Understanding Environmental Commodities 

Environmental commodities are tools designed to achieve environmental goals and drive climate impact. Some of the most common types include renewable electricity, Energy Attribute Certificates (EACs), biofuels, biofuels certificates, feedstock, and carbon, plastic, and biodiversity credits. 

Renewable Electricity & Energy Attribute Certificates (EACs): 

Renewable electricity is made from sustainable sources like solar, wind, or hydropower, and it is a pivotal force driving climate action. Within the environmental commodities market, Environmental Attribute Certificates (EACs) serve as vital proof that a specific amount of energy has been generated through renewable means. Organizations can strategically purchase EACs to align their electricity consumption with renewable energy production, effectively reducing emissions and enabling them to hit sustainable development targets. 

Biofuels, Biofuel Certificates & Feedstock: 

Biofuels, derived from organic materials such as crops or waste, offer a renewable alternative to traditional fossil fuels, and biofuel certificates are traceable and verifiable mechanisms that provide tangible proof of biofuels' environmental sustainability. Both solutions play a crucial role in reducing greenhouse gas emissions from the transportation sector. By purchasing biofuel certificates or incorporating biofuels into their operations, organizations can reach compliance goals and contribute to lowering their overall carbon footprint.  

Feedstock refers to the raw materials used in biofuels and other renewable energy sources, such as corn, sugarcane, and soybean oils. Sustainable feedstock practices ensure that the materials used are sourced responsibly and do not contribute to deforestation or other environmental degradation. Responsible management of feedstock is essential for maintaining the overall sustainability of biofuel production. 

Carbon Credits: 

Carbon credits are perhaps the most well-known type of environmental commodity. They are generated by climate projects all over the world that mitigate greenhouse gas (GHG) emissions. Each carbon credit represents one metric ton of harmful GHG emissions that were avoided, removed, or reduced, and they are recorded in a registry to ensure their authenticity and traceability.   

In addition to being measurable and tangible, carbon credits are an ideal tool for addressing your current unreduced emissions regardless of your organization’s location. So, let’s say you purchase carbon credits for a deforestation project in South America, you can offset your emissions even if you’re on the other side of the globe. 

Plastic Credits: 

Plastic credits are emerging as a response to the global plastic pollution crisis. They represent efforts to reduce, recycle, or responsibly manage plastic waste. Organizations can earn plastic credits by implementing measures that contribute to a circular economy for plastics, minimizing the environmental impact of plastic production and disposal.  

Biodiversity Credits: 

Biodiversity credits facilitate initiatives that contribute to the conservation and restoration of biodiversity. This includes projects focused on preserving ecosystems, protecting endangered species, and promoting sustainable land use practices.  

Navigating the Environmental Landscape with a Trusted Partner 

Environmental commodities are more than transactions; they help organizations hit climate action targets, meet regulatory requirements, and make meaningful social and environmental impacts. As companies embark on their sustainability journey, having a trusted partner can make all the difference, and that is where ACT steps in. 

With a CDP Gold Accreditation and a suite of market-based solutions, we are committed to empowering organizations in every sector and geography to decarbonize efficiently. We also work closely with industry leaders like CDP, the Greenhouse Gas Protocol, the International Emissions Trading Association, and the International Carbon Reduction & Offset Alliance to ensure our products and services are relevant in changing landscapes.  

Contact us today to see how we can help your organization source the environmental commodities it needs to effectively reach its unique sustainability goals.