The Carbon Border Adjustment Mechanism (CBAM)
11 min
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In this article we’ll explore what the CBAM is, why it’s been created, and what importers need to know ahead of its introduction.
The voice of impact
ESG / CSR
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Ecology
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How to achieve environmental sustainability
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With the growing climate crisis and unprecedented environmental challenges, achieving environmental sustainability has become more critical than ever. Environmental sustainability is not just a buzzword - it's a holistic approach to safeguarding our planet and its ecosystems for current and future generations.
👉 In this article, we'll explore the definition of environmental sustainability, why it's essential, and practical ways individuals, businesses, and governments can contribute to achieving it.
Environmental sustainability definition
“ Environmental sustainability focuses on ecological balance. It involves responsibly engaging with the planet to preserve its natural resources and uphold the ecological balance, all while safeguarding the welfare of both present and future generations. ”
Environmental sustainability encompasses a broad range of practices, from conserving natural resources and preserving biodiversity to reducing waste and emissions. The core principle behind environmental sustainability is the understanding that the health and well-being of humanity are intrinsically tied to the health of our environment; this is why it's so important that we live within the Earth's ecological means.
❗️ In the current global context, environmental sustainability has never been more important. The undeniable realities of climate change, marked by extreme weather events, rising sea levels, and changing weather patterns, highlight the repercussions of neglecting sustainable practices.
Meanwhile, environmental degradation jeopardizes the health of ecosystems and the services they offer, such as clean air, water, and food. Unsustainable human activities, ranging from deforestation to pollution, are pushing countless species towards extinction and threatening the balance of our environment. Addressing these issues is not just a matter of environmental concern but is fundamental to ensuring economic stability, social equity, and the survival of life as we know it.
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Why is environmental sustainability important?
Failure to achieve environmental sustainability carries severe implications for our planet's ecosystems. The unchecked consumption of resources and disruption of ecological balances directly harms the health of our environment. As a result, ecosystems lose their resilience, resulting in a reduction in biodiversity and placing numerous species at risk of extinction. This loss has cascading effects, disrupting key ecosystem services like water purification, pollination, and climate regulation - all of which are essential to the survival of humankind.
What's more, is that the absence of sustainable practices amplifies the threat of climate change. Take, for example, the chopping down of forests (deforestation) either for resources or to clear space for agricultural purposes. This not only destroys vital natural habitats but also eradicates indispensable carbon sinks.
Another human activity that is increasing our vulnerability to climate change is industrial farming. This intensive approach often leads to soil degradation and groundwater depletion, thereby heightening the risk of increased flooding.
These examples illustrate how the destruction of natural habitats not only diminishes biodiversity but also disrupts ecosystems, some of which play an essential role in shielding our planet from environmental disasters. Collectively, these actions emphasize the dire consequences of neglecting environmental sustainability on climate change and its impacts.
💡 According to the IPCC Synthesis Report on Climate Change, global GHG emissions need to peak before 2025 to limit global warming to 1.5 degrees Celsius. Emissions must decline by 43% by 2030 and 60% by 2035 relative to 2019 levels to achieve this target.
Social and economic implications of sustainability
Environmental degradation takes a toll on society, and it has a disproportionate effect on vulnerable communities with limited resources. It leads to a host of interconnected challenges, including human health issues stemming from pollution and resource scarcity due to ecosystem deterioration. Moreover, the displacement of communities in the wake of environmental crises can lead to social unrest and mass migration. These consequences underscore the urgency of achieving environmental sustainability, not only as an ecological issue but as a matter that is fundamental to the well-being of communities.
In addition to its social consequences, environmental degradation also has significant economic repercussions. Industries have to contend with disrupted supply chains and escalating costs as they grapple with the fallout of resource depletion and ecosystem decline. Sectors reliant on nature, such as agriculture and tourism, experience diminishing outputs and declining revenues. As the overall condition of the Earth's environment weakens, economies face the looming threat of systemic downturns that have the potential to erode global growth and prosperity.
