Plan for Change Now
West Coast sets standard for renewable energy
Previously, we stated that renewable propane will be the fuel to watch for distributors working in the West Coast. California, Washington, and Oregon have, or are close to starting, low carbon fuel programs with the goal of carbon neutrality.
However, low carbon fuel mandates are not the norm for the rest of the nation. Does this mean that fuel distributors don’t need to worry about carbon neutrality? If there are no state laws insisting on low carbon fuel, why does your business need to consider a change?
Why you should plan for change now
The most important reason your business needs to plan for change is because change is coming. At some point carbon neutrality will have a direct and strong impact on your business.
The current administration of the United States strongly promotes the use of less fossil fuels. Legislation in New York and Vermont reflects this attitude. These laws aim to reduce greenhouse emissions in both states and specifically target fuel emissions.
Planning now puts your business ahead of the changing market
Should fuel distributors across North America wait for government mandates before changing how they do business? Why wait, when you could be proactive?
Being proactive puts your business ahead of the coming changes to the energy market. This puts you in a perfect position to take advantage of unique marketing opportunities.
Fuel distributors that plan for and implement changes to reach carbon neutrality now will be positioned as leaders in the carbon neutral market and will be able to present their business that way to customers.
What does planning for change mean
Planning for change means considering many options, including renewable energy. As mentioned above, renewable propane is one source of sustainable energy that will be the best option for distributors working in West Coast states.
Is renewable energy the only option?
In our previous post, we stated that there is not enough renewable propane to meet all the current energy needs, and that production will not meet demand for decades. This deficit is also true for another sustainable fuel, renewable diesel.
Carbon credits are another option
Since renewable energy is not able to meet demand, there is another option to help businesses reach their carbon neutral goal. Carbon credits are that option.
There is a vibrant, active financial market for carbon credits. Anyone can participate, and it is drastically cheaper than the renewable propane and diesel markets. Any fuel distributor could purchase carbon credits for all, or a portion, of their business to truthfully market their firm as carbon neutral (or even carbon negative!).
Taking this stance now will position your business ahead of government regulations, provide a unique marketing opportunity to your customers, and help sustain your business profitability for the long term.
Check back here for a deeper explanation of carbon credits and how they can benefit your business. Contact your Westlark Advisors team to learn how our commodity expertise can provide custom solutions for you as you make the change toward carbon neutrality.
Plan for Change Now
By JD Buss
Photo by Timon Studler on Unsplash
Photo by Kate Trysh on Unsplash