The two Guelph-based companies will assist customers in mitigating their greenhouse gas (GHG) emissions.
The United States Environmental Protection Agency reports the transportation sector is the largest emitter of GHGs. In response, Freightzy has created what it considers an industry-leading initiative.
“The transportation sector produces about one third of greenhouse gas emissions in both the USA and Canada, and we want to be a leader in addressing the impact of our sector on climate change,” said Sean Freedman, president, Freightzy, in a release. “The business case for carbon-neutral shipping makes sense, and we believe this model could be scaled across the entire industry.”
The program, which is open to all shippers, works by tracking, offsetting and reporting the amount of GHG emissions customers produce by shipping. Freightzy then provides companies with carbon offsets, procured from Less Emissions, to reduce the carbon footprints.
Carbon offsets are emissions reductions credits given to one party, that can be sold to another party, to compensate for its emissions. Freightzy purchases these offsets on less-than-truckload (LTL) — the transportation of relatively small amounts of freight — shipments, which program participants book directly through the company’s shipping portal. There are no additional costs for these kinds of shipments.
For other modes of transportation, such as truckload and rail, Freightzy must calculate the emissions created during the shipping process. The company then offers customers the opportunity to purchase offsets through Less Emissions’ Gold Standard projects portfolio, enabling clients to evaluate their shipping emissions.
Carbon offset credits contribute to global goals
Freightzy partnered with Less Emissions to procure its Gold Standard-certified carbon offset credits. These Canadian-based offsets are the highest-quality offsets available in the marketplace, according to environmental groups such as WWF International, and are sourced from projects with internationally recognized CSA Standard certifications.
The credits also contribute to meeting the United Nations’ (UN) 17 Sustainable Development Goals (SDGs), also known as the Global Goals. The UN adopted these goals in 2015 in an attempt to end poverty, protect the planet and ensure peace and prosperity for everyone by 2030. The SDGs also aim to end hunger, AIDS and discrimination against women and girls.
The Freightzy and Less Emissions’ joint project produces Certified Emission Reductions (CERs), which follow the UN’s Clean Development Mechanism (CDM) protocols, as well as the Gold Standard Foundation’s standards for the Global Goals.
“We applaud Freightzy for their industry-leading Carbon Neutral Program,” said Suha Jethalal, general manager, Less Emissions, in a release. “The emissions from large transport are difficult to mitigate, but it’s essential that we do so to meet the climate goals laid out in the Paris Agreement.
“High-quality offsets are a simple and effective way for organizations to address their near-term emissions until direct solutions like electric trucks are viable.”
Since inception, participating companies have offset 47.41 tonnes of CO2 emissions, the equivalent to the GHG emissions produced by approximately 10 automobiles per year.
Gold Standard offsets assist abroad
Less Emissions purchases emission reductions from projects which support sustainable development in at-risk communities abroad to ensure offsetting positively impacts climate action. The partners achieve this by adhering to at least three of the UN’s Sustainable Development Goals. The program also supports three Gold Standard-certified projects:
- A solid waste treatment plant in Vietnam that captures methane gas emissions from municipal waste and converts the organic materials into sustainable compost for local farmers;
- A project in Thailand that captures biogas from the Thai San Miguel Liquor distillery’s wastewater and converts it into electricity;
- A waste-heat-capture project at the Yingxin Glassworks Factory in China, where four boilers convert waste heat into electricity used for glass production.
Less Emissions was ranked as the highest-quality offset provider by the David Suzuki Foundation and the Pembina Institute. The company’s international-based offsets are derived from Gold Standard-certified projects and are supported by leading environmental groups, such as WWF International.