Carbon Management: 4 Key Considerations When Preparing a Carbon Budget – Part 4
A carbon budget is a tool that companies can adopt to provide a clear, defendable and importantly adaptable frame under which they can develop a decarbonisation plan. It sets a clear and transparent cap on emissions over a fixed period of time, whilst also providing a degree of flexibility to adapt their specific decarbonisation strategy as relevant to their business circumstance.
Carbon budgets, like traditional financial budgets, are a short to medium term outlook that considers the current plan and operational settings and models the likely outcome at a defined point in the future. Usually this is set around the financial or tax year, in the case of Australia, July to June of the following year.
The carbon budget is not only a prediction of carbon emission, but a focal point for operational and management behaviour that influences decisions around optimal use of carbon-intensity energy and materials processing. It drives operational excellence and minimisation of unexpected emission scenarios – think “using higher carbon intensity energy because it’s easier”, or “keeping tyres optimally inflated to reduce road drag”. These decisions, while small, add up to big numbers if left unchecked.
Here are 4 key considerations when preparing a carbon budget:
Choose a reasonable timeline – the current and next financial year is usually sufficient
Break down your operation into segments already defined by management, activity or operational structures, such as by facility, sector, product line, activity type, etc.
Write a strategy for each, and estimate the energy and emissions impact expected over the forecast period. Include in the strategy ways to mitigate or minimise unnecessary energy use or emissions on top of what is reasonable
Empower your key stakeholders to stick to the strategy and encourage them to surpass it if they can
Importantly, once a carbon budget is prepared and agreed to, regular tracking against the plan is essential to ensure timely progress of your decarbonisation goals.
At Greenbase, we have integrated budgeting, tracking and forecasting into Envago Carbon, an innovative carbon management suite designed to simplify your decarbonisation journey.
To learn more about how we can assist your company to put together an effective carbon budget, book an appointment and speak to one of our Environmental Specialist today: https://www.greenbase.com.au/contact-us
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