Lux Research introduced a model to analyze industrial decarbonization measures during our annual meeting in 2021. We differentiated between three approaches to decarbonization: 1. Makeshift: measures that reduce climate impact with minimal changes 2. Retrofit: measures that preserve most of your assets yet require substantial investments 3. Transformational: completely new approaches to your product, business, or market One makeshift measure that has attracted much attention lately is the production or acquisition of "carbon credits." Using carbon credits, companies can reduce their carbon footprint through investments elsewhere, outside of their assets or even their value chain. However, many observers and experts on decarbonization criticize carbon credits as greenwashing. Even if you can show that the carbon credits do make a difference for climate change, your company still assumes a long-term responsibility for the carbon underlying the credits. That may be particularly troublesome if the carbon credits were created through high-emission activities outside your usual business. In this webinar, we look at the different kinds of carbon credits, how they are manufactured and traded, and most importantly, how you can decide whether and how to use carbon credits as part of your net-zero corporate roadmap.
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