Capping instead of compensating

No forest in the world can store as much CO₂ as we emit

Some providers of climate offsets are trying to build up a counter position to the emissions caused, for example through refore­station programs. As much as we welcome these programs from an ecolo­gical perspective, the area we would need to reforest to mitigate climate change is not available fast enough. We are overbur­dening the forest if we expect it to solve our emissions problems.

If you really want to make a diffe­rence and take respon­si­bility for your carbon footprint, you have to go one step further and reduce. Not just compensate.

Emissions cap. In Europe. For global climate protection.

Many respon­sible entre­pre­neurs do everything they can to reduce emissions that are harmful to the climate. At some point, almost all of them reach a limit: Either a further reduction of emissions is not possible from a purely technical point of view, or it would no longer be econo­mi­cally viable.

For you, we look for a partner who has more and cheaper options for CO₂ avoidance. We pay them for this. As proof of their CO₂ savingswe receive their released emission rights, which we pass on directly to a large German environ­mental foundation for safekeeping. Leave the last step of emissions avoidance to your new partner, obviously they can do it cheaper than you. Otherwise, they would not have sold their emission rights.

Ultimately, this is nothing other than a division of labor to avoid emissions – made possible by EU emissions certi­ficate trading and legally secured by European laws and regulations.

In detail: This is how capping works

CAP₂ buys allowances to legitimize CO₂ emissions and removes them from the market forever. These are then no longer available to the heavy industry to legitimize green­house gases. This perma­nently and sustainably reduces the amount of CO₂ emissions. This works because the number of emission rights is limited by law.

Since the emission allowances are not immediately cancelled by us, but are held by a foundation without ever being able to be sold again, they continue to count as allowances in circu­lation, also known as TNAC (Total Number of Allowances in Circu­lation). Currently, on average, for every hundred unused allowances in circu­lation, 24 fewer allowances are auctioned the following year and instead are trans­ferred to the so-called market stability reserve and eventually automa­ti­cally cancelled. This continues year after year (from 2022, it will be 12 allowances per 100 held) until the TNAC falls below 833 million. Only then can we initiate the cancel­lation of the emission allowances that have been withdrawn from the market. Prior to this, cancel­lation would counteract the automatic reduction in auction volumes.

Independent scien­tists have confirmed in their reports that our contri­bution to climate protection works. Emissions are demons­trably reduced in full. This is guaranteed for the future – even if CAP₂ ceases to exist at some point.

How we use EU emissions trading

Almost 50% of CO₂ emissions in Europe are controlled via EU emissions trading. The number of emission rights is being reduced every year and is becoming incre­a­singly scarce. We buy emission rights for our customers and ensure that they can never be used. The seller of the certi­fi­cates now therefore has less certi­fi­cates than before and has to reduce more.

Why not a tradi­tional offset business?

Any serious approach to reducing harmful climate gases is important and helps limit global warming. However, not every approach is equally suitable for a decision maker.

Sometimes compen­sation projects suffer from the fact that

  • they cannot be increased on a large scale in the short term
  • their success over time is difficult to monitor and a legal framework that is secure far into the future is lacking
  • they try to compensate for existing emissions instead of reducing the emissions themselves
  • because of the Paris Climate Confe­rence, since the beginning of the year, it is no longer possible to offset own emissions against the contri­bution of the offset projects.
  • double claiming can’t be ruled out for some projects

Almost all countries in the world have made a binding commitment to reduce their emissions in Paris. If a project is now carried out abroad to compensate for European emissions, the host country could reduce its own climate protection efforts to the same extent. The contri­bution of a climate protection project would then no longer be additional and compen­sation of own emissions can no longer be promised. Currently, almost all offset projects are affected by this problem. With the entry into force of the resolu­tions of the Paris Climate Confe­rence in January, even Gold Standard projects can no longer guarantee full compen­sation of the CO₂ footprint.

We don’t offset, we cap emission rights and reduce climate pollution. We help you reduce emissions through European emissions certi­ficate trading. Double counting is not a problem with us: With us, you can safely reduce your CO₂ footprint.

With CAP₂ , you do not offset in a distant country, but reduce emissions in Europe: In a completely regulated, stable and estab­lished legal framework. This means that control costs approach zero. At the same time, much larger amounts of CO₂ can be neutra­lized without additional effort.