
How Carbon Credits Benefit Your Business
By JD Buss
