A truck is loaded with sugarcane in Sertaozinho
Companies must focus on their value chains and there is a role for proven market mechanisms
Kirsten Schuijt is Director General of WWF International
Corporate leaders understand that cutting emissions will reduce risk to their companies
But with a patchwork of mostly insufficient national and regional regulation
what counts as credible and ambitious corporate climate action isn’t immediately clear
Businesses can make the greatest contribution to solving the climate crisis by reducing emissions from their value chains
Accounting for three-quarters of companies’ direct and indirect climate impacts
“Scope 3” emissions come from firms’ supply chains and the use of their products and services
And they are proving to be some of the most challenging for companies to address
At this critical moment in humanity’s response to the climate crisis
companies need a suite of flexible yet scientifically rigorous approaches to reduce these emissions
Many companies are turning to voluntary organisations
such as the Science Based Targets initiative (SBTi) - which WWF co-founded - to guide them towards ambitious climate action
However, SBTi’s recent announcement proposing the expanded use of market mechanisms to reduce Scope 3 emissions caused confusion and raised questions about its scientific foundation
It has also spurred an important discussion about how companies can credibly meet their Scope 3 targets
This debate has been characterised by two camps: one focused on using market mechanisms to unlock much-needed capital for climate and nature
particularly in developing countries - and the other focused on incentivising industry transformation to cut value chain emissions
Focusing on reducing value chain emissions is the most effective way to decarbonise the global economy. There are plenty of incentives for companies to take these steps since they mitigate risk
and build long-term certainty of supply and demand
Companies with global value chains are already channelling significant capital to developing countries to address energy, industry, agriculture and forestry related emissions. SBTi’s new standard on accounting for land-related emissions also creates incentives for more companies to invest in sustainable agriculture and nature
Expanding the targeted use of some market mechanisms can provide companies struggling to meet their Scope 3 targets with new options and incentives
By investing in transforming the markets where they have value chains
companies can deliver credible and durable emissions reductions
through vehicles such as renewable energy credits to contribute to the energy transition
Sustainable sourcing instruments like green steel certificates can help forge a sustainable steel sector
It's these kinds of innovative approaches that can unlock the true potential of corporate climate action
The debate on Scope 3 targets doesn’t boil down to “for or against” carbon credits, as some would have you believe. Most companies are just looking for simpler processes
and frameworks that enable them to focus on the highest impact emissions categories and invest in solutions - something SBTi and the Greenhouse Gas Protocol (GHGP) should help support
While in-value-chain decarbonisation is central to effective climate action
there is a role for corporate investments beyond their value chains - to protect vital natural carbon sinks and support a just energy transition in developing countries
Companies should consider a range of innovative public and private finance options to make these investments
It would also be helpful to grow a more credible voluntary carbon market that can provide a valuable pathway for companies to make additional investments
Achieving this credibility will require high integrity accounting: projects that simultaneously benefit climate
nature and local communities; and a fair carbon price that reflects the full costs of a high-quality intervention
we see the urgent need to channel more funding into developing countries for nature conservation and restoration
We know the immense contribution of nature to climate mitigation and adaptation
But corporate funding should not be used for offsetting necessary emission reductions
or come at the expense of in-value-chain investments to aggressively reduce emissions that have been major drivers of the climate and nature crisis
The WWF global network is united in the view that credible corporate climate action at scale is essential to ensure a living planet for future generations
Government regulation and finance remains fundamental and important but as both continue to fall short
voluntary corporate action must continue to be guided by science and grounded in good governance
As SBTi fills this gap and works with partners to revise its Scope 3 requirements
it is crucial to identify solutions that are feasible
and able to make a meaningful impact on the path to net zero
Any views expressed in this opinion piece are those of the author and not of Context or the Thomson Reuters Foundation
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A worker walks past trucks filled with sugarcane at a mill in Sertaozinho
2019 at 10:56 AM EDTBookmarkSaveLock This article is for subscribers only.As Brazilian millers turn to ethanol
sugar production in the nation’s main growing region is now forecast to fall to a 14-year low
That’s according to influential industry group Unica
which expects sugar output in the center south to fall by 5.7% year-on-year to 25 million metric tons
according to people familiar with the matter
who asked not to be identified because the information is private
The group plans to present the new forecast to a government committee that monitors ethanol supplies
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147.45.197.102 : 87d7b80d-4307-44f7-8402-964522e3
the world's largest sugarcane processor
said that industrial operations at a plant in Sertaozinho had been halted since Thursday due to fires in sugarcane fields around the plant.The Sao Paulo state government has created an emergency committee to handle the fires
which had also blocked some 15 highways either fully or partially.Brazil's wildfire season typically peaks in August and September.This year wildfires started unusually early in Pantanal
while the number of fires in the Amazon rainforest surged to a two-decade high for the month of July
government data showed early this month.Reporting by Fabricio de Castro in Sao Paulo; Writing by Andre Romani; Editing by Sandra Maler
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Biosev SA’s Santa Elisa mill in Sertaozinho
2018 at 10:04 AM EDTBookmarkSaveLock This article is for subscribers only.Margarita Louis-Dreyfus
the billionaire owner of the eponymous commodities trader
has agreed to bail out her struggling Brazilian sugar business with a $1.05 billion capital injection
ramping-up financial pressures on the Russian-born heiress
suspended dividends in 2017 for the first time in 13 years
Adebayor: Arsenal striker Emmanuel Adebayor could be rested for today's league game at Bolton after leading the line all season
Adebayor has shouldered the scoring burden after injuries to Robin van Persie and Eduardo da Silva
"I believe he has given a lot this year and that he would need a little breather
Podolski: Germany striker Lukas Podolski will consider his future at Bayern Munich once the season is over after getting fed up with his role as a substitute
"I've had it up to here with being on the bench," Podolski said
"I'll think about my future at the end of the season
We have to see whether it makes sense for either side."
