Companies would desire to be able to sell and distribute the compensation they receive for environmental and climatic harm they have caused. However, the market is not really pulling, or rather, it is not really there.
Ulla Heinonen from the Confederation of Business argues, “We need minimum standards for what constitutes compensation, and a record for compensation programs. He oversees EK’s division for green growth.
Heinonen has been in the wash for more than three months, making both the unit and Heinonen new to EK.
Ecological compensation and emission compensation are concepts used to discuss being lost in nature and making up for climate change emissions. These are designed with the concept that after all efforts have been made to prevent harm and minimize emissions, the remaining harm and emissions will be made up for in another location. What cannot be addressed on-site is, in a sense, reimbursed remotely.
Anyone can currently compensate for carbon dioxide emissions from things like their holiday flight. So what exactly is wrong with businesses?
“What constitutes compensation and when it must be given are far too ambiguous. Businesses don’t want to encounter a “green mouth,” according to Heinonen.
In Finland as well as the EU, there is no specific legislation governing business emission compensations. Verra and Gold Standard are the two main certificate traders, and they are responsible for arranging the emission compensations for the corporations.
Emission compensations for businesses are sold in Finland by organizations, foundations, and trading platforms as Nordic Offset, Compensate, Ilmastoapu, Puro.earth, and CO2 Esto.
Popular restaurant chains invested thousands of euros to offset emissions, but it soon became clear that the effort to protect the rainforest was not what it had been intended to be.
Many businesses have set the objective of becoming carbon neutral, hence they need compensatory programs.
According to Heinonen, “The pressure comes from the customers and stakeholders of the firms as well as from the companies’ own responsibility efforts.”
Uncertainty over the advantages of pay for the company itself is one reason for the caution of businesses with compensation.
Diverse afforestation or carbon sink projects are supported with enthusiasm by Finnish businesses. But because the forests are in Finland and the carbon bound by them is instantly reflected in Finland’s net emissions, the enhancement of the carbon sink is counted directly as a climate action of the Finnish state.
Double counting is the issue that results in the same emission reduction being credited to both the state and the business. Any certificate makes it tough to go past this.
The Ministry of the Environment’s website offers advice on how businesses can avoid double counting by submitting their climate claims under the heading that the project promotes Finland’s ambition to become carbon neutral.
“Carefully crafted remuneration is a significant financial commitment on the part of the organization. The payout must thus be certain to actually offset the company’s emissions, not only serve the general welfare, according to Heinonen.
Emission credits are sold for around twice as much as emissions in Finland on the compensation market of businesses and organizations worldwide.
If we in Finland were able to define good compensation without the risk of duplicate counting and if compensation projects could be registered into the national register, this would truly get a major market going.
Currently, neither Verra nor Gold Standard’s registrations contain any projects that were carried out in Finland; for instance, no Finnish afforestation initiatives have received international certification.
After looking into corporations’ voluntary emission compensations, the Ministry of the Environment has determined that it is unnecessary to create separate national legislation.
However, the government plans to provide new guidelines for voluntarily compensating for emissions in February.
On the other hand, the European Commission wants to look into the certification of carbon emissions. Next year should also see the completion of this work.
A corporation can now obtain official approval from the Center for Business, Transport, and the Environment (ely) for voluntary nature compensation as a result of the new law. Additionally gathered at one register are things eligible for rebates that businesses can purchase. This translates into money for landowners.
Heinonen thinks that eventually ecological compensation will become obligatory because it is currently voluntary. “The year 2030 is already the target to cease nature loss.”
Divers Heinonen’s, 45, entire career has been centered around making things more environmentally sustainable.
He holds doctorates in both environmental and civil engineering. Sustainable management of water resources in the Mekong River basin was the focus of the dissertation. Along with his other jobs, he was also working on a dissertation while occasionally residing in Cambodia.
“This genuinely fascinated me, so I didn’t just do it for the dissertation. In my second year of studies, I had already gone on an exchange to Thailand because I was interested in global water concerns.
Heinonen created participatory information gathering techniques on the spot because the locals frequently lacked literacy skills. “Not even a census was accessible in terms of data. Living among the locals and assimilating into that society was a wonderful experience.
Heinonen has worked on digitalization and environmental challenges since graduating from the University of Technology (now Aalto University). Before becoming CEO of Gaia, which offers consultancy for the green transition, I first worked for CGI, an IT consulting firm. When the headhunter called, he departed for EK. It still takes a little getting used to using the Lobbari title.
According to Ulla Heinonen, businesses will invest in efforts to stop climate change and the destruction of the environment, particularly if there is no chance of greenwashing. Image: HS/EMILIA ANUNDI
Heinonen first became aware of sustainable business practices when, at the age of 12, he went with his older sister to a lecture at the University of Economics. Anita Roddick, the creator of The Body Shop, was a British speaker at the seminar.
Heinonen found it impressive that someone in the cosmetics business could also believe that animals aren’t suffering.
Back then, in the 1980s, you went to the library instead of Google. Heinonen devoured numerous books on animal rights. The more he read about nature and environmental problems, the more appealing they seemed.
Heinonen’s current responsibility is to make sure that Finnish businesses keep up with green growth while also ensuring that Finland does so.
Heinonen believes Finland ought to make specific investments in the hydrogen economy. Of course, businesses invest in hydrogen, but Heinone also has high hopes for politicians.
“Finland needs to set a reasonable target. Make a plan for hydrogen production, stating, for instance, that 10% of the green hydrogen required by the EU will be made in Finland. Companies will be able to invest with confidence knowing that we are now serious about this, according to Heinonen.
But the hydrogen economy needs more than simply tactics, especially in terms of electricity. many electrical outlets. Electricity, and not just any electricity, but affordable, clean energy. essentially wind energy.
When the Norwegian company Blastr Green Steel announced that it was constructing a green steel factory in Inkoose at the beginning of January, it provided one illustration of the appeal of green electricity. Exactly hydrogen would be need for Blastr’s steelmaking process.
“Finland’s steadfast climate policy clamps up businesses as well. It is not worthwhile to change the course of climate policy at this time because it draws investments like Blastr.
Read more about the billion-euro steel mill that a Norwegian corporation is constructing in Finland.
Inkoo’s steel mill is just the beginning of a boom in industrial investments that began covertly in Finland.
Experts say that Finland’s record investment is still highly unclear.
In order for Finland’s hydrogen economy to flourish, EK would like to make the licensing process for wind and hydrogen projects easier and faster.
We now need to apply for a number of permits from the state and the municipalities, and on top of that, we still need to wait through the appeals process.
To address this, EK suggests a 1+1+1 paradigm with just one transaction channel, one application, and one appeal option. The “permission master” is the component of the model that is most important. The permit master would handle this communication instead of businesses interacting with towns and elys and aves, or regional administrative bodies. One uniform official vision would be created with the help of the permission master, to which the various authorities should aspire.
Heinonen said, “Now the authorities can criticize each other’s decisions.
The length of the official hearing should also be limited by legislation; according to EK, this limit might be eight months with appeals.