Reducing Emissions While Increasing Revenue May Be Tricky — But Carbon Credits Could Give Some Companies An Upper Hand

Picture credit: Gary Chan on Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

World leaders gathered in Glasgow, Scotland, late last year to discuss international agreements on climate change at the United Nations Climate Change Conference (COP26).

One of the key goals at COP26 was to establish international rules for a global carbon credit market. Some progress was made in that area with the establishment of a market where countries can trade carbon credits.

However, much uncertainty remains as to how that may work on an individual company level. An organic waste-processing company says it is continuing to focus on its own voluntary carbon credit program, reducing environmental pressure and making money at the same time.

SusGlobal Energy Corp. SNRG said on May 24th during the release of its first-quarter results that it expects to monetize its recently established carbon credit program in the second quarter of 2022. 

The Toronto-based company, which processes organic waste from municipalities and produces regenerative products such as organic fertilizer from such waste, signed an agreement with Bluesource Canada ULC in November to develop and market greenhouse gas credits from its main site in Belleville, Ontario. Bluesource counsels organizations across North America on their climate and environmental goals.

How Does it All Work?

Landfills are among the largest emitters of greenhouse gasses. By diverting organic waste away from landfills and instead of processing it at its facilities, SusGlobal reports that it both reduces emissions and produces regenerative products such as premium fertilizers that can be found at major retailers such as Home Depot Inc. HD.

Bluesource audits the tonnage of the processed waste to determine the number of carbon credits SusGlobal should receive. From there, the company sells its credits to large emitters who need to offset their own carbon footprints.

It’s a model that has commonly been used by other companies such as electric vehicle producer Tesla Inc. TSLA.

Eventually, SusGlobal’s revenue from the carbon credits will be dwarfed by the amount of revenue from the waste it processes as increasing regulation determines less frequent use of landfills, SusGlobal CEO Marc Hazout said.

“It’s a win-win situation for SNRG, whose model has always been to divert organic waste from landfills and then produce regenerative products as part of our circular economy model,” he said.

For now, the incentivized carbon credit system is voluntary, but world governments, as shown by the COP26 frameworks, are leaning toward legislation that would require zero emissions and thus increase the value of carbon credits, Hazout noted. 

“Eventually we’re going to graduate toward a mandatory market, and those are the markets that were discussed at COP26,” Hazout stated.

This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.

Posted In: Partner ContentSusGlobalPenny StocksEmerging MarketsMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.