Cahill out: Everton striker Tim Cahill is out for the rest of the season with a broken foot
who missed Australia's 0-0 draw away to China in an Asian 2010 World Cup qualifier on Wednesday
was injured during last weekend's league match at home to West Ham
Adriano: Adriano scored one goal and set up another to help Sao Paulo beat Sertaozinho 3-1 in the Paulista championship on Thursday
The win lifted Sao Paulo to third in the championship with 32 points from 17 games
The top four teams qualify for the semi-finals
Van Gaal: AZ Alkmaar coach Louis van Gaal will step down at the end of this season
who also had spells in charge of Ajax and Barcelona
Betis stadium: Real Betis will be allowed to play Barcelona at their own ground today despite being given a two-match stadium ban after a visiting player was hit in the face by a bottle thrown from the crowd
Betis had been ordered to play the match at Atletico Madrid's Vicente Calderon stadium by the Spanish FA but Spain's Sporting Discipline Committee agreed to an appeal from the club asking for a delay to the sanction
In England: League One - Doncaster vs Nottm
Forest 1-0; Tranmere Rovers vs Swindon Town 2-1
Three: Zejtun vs Xghajra 1-1; Pembroke vs Kirkop 4-0
Basketball: Louis Borg Cup final (men) first leg - Mellieha SVS vs BUPA Luxol 53-103
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IT'S a case of keeping it all in the family with Gerrick Numan's latest venture
His first Armadale cafe was named after his grandfather
and Prahran's Hobba pays homage to his dad
An old tyre garage was given an early retirement and a trendy cafe with bare brick walls
exposed beams and raw timber with third-wave coffee and edgy food was born
Numan and partners - chef Josh Powell (formerly of Vue de Monde
Circa and The Fat Duck in Britain) and Simon McNamara (the brains behind Grill'd and Wicked with Chocolate) - wanted to find a beautiful space close to their homes
''We were looking for somewhere that didn't have a cool place to hang out,'' Numan says
''We wanted to create a local hangout again but step it up a little from Willim.'' Hobba has been busy since it opened in July
There are some serious coffee options and Powell has created an interesting menu sourcing quality Victorian produce such as Green eggs
Numan's interest in coffee means there is a strong focus on the bean at Hobba
Coffee is sourced from Five Senses roasters and there is a choice of two espresso coffees
and a yirgacheffe single-origin from Ethiopia
Coffee geeks can choose from four filter coffees that include Panama geisha
Barista Alan Huang takes charge of the $25,000 Synesso Hydra and there's an Uber Boiler for filter coffees
which are made using a Clever Coffee Dripper
The ever-popular latte comes silky-smooth with bright caramel tones
Having recently undertaken a coffee roasting course with American consultant Tracy Allen
Numan is keen to start his own roastery in one of the boxed spaces in the new year
''It takes a long time to do coffee roasting well; it's similar to being a chef,'' he says
The most popular dishes on Powell's menu include the Warialda Belted Galloway beef burger and chickpea fritters with hummus
plus there are gluten-free options such as braised lamb neck
The front doors open up (a better idea in summer than winter)
wooden booths are the most comfortable seating and communal tables are in demand
as are the children's blackboard and chairs
Found a hot new coffee spot? Email epicure@theage.com.au
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