According to the European Environment Agency, at a worldwide scale, energy consumption represents, by far, the largest source of greenhouse gas emissions derived from human activities. To succeed in limiting global warming, the world urgently needs to use energy efficiently, as well as switch to clean energy sources to promote the detriment of fossil fuels to generate electricity or heat.
Fossil fuels comprise 80% of the current demand for primary energy worldwide and the energy system is the source of approximately two-thirds of global CO2 emissions. If current trends continue, or put another way, if the current proportion of fossil fuels remains and energy demand almost doubles by 2050, emissions will greatly exceed the amount of carbon that can be emitted if the increase is to be limited global average temperature at 2 degrees.
ALLCOT uses and develops work methodologies accredited by the main standards, especially the United Nations Clean Development Model, and “Verified Carbon Standard”. The objective of these methodologies is to determine the baseline scenario of power generation (conventional scenario, prior to the implementation of the greenhouse gas emission reduction project, normally the national energy mix with a percentage of fossil fuel use) and compare it with the project scenario (for example, renewable energy generation through a hydroelectric plant or solar farm). This difference results in the reductions in CO2 emissions produced by the project and that may be marketed.
Apart from the carbon credits themselves or emission reductions (tons of CO2 equivalent), these renewable energy or energy efficiency projects generate significant environmental benefits, promoting cities with a cleaner energy mix, improving air quality and importing technology that otherwise it would not be available in the project area. In short, these projects contribute to the country’s energy transition.