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<p><span style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));" data-mce-style="font-family: inherit; font-size: calc(18px * var(--body-fontSize, 1)); font-weight: inherit; font-style: var(--body-fontStyle, normal); background-color: rgba(249,250,251,var(--tw-bg-opacity));">Southeast Asia is again breaking temperature records, with heatwaves that trigger heatstroke deaths and school closures.&nbsp;</span><br></p><p>In Thailand, the heat is just one problem. We also face <strong><a data-mce-href="https://www.bbc.com/news/world-asia-68487230" href="https://www.bbc.com/news/world-asia-68487230" target="_blank" rel="noopener">severe air pollution</a></strong> from PM2.5 particles, primarily emitted by the <strong>burning of forests and agricultural crops</strong> such as sugarcanes and rice fields—known contributors to climate warming. In 2023 alone, Thailand saw over 15 million tonnes of sugarcane burned, primarily due to an oversupply that could drive the prices down. </p><p>Until now, it doesn’t seem like we have a proper solution to these problems.</p><figure id="figure-49252ch56clw3881i9" class=""><img id="49252ch56clw3881i9" src="https://cdn.durable.co/blocks/18uGpkHZ0LToU2wE1RUZ9RB4PaiXnvN1Qjx8Tgf5TayTpdjYMWZF3lji8vbLDC2Y.png" alt="Air pollution in Bangkok, Thailand" title="Air pollution in Bangkok, Thailand" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="small" data-aspect="16:9" data-caption="Air pollution in Bangkok, Thailand" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/18uGpkHZ0LToU2wE1RUZ9RB4PaiXnvN1Qjx8Tgf5TayTpdjYMWZF3lji8vbLDC2Y.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"><figcaption class="body-normal text-gray-500 mt-2">Air pollution in Bangkok, Thailand</figcaption></figure><h3>But what if we could transform this crisis into an opportunity?</h3><p>In regions like Europe and the U.S., startups are pioneering ways to <strong>create financial value from agricultural waste</strong>. They are converting—or at least piloting—the transformation of what was once merely burned into valuable <strong>new materials, biofuels, and even sustainable aviation fuels (SAF)</strong>. </p><p>Imagine the potential if these technologies were applied in regions like Southeast Asia, where agricultural waste is abundant due to market oversupply.</p><p>The contrast between regional approaches is stark. While Southeast Asian farmers burn excess crops to maintain market prices, Europe is proactively protecting against potential food scarcity. The <a data-mce-href="https://energy.ec.europa.eu/topics/renewable-energy/bioenergy/biofuels_en" href="https://energy.ec.europa.eu/topics/renewable-energy/bioenergy/biofuels_en" target="_blank" rel="noopener">EU's Renewable Energy Directive (RED II)</a> illustrates this cautious approach, aiming to ensure that lands currently dedicated to food production are not converted to produce biofuel crops.</p><h3>Can we produce SAF in Southeast Asia?</h3><p>Why not increase SAF production in Southeast Asia? Doing so could open up new revenue streams for low-income populations and the countries at large, while also significantly reducing carbon emissions. If initiating SAF production seems too ambitious, we could start with simpler biofuels.</p><figure id="figure-xn15ik8nshlw37vof2"><img id="xn15ik8nshlw37vof2" src="https://cdn.durable.co/blocks/cWFBl9sr2TXfnpSfWRxEEyHeEas4ldGSNVqonExlJKwIVGKOrvgOPHzIK9dZb3X4.png" alt="Inclusion of Sustainable Aviation Fuel (SAF) in EU's Net-Zero Industry Act" title="Inclusion of Sustainable Aviation Fuel (SAF) in EU's Net-Zero Industry Act" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: undefined undefined;" data-corners="small" data-aspect="16:9" data-caption="Inclusion of Sustainable Aviation Fuel (SAF) in EU's Net-Zero Industry Act" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/cWFBl9sr2TXfnpSfWRxEEyHeEas4ldGSNVqonExlJKwIVGKOrvgOPHzIK9dZb3X4.png" data-mce-style="aspect-ratio: 16/9; object-position: undefined undefined;"><figcaption class="body-normal text-gray-500 mt-2">Inclusion of Sustainable Aviation Fuel (SAF) in EU's Net-Zero Industry Act</figcaption></figure><p>These are just a few of many random thoughts...</p><p><br></p><p><br></p>

