One New Energy

Energy Generation
Net Zero

Net zero represents a global commitment to hold a “net zero” position in carbon emitted into the atmosphere versus the carbon removed from the atmosphere. Carbon emissions occur during daily business practices (e.g. electricity, commuting etc.). Once emitted, CO2 can be sequestered either through nature-based solutions (e.g. planting trees) or engineered solutions (e.g. pyrolysis & biochar production).

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Net zero is becoming increasingly important due to pressure from both political and financial institutions. Australia’s State and Federal Governments have all now pledged to become net zero by 2050. Government policy has given a clear direction to businesses to reduce their emissions, which helps businesses when making investment decisions for the future. A key example is the European Union, which announced all imports into Europe will have their embedded carbon emissions measured on entry under the Carbon Boarder Adjustment Mechanism (CBAM), a $110/tCO2eq tax on goods that don’t meet European standards for imbedded carbon emissions.

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Financial institutions such as banks, private equity and superannuation funds have begun to show investment support for “green” projects. Financial institutions are now preferencing investments that can show a genuine and positive Environmental, Social, Governance (ESG) agenda. The institutions are beginning to offer a lower interest rate to projects that align with their ESG and decarbonisation goals.