Benefits of achieving environmental sustainability
Ecological health and resilience
Achieving environmental sustainability ensures the restoration and maintenance of vital ecosystems. As habitats are preserved and pollution minimized, biodiversity thrives. This not only ensures the survival of countless species but also bolsters the resilience of natural environments against the impacts of climate change. Furthermore, these habitats are able to actively counter climate change by acting as carbon sinks, which absorb and store excess carbon dioxide.
Resource longevity
Sustainable management of natural resources guarantees their availability for generations to come. By using resources efficiently and responsibly, we ensure that future populations inherit a planet rich in the materials necessary for survival and progress.
Improved public health
Communities that incorporate sustainable practices benefit from cleaner air, and water, and reduced exposure to toxins. This results in fewer health issues, reduced medical expenses, and an overall better quality of life.
Social cohesion and reduced conflicts
Embracing environmental sustainability can lead to greater social cohesion. When resources are managed sustainably, there's reduced competition and conflict over them. Communities become more harmonious, working together for shared, sustainable goals.
Economic growth and stability
Businesses that prioritize sustainability often experience reduced operational costs and tap into growing consumer demand for eco-conscious products. This not only fosters innovation but also promotes business resilience in a dynamically evolving global market. Green sectors also introduce new job opportunities, and sustainable economies attract stable investments.
Innovation and market opportunities
A commitment to sustainability drives businesses and societies to innovate, creating eco-friendly technologies, products, and services. This not only opens new markets but also positions companies and countries at the forefront of the global green transition, ensuring long-term relevance and competitiveness.
Key pillars of sustainability
Environmental sustainability represents a multifaceted approach to ensuring that human activities are conducted in harmony with the natural world, allowing both current and future generations to thrive. To address the challenges of sustainability, three key pillars have been identified (also known as the 3 E's): environment, economy, and social equity. Each pillar holds equal importance, and only by considering all three can true sustainability be achieved.
Sustainable environment
Central to the concept of sustainability is the maintenance of ecological balance. This means ensuring that the rate of resource consumption does not outpace the natural replenishment rate. Healthy ecosystems, from forests to oceans, provide essential services such as carbon sequestration, water purification, and habitat provision. By preserving these ecosystems and promoting biodiversity, we not only safeguard the survival of countless species but also maintain the planet's capacity to support human life. Conservation, restoration, and responsible resource management are crucial actions under this pillar.
Sustainable economy
For sustainability initiatives to be lasting, they must also take into consideration economic sustainability. This doesn't mean prioritizing profit over the environment; rather, it means finding harmony where businesses can prosper without degrading ecological systems. Sustainable economic practices look at long-term gains, taking into account the full lifecycle costs and benefits of actions. This approach often leads to innovations that reduce waste, increase efficiency, and create green jobs. A sustainable economy is one that recognizes the inherent value of the environment and integrates it into its growth strategies, ensuring resilience and adaptability in a changing world.
💡 Environmental issues present a financial burden. Studies estimate that Climate-related disasters could rise to 560 per year by 2030, a 40% increase from 2015, necessitating up to $340 billion per year in adaptation finance by 2030 to manage these risks.
Social Equity
Environmental sustainability is closely tied to social sustainability. This pillar emphasizes the importance of inclusivity, ensuring that all members of society have equitable access to resources and opportunities and that they are not disproportionately affected by environmental degradation. Historically, vulnerable communities have borne the brunt of environmental challenges, from pollution to climate change impacts. True sustainability seeks to rectify these injustices, ensuring that initiatives are just, and inclusive, and promote the well-being of all, regardless of socioeconomic status, race, or region. This approach recognizes that the health of our environment is inextricably linked to the well-being of its inhabit
The UN's Goals for Sustainable Development
The United Nations has established 17 Sustainable Development Goals (SDGs) as part of its 2030 Agenda for Sustainable Development. These goals are designed to address global challenges, including those related to poverty, inequality, climate change, environmental degradation, peace, and justice. Among these, several goals specifically focus on environmental sustainability, reflecting the urgent need to preserve our planet’s natural resources and ecological balance.
