We are excited to announce a significant step in supporting our clients' climate strategies: Carbometrix is now a referenced partner of the Climate Dividends initiative! This partnership strengthens our commitment to support private market participants effectively measure and communicate their positive contribution to global decarbonization efforts.
Carbon accounting often focuses on a company's negative impacts (induced emissions), sometimes overlooking the important role of climate solutions in reducing global emissions. Climate Dividends are an extra-financial mechanism, corresponding to the measure of a company’s positive contribution to global decarbonisation (i.e the removed or avoided emissions by its activity) that can be awarded to its shareholders.
What are avoided emissions ?
Avoided emissions : reductions in GHG emissions that occur outside an organization’s own value chain but are achieved through the use of its products or services. These reductions occur when a company’s solution allows third parties to lower their emissions compared to a baseline scenario.
Example: A car manufacturer producing and selling small electric vehicles avoids emissions as their product replaces a more carbon-intensive alternative (like a standard combustion engine vehicle). This is distinct from the car manufacturer reducing their own carbon footprint (induced emissions) or sequestering carbon (absorption).
Climate Dividends: Quantifying positive impact
A Climate Dividend is an extra-financial indicator designed to measure and value a company's positive climate contribution, which is distributed to equity shareholders.
1 Climate Dividend = 1 tonne of CO2e avoided or removed by the company's activity.
They serve as a standardized and comparable indicator of a company's climate-positive contribution, complementing (never offsetting) negative impact assessments.
They also provide investment traceability, offering a concrete measure of the climate efficiency of capital allocation.
How Carbometrix supports your Climate Dividend claim
As a referenced partner, Carbometrix is certified to guide you through the meticulous Climate Dividends process, to be able to measure and climate climate dividends.
1. Eligibility
We help you verify that both your company (entity) and your climate solution meet all stringent criteria, ensuring transparency and avoiding greenwashing.
Company eligibility: We ensure you have a robust carbon footprint (Scopes 1-3) and a credible transition plan in place, if required.
Solution eligibility: We validate that your activity truly qualifies as a climate solution (e.g., aligned with the EU Taxonomy), contributes legitimately, and adheres to the Do No Significant Harm (DNSH) principle.
2. Evaluation & Methodology
This is where we measure the impact. We support you in compiling the Solution Detailed Declaration (SDD), a comprehensive document formalizing your claim. This involves:
Defining the baseline: Determining the most realistic alternative scenario that your solution replaces or improves, using frameworks aligned with best practices like the WBCSD's "Guidance on Avoided Emissions".
Calculating the claim: Assessing the tonnes of CO2 eq. avoided or removed, while carefully integrating dynamic aspects (like the gradual decarbonization of the electricity grid) and any rebound effects.
Data quality: Ensuring the geographic, temporal, and technological representativeness of all data used for the calculation.
Attribution key: For solutions involving multiple stakeholders, we help define the attribution key to fairly share the positive impact across the value chain.
Key Benefits for You
By leveraging the Climate Dividends mechanism with Carbometrix, you can:
Prove your impact: Gain a credible, audited, and standardized metric to demonstrate your positive climate contribution to investors and the market.
Trace investment efficiency: Use the resulting Climate Dividends to measure the climate efficiency of your capital and attract impact-driven investors.
Optimize financing: Integrate Climate Dividends as a robust KPI to potentially reduce the cost of debt in loans with environmental performance criteria.
Drive strategy: Use the data to pilot internal business decisions, engage employees, and benchmark against competitors.
Learn More
For a deeper dive into the methodology and best practices for calculating avoided emissions, we encourage you to watch the replays of our dedicated webinars here.