Question 1

What does net zero mean?

Accepted Answer

Net zero refers to achieving a balance between the amount of greenhouse gases emitted into the atmosphere and the amount removed or offset.

Organizations or individuals aiming for net-zero emissions strive to minimize their carbon footprint and offset remaining emissions through measures like carbon credits or carbon removal projects.

Question 2

What are carbon credits?

Accepted Answer

Carbon credits represent a measurable reduction, removal, or avoidance of greenhouse gas emissions. These credits are generated by projects that contribute to environmental sustainability, and they can be traded on the voluntary or regulatory carbon markets.

Purchasing carbon credits allows businesses and individuals to offset their own emissions and support projects that reduce overall carbon impact.

Question 3

What is the difference between the voluntary carbon market and the regulatory carbon market?

Accepted Answer

The voluntary carbon market is based on voluntary participation, where organizations and individuals choose to offset their emissions beyond regulatory requirements. In contrast, the regulatory carbon market operates under government-imposed mandates and compliance programs, where businesses must meet specific emission reduction targets or purchase allowances.

Question 4

What is green finance?

Accepted Answer

Green finance refers to financial products, investments, and initiatives that prioritize environmental sustainability. It involves directing capital towards projects and activities that have positive environmental impacts, such as renewable energy, energy efficiency, and sustainable infrastructure.

Question 5

What type of projects does MBS Green finance?

Accepted Answer

MBS Green focuses on financing a diverse range of environmentally sustainable projects. This may include renewable energy initiatives, energy-efficient technologies, carbon offset projects, and other endeavors that contribute to both environmental preservation and sustainable development.

Question 6

What is carbon trading?

Accepted Answer

Carbon trading is a market-based approach to reducing greenhouse gas emissions. It involves buying and selling carbon credits or allowances, allowing businesses to meet emission reduction targets or generate revenue by selling excess allowances. This practice incentivizes emission reductions in a cost-effective manner.

Question 7

How does carbon offsetting work, and what companies should consider it?

Accepted Answer

Carbon offsetting involves compensating for one’s own emissions by investing in projects that reduce or capture an equivalent amount of greenhouse gases. Companies across various industries should consider carbon offsetting to enhance sustainability efforts, meet corporate social responsibility goals, and contribute to the global fight against climate change.

Question 8

How does MBS Green contribute to carbon offsetting and sustainability efforts?

Accepted Answer

MBS Green actively contributes to carbon offsetting and sustainability by facilitating the trading of high-quality carbon credits. Through our partnerships with verified projects, we enable businesses to offset their emissions and support initiatives that promote environmental conservation and community development.

Question 9

What is Article 6 of the Paris Agreement?

Accepted Answer

Article 6 of the Paris Agreement is a crucial component aimed at facilitating international cooperation in achieving climate goals.

It recognizes that countries can work together voluntarily to implement their Nationally Determined Contributions (NDCs), promoting greater efforts to reduce emissions and support sustainable development.

Article 6 includes three different mechanisms to assist countries in fulfilling their pledges to reduce greenhouse gas emissions, which includes Article 6.2, Article 6.4, and Article 6.8.

Question 10

What is Article 6.2 of the Paris Agreement?

Accepted Answer

Article 6.2 of the Paris Agreement is a provision that allows countries to cooperate in reducing greenhouse gas emissions through a mechanism called “internationally transferred mitigation outcomes” (ITMOs). In simpler terms, it means that countries can work together and trade carbon credits to help achieve their emission reduction goals.

However, it’s important to note that the implementation of Article 6.2 and the specific rules for carbon credit trading are still being negotiated and defined by the parties to the Paris Agreement. The details of how the system will work and its overall impact on carbon credits will depend on the specific agreements reached by the countries involved.

Question 11

What is Article 6.4 of the Paris Agreement?

Accepted Answer

Article 6.4 of the Paris Agreement provides a structure for a carbon credit market on which greenhouse gas (“GHG”) emission reductions or removals may be transferred internationally.

Article 6.4 of the Paris Agreement provides a framework for the establishment of a global carbon credit market. Under the Article 6.4 mechanism, project developers will seek approval from host countries in respect of GHG mitigation activities, before making an application to the Supervisory Body. Once approved, carbon credits known as “A6.4ERs” will be issued in respect of GHG emission reductions or removals, which may then be transferred to other countries or used for other climate change mitigation purposes.

A country purchasing A6.4ERs might use them in recording progress against its Nationally Determined Contribution (“NDC“) submitted pursuant to the Paris Agreement.

Question 12

What is greenwashing?

Accepted Answer

Greenwashing is a deceptive marketing practice where a company exaggerates or falsely claims environmentally friendly initiatives to create a positive public perception. It often involves misleading consumers about a company’s commitment to sustainability, making it crucial for consumers to scrutinize claims and assess the true environmental impact of products or services.

Greenwashing in the context of carbon credits arises when companies use them as a mere PR tool without making genuine efforts to reduce their own carbon footprint. Some businesses may purchase carbon credits to offset emissions without implementing substantive environmental improvements. However, it’s essential to recognize that carbon credits can serve a valid purpose when used by buyers facing limitations in reducing emissions through technical or operational improvements. In such cases, carbon credits provide an avenue for supporting sustainability initiatives and mitigating environmental impact, contributing to a more responsible and balanced approach to carbon management.

Question 13

What is CORSIA?

Accepted Answer

CORSIA, or the Carbon Offsetting and Reduction Scheme for International Aviation, is a global initiative established by the International Civil Aviation Organization (ICAO) to address carbon emissions from the aviation industry. CORSIA aims to cap the sector’s net carbon dioxide emissions at 2020 levels by requiring airlines to offset any emissions exceeding this baseline. It is a market-based approach that encourages the use of carbon credits and sustainable practices to promote environmental responsibility within the aviation industry.

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