Creating Financial Value from What We Are Now Burning

<p>As we navigate through the complexities of climate change, there is a compelling urgency to seek innovative solutions that tackle climate change and offer tangible financial benefits.</p><p>That’s where carbon credits come into play—a crossroads where financial incentives meet environmental restoration.</p><h3>The Reality on the Ground</h3><p>Imagine living day-to-day, where tomorrow’s meals are your biggest worry. That’s the reality for many people engaged in activities like deforestation or intensive farming, often because they have no other financial choice. These activities are tough on the planet, but asking those involved to simply stop without offering viable economic alternatives isn't practical.</p><figure id="figure-ov62hfr25hlvtos2ej" class="selected"><img id="ov62hfr25hlvtos2ej" src="https://cdn.durable.co/blocks/1c1pQQPqRHmSmgIygAx8daWcPZCb0zHpilMw38g0nC2UcQOYbghn1AjzZLDca1At.png" alt="" title="" class="object-cover bg-gray-100 rounded-sm md:rounded-md lg:rounded-lg" style="aspect-ratio: 16/9; object-position: center center;" data-corners="small" data-aspect="16:9" data-caption="" data-positionx="undefined" data-positiony="undefined" data-fullwidth="false" data-mce-src="https://cdn.durable.co/blocks/1c1pQQPqRHmSmgIygAx8daWcPZCb0zHpilMw38g0nC2UcQOYbghn1AjzZLDca1At.png" data-mce-style="aspect-ratio: 16/9; object-position: center center;"></figure><h3>Poverty and the Climate Puzzle</h3><p>Here’s a staggering fact: over 700 million people globally are living in extreme poverty, many of whom are in regions like Africa and Asia. These individuals are hit hardest by climate impacts, yet they're often the least equipped to change their ways or adapt. So, what if we could turn their plight into a pathway for improvement?</p><h3>Power of Carbon Credits</h3><p>Carbon credits are like golden tickets for the environment. By putting a price on the reduction or removal of CO2, we give people and businesses a financial reason to preserve nature instead of destroying it.&nbsp;</p><p>Imagine a farmer who earns more by planting trees and adopting sustainable practices than by clearing land. That's the power of carbon credits—they convert sustainable actions into cash.</p><h3>Investing in Futures</h3><p>Governments can support on the national level, such as encouraging carbon-crediting afforestation and agroforestry projects that meet international eligibility standards.&nbsp;</p><p>These aren't just good for the earth; they create jobs and bring money into communities that desperately need both.</p><p>By shifting funds and focusing on teaching valuable new skills to underprivileged communities, we can make a massive difference. This isn’t just charity; it’s an investment in a more sustainable and economically diverse future.</p><h3>Wrapping Up</h3><p>Carbon credits aren't just an abstract concept—they’re a practical tool that can lift people out of poverty and combat climate change at the same time. They show us that environmental actions can have real, positive economic impacts.&nbsp;</p><p>As we look forward, it's crucial to support and expand these initiatives, ensuring that tackling climate change also means building a better world for everyone involved. Now, that's a win-win scenario worth talking about!</p>

Carbon Credits - Turning Climate Challenge into Financial Opportunity

<p>The call for transparency and accountability in supply chains has reached a crescendo, particularly within the EU. Recent legislative developments, such as the final text approval by the European Parliament of the <strong><a href="https://www.hrw.org/news/2024/04/24/eu-parliament-approves-supply-chain-law?utm_source=marketing%40besirius.io&amp;utm_medium=newsletter&amp;utm_campaign=keeping-up-with-esg-april-2024" target="_blank" rel="noopener" data-mce-href="https://www.hrw.org/news/2024/04/24/eu-parliament-approves-supply-chain-law?utm_source=marketing%40besirius.io&amp;utm_medium=newsletter&amp;utm_campaign=keeping-up-with-esg-april-2024">Corporate Sustainability Due Diligence Directive (CS3D)</a></strong>, are poised to reshape how large corporations manage their supply chains, emphasizing stringent human rights and environmental standards.</p><p>Blockchain technology emerges as a key solution, offering an immutable, transparent ledger and smart contracts to ensure and automate compliance throughout the supply chain.</p><h3>EU finally adopts supply chain law</h3><p>The CS3D stipulates that large entities are to conduct thorough due diligence concerning human rights and environmental impacts across their global supply chains. Each EU nation will establish supervisory bodies with the authority to investigate and impose sanctions on non-compliant companies, with penalties potentially reaching up to 5% of a company's net annual turnover. Such stringent measures make the quest for compliance not just ethical, but a survival strategy in the modern business landscape.</p><h3>Blockchain as a solution to create transparency</h3><p>Herein lies the strategic brilliance of blockchain technology. Blockchain is inherently designed to foster transparency, creating an indelible ledger of transactions that can verify the integrity of every product movement, from origin to consumer. By implementing smart contracts on the blockchain, companies can automate and record every compliance step, ensuring that each product component meets the required standards, without the need for intermediaries.</p><p>Blockchain to directly reward suppliers who do it right &nbsp;<br>One of the groundbreaking applications of blockchain is the ability to directly and automatically reward suppliers for adjusting toward sustainable practices. If they do more, they can be rewarded more.</p><p>Brands can use blockchain-based smart contracts to reward suppliers for meeting environmental and compliance benchmarks securely and transparently. This not only helps in adhering to regulations but also supports a shift towards sustainable practices across the supply chain.</p><h3>Challenges and opportunities</h3><p>The real-world application of blockchain technologies is not without challenges. The entire value chain, from major stakeholders like brand owners and shareholders to the smallest local suppliers, needs to cooperate.</p><p>There's a significant barrier in terms of knowledge and resource allocation that needs addressing. Large corporations often weigh the financial implications heavily, while smaller suppliers might lack knowledge or resources to implement such technology.</p><p>Despite challenges, numerous startups are paving the way in various industries eg. agriculture, textiles and metals, integrating blockchain to create transparent and sustainable supply chains. These pioneers are not only adhering to new regulations but are also setting stage for a new standard in global trade practices.</p><p>As these technologies become more accessible and as knowledge spreads, the potential for widespread adoption increases.</p><h3>The Road Ahead</h3><p>The journey to a fully transparent global supply chain is complex and challenging. However, the integration of blockchain technology offers a promising path forward. As regulations such as the CS3D come into effect, the incentive for companies to adopt such technologies will only grow stronger, driven by the dual forces of compliance and market competition.</p><p>For companies and suppliers eager to make a change or simply learn more about these opportunities, now is the time to engage with technology experts and innovators in the field.</p>

