Paul Sébastien, Director, Carbon Offset Certification, is a former energy and carbon trader in an energy group, investment bank and hedge fund. He has lead energy transition and development programs in emerging markets for national agencies and was also a commodity and sustainability expert and an advisor to the United Nations.
Paul advises innovative energy companies, founded a commodity tech start-up, and also develops nature-based carbon offset programs in central America.
What is the Carbon Offset Certification company?
Carbon Offset Certification is a Swiss-based and global independent label that certifies ‘green’ claims on commodity transactions, products, or services (e.g., maritime, aviation solutions) through a third-party assured process where GHG emissions are calculated, verified, and offset accordingly to international recognized best practices, standards, and regulation.
I co-founded this initiative company with Christophe Riedi, the general secretary of the Commodity Trading Association and Geir Robinson, former chief risk officer at BP Trading, to create a robust system that serves the growing global demand for verifiable green initiatives. A couple of years ago we identified a clear gap in the market: the lack of transparency and standardization in the claims companies made about their sustainability efforts. As markets began to demand more sustainable practices, we saw a need for a service that could validate these claims in a credible way.
Hence, we developed a Carbon Offset Certification protocol with a group of industry experts including professionals from leading organizations such as such as Bureau Veritas and KPMG, as well as experts in sustainable finance from Swiss sustainable finance, and carbon industry specialists. The independent certification protocol forms the basis of our carbon offset certification label which certifies the environmental claims made by companies regarding their products, services, or solutions – a process crucial for entities seeking to substantiate their green credentials.
Tell us a little about your career in the carbon markets?
My career started with the energy sector over two decades ago, focusing initially on trading energy commodities like gas and electricity in the banking sector. This role provided me with a foundational understanding of the energy markets’ dynamics and complexities. As I progressed, I became increasingly involved in projects aimed at promoting sustainable energy usage, which led me to manage large-scale energy transition programs in Africa. This was a pivotal moment as it shifted my focus towards sustainability.
In my time with the United Nations as a carbon expert, I collaborated with international teams to develop strategies to mitigate climate change impacts. These experiences highlighted the urgent need for standardized approaches in measuring and verifying environmental impacts, which led me to establish the carbon offset certification company.
Could you describe the process of Carbon Offset Certification. How do you ensure its credibility and maintain transparency?
Our certification process is rigorous and based on 3 steps:
- Carbon footprint calculation: a detailed assessment of the product or service’s carbon footprint, based on recognized carbon accounting methodologies like the GHG Protocol, ISO14064
- Offsetting with the retirement of quality carbon credits aligned with to ensure accuracy and consistency.
- Third-party verification conducted by an independent verification auditor such as Bureau Veritas.
Transparency is maintained through detailed reporting and public disclosure of the certification results. Each certified company is required to provide open access to information regarding their carbon offsetting practices, including the types and sources of carbon credits used. This ensures that all stakeholders, including consumers and regulatory bodies, can easily verify the environmental claims being made.
How does the certification process help companies navigate the complex regulatory environment concerning environmental claims?
Our certification provides a clear framework for companies to follow, which aligns with current regulatory requirements. This framework helps companies ensure that their environmental claims are not only compliant with laws and regulations but also robust against future regulatory shifts. By adhering to our certification process, companies can safeguard themselves against accusations of greenwashing, which is increasingly subject to legal penalties and consumer backlash.
Could you share examples of how your certification has positively impacted companies?
Certainly. Mitsui OSK Lines, a major player in the shipping industry, has used our certification to validate their efforts in reducing the carbon emissions of their fleet. This has not only improved their compliance with global shipping regulations but also enhanced their brand reputation among environmentally conscious customers.
In the hospitality sector, a Gulf Group, Five Holdings, has leveraged our certification to demonstrate the carbon neutrality of their luxury services, including private jets. This certification has enabled them to attract a clientele that values sustainability, thereby expanding their market base and improving customer loyalty.
Do you also help companies prepare for the certification?
Yes. We provide comprehensive advisory services that help companies understand their carbon footprint, explore effective reduction strategies, and communicate their efforts transparently. Our consulting extends to helping companies navigate the evolving landscape of environmental regulations, ensuring that their sustainability reports and marketing strategies are both effective and compliant. This holistic approach helps companies not only meet regulatory requirements but also gain strategic advantages in their respective markets.
We are also collaborating with several countries. For example, we are working with the government of Djibouti, which has established Africa’s first Sovereign Carbon Agency. This agency has created a carbon contribution scheme, modelled after Europe’s Emissions Trading System (ETS), where major polluters in the aviation and maritime sectors contribute to mitigate their carbon emissions. This scheme not only addresses the carbon footprint in Djibouti but also generates funds that support impactful environmental programs. These programs aid vulnerable communities by financing energy transition and projects focused on carbon avoidance and sequestration. Furthermore, we are engaging with other West African governments that are pursuing similar environmental initiatives.
What trends are you observing in the adoption of carbon offset certifications across different sectors?
There is a growing trend towards sustainability across all sectors, particularly in industries with significant environmental impacts, such as manufacturing, energy, and transportation. These industries are increasingly adopting Carbon Offset Certification as part of their environmental strategy to meet both consumer expectations and regulatory requirements. We are also seeing a rise in services industries, such as hospitality and finance, using certifications to enhance their sustainability credentials.
Since 2022, there has been increased scrutiny over the Green Claims of companies which has led to various governments drafting regulations around them and we will also a witness a flurry of court cases. Today, industry needs to embrace the highest standards of verification and transparency in carbon offsets. While ICVCM and VCMI are doing a good job of regulating the supply and demand of carbon credits, it is imperative that companies on their own provide a clear and verifiable path to sustainability claims. This will help build trust and credibility with their stakeholders. Our process is designed to withstand scrutiny from regulators, environmental groups, and the public, which is critical in an era where greenwashing can significantly harm a company’s reputation.
Looking forward, how do you see Carbon Offset Certification influencing global corporate strategies?
Carbon Offset Certification is set to play a pivotal role in shaping corporate strategies by providing a clear and credible means of demonstrating commitment to sustainability. As global pressure to address climate change intensifies, this certification will become a crucial part of corporate governance. It will not only help companies manage their environmental impact but also position them favorably in a competitive market where sustainability is increasingly a determinant of business success.