Key environmental sustainability goals:
| Goal | Objective | Targets |
|---|---|---|
| Goal 6: Clean Water and Sanitation | Ensure availability and sustainable management of water and sanitation for all. | Improve water quality by reducing pollution, eliminating dumping, and minimizing the release of hazardous chemicals and materials. Increase water-use efficiency and implement integrated water resources management at all levels. |
| Goal 7: Affordable and Clean Energy | Ensure access to affordable, reliable, sustainable, and modern energy for all. | Increase the share of renewable energy in the global energy mix, improve energy efficiency, and enhance international cooperation to facilitate access to clean energy research and technology. |
| Goal 11: Sustainable Cities and Communities | Make cities and human settlements inclusive, safe, resilient, and sustainable. | Reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. |
| Goal 12: Responsible Consumption and Production | Ensure sustainable consumption and production patterns. | Achieve the sustainable management and efficient use of natural resources, halve per capita global food waste, and substantially reduce waste generation through prevention, reduction, recycling, and reuse. |
| Goal 13: Climate Action | Take urgent action to combat climate change and its impacts. | Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters, integrate climate change measures into national policies, strategies, and planning, and improve education, awareness, and human and institutional capacity on climate change mitigation. |
| Goal 14: Life Below Water | Conserve and sustainably use the oceans, seas, and marine resources for sustainable development. | Prevent and significantly reduce marine pollution of all kinds, manage and protect marine and coastal ecosystems, and regulate harvesting and end overfishing, illegal, unreported, and unregulated fishing, and destructive fishing practices. |
| Goal 15: Life on Land | Protect, restore, and promote sustainable use of terrestrial ecosystems. | Ensure the conservation of mountain ecosystems, reduce the degradation of natural habitats, halt the loss of biodiversity, and protect threatened species. |
These environmental goals are interconnected and emphasize the need for comprehensive strategies to address the challenges of environmental sustainability. They require the collaboration of governments, businesses, and civil society to implement effective solutions. The success of these goals depends on integrating sustainable practices into all aspects of development, ensuring that economic growth does not come at the expense of the environment.
How can we achieve environmental sustainability?
Environmental sustainability is a pressing concern and is essential for the well-being of our planet and its inhabitants. Charting a path to this goal requires a mix of innovation, policy shifts, and individual commitment. Let's explore some of the actionable strategies and practices that help to foster a more sustainable future.
Individual actions
While systemic change often feels daunting, individual choices can add up to make a significant impact. Here are some areas where personal decisions can make a difference:
Reduced carbon footprints
Minimizing our carbon footprints is crucial in combating climate change and achieving environmental sustainability. Individuals can achieve this by using energy-efficient appliances, opting for public transportation, carpooling, or choosing cleaner modes of transport like cycling. Additionally, reducing meat consumption, using renewable energy sources, and enhancing home insulation can further curtail carbon emissions.
Sustainable consumption
Conscious consumer choices play a pivotal role in promoting sustainability. This means opting for products that are ethically sourced, have minimal packaging, or are made of biodegradable or recyclable materials. It also involves reducing waste by practicing the principles of "reduce, reuse, recycle," and being mindful of water and energy consumption.
Supporting green initiatives
Individuals can actively support environmental initiatives by volunteering with conservation groups, participating in community clean-up drives, or joining tree-planting events. On a smaller scale, creating habitats like gardens can support local biodiversity. Moreover, by educating oneself and participating in environmental dialogues, one can influence broader community engagement and policy direction.
Backing green businesses
Supporting businesses that prioritize eco-friendly practices is another influential action. Whether it's buying from companies that adopt sustainable sourcing practices, invest in renewable energy, or support circular economy principles, our purchasing decisions can incentivize more businesses to adopt green strategies. By choosing to invest in or buy from such businesses, individuals directly foster a market that values and rewards sustainability.
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Businesses
Given their scale and reach, businesses have a significant role to play in advancing environmental sustainability. In fact, it's estimated that just 57 companies are responsible for around 80% of greenhouse gas emissions since 2016, highlighting just how much of an impact businesses have on the environment.
