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The session helped attendees understand the distinctions between carbon credits and RECs and their complementary roles in corporate decarbonization strategies. David Yeo described the two as “ebony and ivory,” emphasizing their combined potential to address climate goals. RECs measure megawatt-hours of RE generation, while carbon credits quantify tons of CO2 offset, with carbon credit verification being notably more complex.
NBS were discussed as impactful strategies for addressing climate change, inequality, and biodiversity. Brad Denig of Hutan Synergy highlighted how successful NBS projects channel 10-15% of revenues to local communities, though scaling remains constrained by regulatory and methodological hurdles. The conversation also explored financing tools like green loans and sustainability-linked bonds, which play a crucial role in decarbonization but require clear guidelines and expert support for widespread adoption.
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Madura Wataganase of Deloitte underscored the challenges and opportunities of cross-border REC transactions within Southeast Asia, noting that evolving frameworks like Singapore’s SS 673 standard could enable regional trading but face scrutiny over their alignment with international agreements. Organizations like Zola Climate were highlighted as key players in addressing knowledge gaps, especially for SMEs in Thailand, by offering education on sustainability initiatives and advocating for equitable policies.
Key Takeaways
· Complementary Instruments: Carbon credits and RECs serve distinct but complementary roles in corporate decarbonization strategies, each addressing unique aspects of emissions reduction.
· Nature-Based Solutions: NBS projects offer broad environmental and social benefits but require regulatory reforms and methodological advancements for scalability.
· Green Financing: Tools like green loans and sustainability-linked bonds are critical to funding decarbonization, but corporates need clearer guidelines and expert consultation.
· Cross-Border REC Transactions: While cross-border trading of RECs presents opportunities, regulatory frameworks must balance flexibility with adherence to global standards like RE100.
· SME Knowledge Gaps: SMEs require targeted support to understand and leverage sustainability initiatives, particularly in regions like Thailand, where climate awareness is growing but uneven.