Blockchain for Transparent Supply Chains - Necessity in Today’s Regulatory Environment

<p>In August 2023, the European Commission launched a groundbreaking initiative, the <strong>Carbon Border Adjustment Mechanism (CBAM)</strong>, which is aimed to incentivize exporting countries into the EU to decarbonize their industries.</p><p>The CBAM will initially target carbon-intensive goods:<strong> cement, iron and steel, aluminium, fertilisers, electricity and hydrogen</strong>.</p><p>This policy can reshape the trade dynamics between ASEAN and the EU significantly. ASEAN's ability to adapt to the CBAM will determine not just future trade volumes but also influence broader economic relations. For businesses within the region, the transformation towards greener processes is no longer optional but a critical path to maintaining and expanding market access.</p><h3>What Exactly is the CBAM?</h3><p>Described by the European Commission as a strategy to "<em>put a fair price on the carbon emitted during the production of goods entering the EU</em>," the CBAM is more than just a regulatory measure. It is a catalyst for global industrial transformation, promoting cleaner production methods outside the EU to ensure that imported goods stand on equal footing with those manufactured within the bloc.&nbsp;</p><p>As of October 2023, CBAM entered a transitional phase where importers begin to disclose the greenhouse gases (GHG) embedded in their products, leading up to a full implementation in 2026 that will require the acquisition and surrender of emission certificates.</p><h3>Challenges or Opportunities for ASEAN</h3><p>The ASEAN region, a vital cog in the global manufacturing landscape, faces unique challenges and opportunities under the CBAM's framework. As ASEAN is the EU's third-largest trading partner (after the US and China), the stakes are high for nations like Indonesia, Malaysia, Thailand, and Vietnam, known for their substantial exports in CBAM-targeted sectors.</p><p>The CBAM isn't just a regulatory hurdle; it's a competitive lever. ASEAN businesses that can pivot quickly to sustainable practices not only mitigate risks but also stand to capture increased market share in the EU. The mechanism encourages an accelerated green transition, turning potential vulnerability into a strategic advantage.</p><h3>Strategic Impact on ASEAN</h3><p>As we move closer to the definitive phase of the CBAM in 2026, ASEAN countries must leverage this period to align more closely with global sustainability targets. The transition phase is a crucial time for businesses to reevaluate their processes, engage in technological upgrades, and possibly, redefine their economic narratives towards more sustainable and resilient practices.</p><p>In essence, the <strong>CBAM is more than a policy—it's a call to action for ASEAN</strong>. It offers a profound opportunity to lead in the global shift towards sustainability, turning environmental responsibility into a palpable competitive edge in one of the world’s largest markets.</p><p>source: <a data-mce-href="https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en" href="https://taxation-customs.ec.europa.eu/carbon-border-adjustment-mechanism_en">European Commission</a>&nbsp;</p>

Blog

Creating Financial Value from What We Are Now Burning

Carbon Credits - Turning Climate Challenge into Financial...

Blockchain for Transparent Supply Chains - Necessity in T...

CBAM – Hurdle or lever to ASEAN-EU trades?