Additionality

Green Quick Fix

In a business-as-usual scenario, companies find it very challenging to implement carbon emission reduction activities in the business. It is due to factors such as lack of funds, outdated technology, high risks, and talent gaps. As a result, if companies still implement carbon emission reduction activities out of goodwill, we refer to such activities as an additionality, but this is exactly the reason why green enterprises are oftentimes unable to acquire carbon rights.

Very odd? A simple analogy would be two students taking the same test – one of the students being an overachiever (green enterprises) and other one just your average Joe (non-green, regular companies). Getting a 90 on the test is nothing unusual for the overachiever, so she will not receive additional rewards (carbon rights) for accomplishing the feat. However, for the average student who usually gets a 60 on his exam. If he scores a 70 on his exam, people will praise his efforts and shower him with prizes, who then takes the carbon rights and exchanges them for cash.

 

This article is also published in INSIDE(標題 :【硬塞科技字典】什麼是外加性(Additionality)?)


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