Carbon finance developer Motion Energy has made its first sale of a new carbon credit scheme to fund electric vehicle (EV) infrastructure for vulnerable communities.
Melbourne-based freight company Zilch Forwarding, a known supporter of sustainable approaches to transport supply chains, has become Motion’s first customer.
Zilch’s intention, though, was not just to offset emissions but to demonstrate its commitment to supporting clean air and better health outcomes around the world, and it has committed to purchasing more credits in the future to help vulnerable regions to kickstart their EV uptake.
According to Motion Energy, each ME Impact credit purchased will reduce the equivalent of one tonne of CO2 from being released through EVs. With 99 per cent of the world’s population living in air that exceeds acceptable pollution levels, transport electrification will become a key mitigator of poor air quality, it says.
With transportation now driving 23 per cent of global greenhouse emissions and 20.9 per cent of Australia’s national greenhouse gases, Motion Energy says switching to electric vehicles is critical.
Director Ben Cavanagh says the company’s EV partners include leading charging networks, fleet operators, software providers and progressive councils nationwide.
“If we are sincere about addressing climate change and transport emissions, we must place a financial value on the environmental benefits of investing in clean transport technology,” he says.
Cavanagh says ME Impact credits provide a measurable way of showcasing the economic worth of moving to electric transport, making it easier for organisations to embrace electrification. With global transport emissions close to 8 billion tonnes of CO2 each year, transport pollution impacts everyone, everywhere, he says.
“Several trillion-dollar mountains need to be climbed when it comes to investment in clean transport over the coming decade. The transition will not happen at the rate it needs to unless we start to place a value on clean air as a global community.”
Chief executive of Zilch, Michael Blake, says that businesses do not consider impacts when transporting products, but becoming Motion’s client now would allow future clients to learn about transport decarbonisation from Zilch.
“Certified by Climate Active, Zilch is always looking at additional ways to strengthen that. With many companies still working through their Scope 3 emissions assessments, Zilch wants to be able to help them do this and believes its partnership with Motion Energy is the way to go.”
Chief executive of the Electric Vehicle Council, Behyad Jafari, says with transport due to become the highest source of emissions by 2030, we need as much innovation as possible to address climate change.
“It’s great to see Zilch and Motion Energy working together to deliver a meaningful market-based incentive for drivers and businesses to make the switch to EVs, Jafari says, and initiatives like this could be the catalyst for significant change in a fast-growing, dynamic EV industry.”