By integrating sustainable practices into their operations and strategies, corporations not only ensure long-term viability but also contribute to the broader goal of environmental well-being. Here's a closer look at some critical areas where businesses can make impactful changes:
Sustainable business practices
Adopting sustainable business practices is a holistic approach that goes beyond profit-making. This includes reducing energy consumption through efficient facilities and operations, minimizing waste and ensuring proper disposal, and integrating renewable energy sources. Businesses can also prioritize the design and offering of eco-friendly products and services while fostering a company culture that values sustainability at every level.
💡 Sustainable business practices also represent an opportunity for companies. According to research by NIQ, 46% of consumers expect brands to take the lead on creating sustainable change, indicating a significant shift in consumer behavior towards sustainability.
Corporate Social Responsibility (CSR)
CSR is an evolving business strategy that prioritizes ethical practices, community engagement, and environmental responsibility. By investing in CSR initiatives, businesses can contribute to societal well-being, environmental conservation, and community development. This not only enhances corporate reputation but also establishes trust and loyalty with customers, investors, and stakeholders. Whether through philanthropic efforts, environmental projects, or community outreach, CSR initiatives can have far-reaching positive effects.
Sustainable supply chain management
The sustainability of a business is often tied to its supply chain. Sustainable supply chain management ensures that every aspect of the production process - from raw material sourcing to product delivery - is conducted ethically and sustainably. This includes working with suppliers who adhere to eco-friendly practices, ensuring fair labor practices, minimizing transportation pollution, and reducing greenhouse gas emissions and waste. By creating a transparent and sustainable supply chain, businesses can guarantee that their products and services are not just beneficial to consumers but also to the environment and society at large.
👉 Greenly can help your company decarbonize its supply chain by engaging with suppliers to reduce carbon emissions and transitioning to low-carbon suppliers. Our platform offers tools for managing Scope 3 emissions, providing transparency and actionable insights to support sustainable sourcing and overall supply chain sustainability.
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Government
Governments wield significant influence in shaping a sustainable future, using their legislative and policy-making powers to set the trajectory for both individual and corporate behavior. Here's an overview of the avenues through which governments can drive environmental sustainability:
Environmental regulations
Regulatory frameworks are essential in setting clear environmental standards. By implementing and enforcing stringent environmental regulations - ranging from emission caps to waste management guidelines - governments can ensure that industries operate within sustainable parameters, reducing negative impacts on the environment.
Green tech and industries
Governments can stimulate the growth of green technologies and industries through incentives, grants, and research funding. By supporting innovations in renewable energy, sustainable agriculture, and eco-friendly transportation, they can pave the way for a more sustainable economic landscape, creating jobs and boosting economic growth in the process.
Policies supporting sustainable practices
Government policies can actively promote sustainable practices across sectors. This includes providing tax breaks for sustainable businesses, offering subsidies for renewable energy installations, and endorsing urban planning that supports public transportation and green spaces. By setting a legislative agenda that prioritizes sustainability, governments play a pivotal role in ensuring a greener future for all.
How can Greenly help your business become more sustainable?
Greenly offers practical solutions to help your business excel in environmental sustainability by cutting down carbon emissions and adopting greener practices. Here’s how we can support your journey:
Measurement of GHG Emissions
- Comprehensive Emission Tracking: Measure Scope 1, 2, and 3 emissions for a full understanding of your greenhouse gas footprint.
- Advanced Technology: Utilise the latest tools to accurately measure your carbon footprint, analyze emissions, and set achievable reduction targets.
Custom Action Plans
- Expert Support: Collaborate with Greenly’s climate experts to develop tailored action plans.
- Seamless Assessment: Identify key areas for improvement and implement effective changes.
Intuitive and Seamless Platform
- User-Friendly Interface: Use Greenly’s intuitive platform to calculate and monitor your business’s carbon footprint, ensuring a smooth carbon assessment process.
With Greenly’s help, your business can significantly reduce its environmental impact, meet ESG goals, and enhance sustainability while making informed business decisions. Contact us today to start your journey towards a greener future.
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