We are convinced that our Sustainable Community Solution has considerable value because of the GHG emission aggregation around a similar unitary price for carbon title from facilities with a potential for several GHG reduction activities.
We are convinced that our Sustainable Community Solution has considerable value because of the GHG emission aggregation around a similar unitary price for carbon title from facilities with a potential for several GHG reduction activities. Our assumptions are based on the following elements:
- The GHG reductions have resulted from actions that are conscious, voluntary, permanent, additional, measurable and can be easily verified.
- Our solution groups together mico efforts (< 5 000 MT of eCO2/year/site of GHG reductions) that are supported by actions carried out principally beforehand companies’ activities. That is to say, currents or futures activities that goes beyond business as usual such as end of pipe activities or past activities (methane capture or site rehabilitation) from hundreds, if not thousands of facilities that produced less than 25 000 MT of eCO2/site/year.
- The GHG reductions efforts have been carried out individually, facility per facility, or through community actions (waste exchange from one facility to another that permits diversion of waste from landfill). It will have an impact and will result on a community movement.
- The reduction’s efforts are the result of new environmental practices and the incorporation of numerous green technologies so called “Clean Techs”. It creates a significant domino effect for a more sustainable behaviour for all Quebec facilities. This behavior change is the cornerstone for a transition towards a low carbon economy.
- As per the quantification and the verification of our GHG reductions, we used a methodology approved by VCS, a standard internationally recognized in 2012 . Our carbon credits, that will become VCUs, are fungibles in regional carbon markets actually implemented throughout the world.
- The VCUs originating from our Quebec’s Sustainable Community Project, vintage Will-QC, are of higher value since they were done in a low energy cost market and based on hydroelectricity. These efforts focusing in energy efficiency, waste minimization and eventually, transport. Three activities actually identified as major determinants worldwide. A report from McKinley has recognized these fields of activity as globally important .
As for the wine, the price for carbon credits can change according to the nature of the project, the standards used and the year (vintage). At the same time, we anticipated a high demand that will increase in time, for offset credits stimulated by the implementation of regulated regional carbon markets and corporate appetite (Corporate social responsibility or CSR). The marketplace as a whole considers unanimously the use of offsets credits outside their territory. This will create a pressure on the offer for high quality offset credits. Based on the assumptions detailed above and the carbon market analysis, the selling price of our VCUs originating from our Sustainable Community Project will be between 30 to $ 50/VCU.
As per the Quebec Government , in 2009, the Quebec emitted 81,7 MT of GHG . On the basis of $10 MT of eCO2, the GHG emissions represent about 0,027 % of Quebec GDP. In Quebec, the carbon sector is linked to the PACC 2013-2020 that forecast 2,7 billion in investment measures, programs and capital costs. The annual expenses for this program will represent, in peak period, about 0.15% of the Quebec GDP. According to our estimation, in 2009, 66% of the GHG Quebec emissions came from all transport activities, waste management and the use of fossil fuel (excluding emissions from industrial processes and large final emitters ). We estimated that 53% of all GHG Quebec emissions are related to business units (transport, fossil energy and waste activities). Individually, they constituted 99.5% of the GHG low level emitters, that is to say, business units producing ≤ 25 000 MT of eCO2 yearly. Let’s not forget that about 70% of the GHG Quebec emissions are originating from small final emitters.
Martin Clermont, CEO of Will Solutions