Carbon pricing and the circular economy

Carbon pricing has the potential to be a gamechanger in our efforts to transition towards the circular economy. Some sectors already pay for their emissions, for others it might become a reality soon. Even if carbon pricing is not on the table, it makes sense to put a price tag on your emissions – as a benchmark for improvement. In this article you’ll find what carbon pricing is, why Cirmar’s C_passport® allows you to calculate the carbon price of your products, and how this contributes to the transition towards a more sustainable, circular economy.

*Source of image: climatestrategies.org*

Understanding Carbon Pricing.

Let’s demystify carbon pricing! It’s pretty simple: companies pay for the negative side effects of their activities. Carbon emissions affect the climate, which is why countries, or supranational organisations (like the European Union) charge companies with a tax on carbon emissions. It’s a tool that has to contribute to a goal: reducing emissions. The European Union for example, has set a target of reducing carbon emissions by 55 procent in 2030 compared to 1990. This price tag on emissions has to stimulate companies to take sustainable action. If you emit more than a certain amount, you start paying for your emissions. This marks an important step towards a more circular economy, since materials account for a large chunk of worldwide emissions.

Consequences for companies: let’s talk opportunities.

Unleashing innovation.
Carbon pricing isn’t just about costs; it’s a game of innovation. Expressing emissions in terms of carbon pricing pushes companies to get creative, encouraging research and development of low-carbon technologies. Sustainable innovation needs to be based on solid business cases. That is why it makes sense to understand the price of emissions to drive change. From energy efficiency breakthroughs to renewable energy revolutions, the opportunities to make a positive impact and pioneer change are boundless. Your company can take charge and show the way.

Meeting consumer demand.
The tides are turning, and consumers are increasingly favouring sustainable products and services. Carbon pricing acts as a megaphone for changing consumer preferences. By showing your customers that you are on their page when it comes to sustainability and offering low-carbon options, they are more likely to become fans of your company. It’s a win-win: for the planet and for business.

Leading the way.
Become a sustainable leader by showcasing your commitment to reducing emissions and embracing a greener future. Purpose-driven organisations are popular among employees and customers, but it resonates throughout the entire supply cycle if you show your sustainable, circular approach to doing business.

Strategies – what to do?

Now that the stage is set, it’s time to unveil strategies for you to seize the opportunities presented by carbon pricing:

Become an energy-smart champion.
Embrace energy efficiency and emissions reduction as superpowers. Invest in energy-efficient technologies, tap into renewable energy sources, and implement initiatives to shrink your carbon footprint. Becoming an energy-smart champion not only saves costs but also showcases your commitment to a sustainable future.

Team up for impact.
Collaboration is the name of the game. Forge partnerships with suppliers, customers, and industry peers to collectively reduce emissions and explore innovative solutions. By joining forces, you can amplify your positive impact and make a real difference on a larger scale.

Become a pioneer.
Embrace the power of innovation and diversification. Adopt clean technologies, explore sustainable business models, and tap into emerging low-carbon markets. By blazing a trail and embracing change, you can pioneer new frontiers and position your company as leader in the low-carbon economy.

Turn insights into action.
Use Cirmar’s tech tools to create insights into the carbon pricing of your products. This is your starting point to for improvement. Use cleaner production methods, choose recycled materials instead of virgin, and explore the advantages of finding better next-use solutions. Establish your company as a sustainable pioneer that turns insights into action.

Let’s do this.

In the world of carbon pricing, change brings opportunities knocking at the door of businesses. By embracing the possibilities, companies can become champions of sustainability, drive innovation, and meet consumer demand. It’s time to rewrite the playbook, capitalise on change, and create a brighter, greener future where businesses thrive while making a positive difference. Let’s seize the day and embark on this exciting journey together!