The Remarkable Benefits of Accredited Carbon Verification for Indian Companies: A Path to Sustainability and Success.

As businesses we aim to contribute to a healthier planet, and achieving carbon neutrality has become increasingly important. An accredited carbon verifier is powerful in making this vision a reality. PGS Energy Services (P) Ltd, a leading in India, has witnessed a surge in companies seeking verification services.

In this blog post, we’ll explain how getting an accredited carbon verifier can benefit businesses of all sizes in India. This move is not just a passing trend, but a strategic decision with multiple advantages. We will explore these advantages, so you can make informed choices for the future of your organization.

The Growing Importance of Carbon Neutrality

The scientific evidence is clear: human activity is driving climate change at an alarming rate. A 2021 report by the Intergovernmental Panel on Climate Change (IPCC) warns of severe consequences if we fail to act swiftly.

India, the world’s second-most populous nation, is particularly vulnerable. A 2023 World Bank report projects that climate change could cost India up to 8.5% of its GDP by 2050.

Taking Action: The Rise of Accredited Carbon Verifier

In response to these global and national challenges, businesses are increasingly seeking ways to reduce their carbon footprint and demonstrate their commitment to sustainability. This is where carbon verification comes in.

An accredited carbon verifier is an independent third party that verifies a company’s greenhouse gas (GHG) emissions reduction claims. This verification provides transparency and credibility, allowing companies to:

• Showcase their sustainability efforts: Customers, investors, and stakeholders are increasingly prioritizing sustainability. Accredited verification allows companies to demonstrate their commitment to reducing their carbon footprint.
• Comply with regulations: India is expected to implement a carbon trading scheme soon. Accredited verification can help companies prepare for regulatory compliance.
• Access to new markets: Many international markets are demanding low-carbon products and services. Accredited verification can open doors to new business opportunities.

Quantifying the Benefits: Beyond Reputation

The benefits of accredited carbon verification extend far beyond reputation management. A study by McKinsey & Company found that companies with strong sustainability practices outperform their less sustainable peers financially.

Here are some key ways carbon verification can positively impact your bottom line:

• Reduced energy costs: The process of verification often leads companies to identify areas for energy efficiency improvements, resulting in cost savings.
• Enhanced operational efficiency: Accredited verification can help streamline processes and identify areas for waste reduction, leading to overall operational efficiency gains.

Improved brand loyalty: Consumers are increasingly drawn to sustainable brands. Verification allows companies to build brand loyalty and attract environmentally conscious customers.

Taking the First Step: Choosing the Right Accredited Carbon Verifier

For Indian businesses seeking the benefits of carbon verification, choosing the right accredited verifier is crucial. Look for an organization like PGS Energy Services (P) Ltd that offers the following:

• Accreditation: Ensure the verifier is accredited by a reputable body Bureau of Energy Efficiency, MoP
• Experience: Choose a verifier with a proven track record and experience in your specific industry.
• Expertise: The verifier should have a team of qualified professionals with the knowledge to accurately assess your carbon footprint.

What is the carbon trading scheme expected to be implemented in India? 

India’s carbon trading scheme is still under development, but here’s what we know based on recent announcements:

• Two-part system: The scheme will have both a compliance and a voluntary component.

• • Compliance: This will target specific sectors like steel, iron ore, refineries, cement, Petrochemical, Textile, Pulp & Paper, TPP, DISCOM, Aluminum etc. Obligated entities within these sectors will have emission reduction targets and may need to purchase carbon credits if they exceed their limits.
  • Voluntary: Companies and individuals outside the mandated sectors can participate by registering projects that reduce emissions and obtaining tradable carbon credit certificates (CCCs).

•     Timeline:
• • • The compliance market is expected to launch in 2025-2026.
    • The launch date for the voluntary market is not yet confirmed.

• Key Players:
  • The Bureau of Energy Efficiency (BEE) is responsible for setting emission reduction targets for obligated entities.
  • The Central Electricity Regulatory Commission (CERC) will regulate the trading of carbon credit certificates.

How exactly does the process of carbon verification work?

The process of carbon verification ensures the legitimacy of a company’s greenhouse gas (GHG) emission reduction claims. Here’s a breakdown of the key steps involved:

1. Project Development and Methodology Selection:

• Companies that want to offset their carbon footprint might invest in projects that reduce emissions, like renewable energy generation or forest conservation.
• These projects follow specific methodologies outlined by recognized standards like the Verified Carbon Standard (VCS) or the Gold Standard. These methodologies define how to measure, monitor, and verify emission reductions.

