India’s Tata Steel Limited has launched a ‘carbon bank’, a virtual repository through which carbon dioxide will become a value-creating asset for future usage, the company said in a statement on Thursday, July 11.
Carbon dioxide is widely recognized as a harmful substance emitted due to use of various fossil fuels in industry and transportation. The steel industry in particular relies on coal and other fossil fuels in its production line resulting in the release of large quantities of carbon dioxide, the company said.
The carbon bank is aimed at measuring and managing carbon dioxide savings generated from various sustainable projects and these savings not only contribute to environmental goals but also hold the potential of generating revenue that can be reinvested into further decarbonisation efforts, the company said in the statement.
Initially, Tata Steel has identified decarbonization projects that can reduce CO2 emissions in one or more production processes and the carbon savings from these projects are rigorously monitored by an independent auditor, who then verifies the company's CO2 savings claims following the appropriate ISO system.
Upon verification by auditors, a carbon savings certificate is issued by the auditor and virtually deposited in the carbon bank, the company said.