2. Choosing a Verification Body:

• Independent, third-party verification bodies accredited by organizations like the Bureau of Energy Efficiency, Mop in India are crucial for unbiased assessment.

3. Verification Process:

• The verification body conducts a thorough review of the project documentation, including the chosen methodology, project design documents, and monitoring plans.
• Depending on the project scale and complexity, there might be a site visit to verify the project activities and data collection methods.

4. Data Analysis and Verification Report:

• The verification body meticulously analyses the project data, ensuring it’s accurate, complete, and aligns with the chosen methodology.
• Any discrepancies or errors are identified, and the project developer must provide explanations or corrections.

5. Verification Decision and Issuing Carbon Credits:

• Upon successful verification, the verification body issues a verification report that confirms the project’s GHG emission reduction claims.
• If the project meets all requirements, carbon credits, representing one ton of CO2 equivalent (tCO2e) reduced or removed, are issued. These credits can then be traded on the carbon market.

Additional Considerations:

• The verification process can take several months, depending on the project size, complexity, and chosen verification body.
• Costs associated with verification vary based on project specifics but can be a worthwhile investment for companies seeking to demonstrate their commitment to sustainability.

Benefits of Carbon Verification:

• Transparency and Credibility: Verification provides independent validation of emission reduction claims, enhancing a company’s reputation in the eyes of stakeholders.
• Access to Carbon Markets: Verified carbon credits can be traded on the carbon market, potentially generating revenue for project developers.
• Compliance with Regulations: In anticipation of India’s carbon trading scheme, verification can help companies prepare for compliance.

Can you provide examples of Indian businesses that have successfully implemented accredited carbon verification?

Finding specific examples of Indian businesses that have undergone accredited carbon verification can be a bit challenging due to privacy concerns and the evolving nature of the market. However, here are some resources and strategies to help you discover success stories:

1. Look for Case Studies from Verification Bodies:

• Reputable accredited verification bodies like PGS Energy Services (P) Ltd (the company used in the blog post example) often showcase successful client projects on their websites. These case studies might not reveal specific company names but can illustrate the verification process and its benefits.

2. Industry Awards and Recognition:

• Organizations like the Confederation of Indian Industry (CII) might recognize companies for their sustainability efforts, which could include accredited carbon verification. Awards ceremonies or press releases might mention verified companies.

3. News and Media Coverage:

• Search for news articles or press releases mentioning Indian companies and “carbon verification.” These might provide specific examples of successful implementations.

4. Focus on Specific Sectors:

• Start by looking at companies in sectors expected to be included in India’s upcoming carbon trading scheme (steel, power, cement, etc.). These companies are more likely to be undergoing verification in preparation for compliance.

5. Consider Alternative Verification Options:

• While accredited carbon verification is the most robust option, some companies might opt for self-declaration or verification by non-accredited bodies. While these approaches might not hold the same weight, they could still indicate a company’s commitment to carbon reduction.

Here are some general examples of industries where carbon verification is gaining traction in India:

• Renewable Energy: Companies involved in wind, solar, or biogas projects might utilize verification to showcase their positive environmental impact.
• Manufacturing: Forward-thinking manufacturers, especially those exporting to environmentally conscious markets, might pursue verification to demonstrate their commitment to sustainability.
• Forestry and Conservation: Organizations involved in afforestation or forest protection projects might seek verification to generate tradable carbon credits.

While the Indian carbon verification market is still evolving, the trend towards sustainability is undeniable. Although specific examples may presently be limited, the market is expected to mature; resulting in more verified success stories emerging.

Conclusion: A Sustainable Future for Indian Businesses

If you’re looking to embrace a sustainable future, an accredited carbon verifier can help you achieve your goal. We allow you to measure your environmental impact and demonstrate your commitment to reducing carbon emissions. This, in turn, unlocks a range of benefits that can help your organization grow.

At PGS Energy Services (P) Ltd, we’re passionate about helping companies achieve their sustainability goals. If you’re interested in learning more about how accredited carbon verification can help your organization, please don’t hesitate to contact us today. We’re here to help you secure a brighter future.