The “carbon footprint” is the common term for the total amount of carbon dioxide (CO2) and greenhouse gas (GHG) emissions released into the atmosphere as a direct result of the activities of a particular individual, organization or community. The carbon footprint can be calculated and evaluated. It measures the impact on the environment of our actions and decisions. For example, based on data obtained, we can lead a more sustainable existence by changing our lifestyle or purchasing habits. Organizations can also improve energy efficiency in business or production processes and use renewable energy sources. The carbon footprint of organized events can be reduced by careful consideration of the method of transportation of participants and organizers, the choice of location and locality of food providers, economical use of packaging, recycling of garbage and the use of electricity from renewable sources.

From Words to Actions

At the Institute for Strategic Solutions (ISR), we designed the “From Words to Actions Project”, which gave us the opportunity to organize the first regional Net-0 carbon event in Slovenia. The purpose of the project was to gather and connect representatives of corporations and companies, politicians, non-governmental organizations, international agencies, as well as innovators of breakthrough solutions and representatives of the financial community, at one event.

The co-organizers of the event were the Ministry of Foreign Affairs of the Republic of Slovenia and Spirit, the public agency of the Republic of Slovenia for the promotion of entrepreneurship, innovation, development, investment and tourism.

The red thread of the program was carbon neutrality and zero emissions. All important stakeholders and partners agreed that these are the key proponents of a sustainable future. However, strategies differ and seldom apply to entire organizations as well as their supply chains, and this inclusion presents unique and difficult challenges. The participants and guests at the event gained access to new ideas and integrated solutions – and most importantly, a network of potential partners. When organizing the event, we were committed to careful monitoring, as well as to planning measures to reduce emissions and thus benefit our environment. We also made sure that we balanced emissions released into the atmosphere by planting trees so that there was a Net-0 end result.

The ISR’s Approach to the Challenge

The participants helped each other using international standards for planning low-carbon projects and using international conversion factors. These established standards do not exist yet for Slovenia, except in the electricity grid. However, we followed the ISO 14064-2:2019 standard and guidelines for quantification, monitoring and reporting of greenhouse emissions for each individual part of the project. As part of the methodological framework, we compared the basic (business as usual) and alternative (Net-0) scenarios for the event organization, preparation and implementation. We carefully evaluated and verified all data based on each identified activity and took the steps necessary for the successful implementation of the Net-0 event. This included the arrival and transportation of organizers and participants, careful selection of the local and energy-efficient cooling of the space. In addition, we served local food and drinks, gave local gifts to the guests, recycled garbage, monitored transportation of local food, to and from the event and used low-emission electronic devices in sound and lighting the event.

We successfully reduced our carbon footprint by:

• using public train service as transport for participants and organizers (round trip)
• selecting an inner space that did not require cooling
• choosing a local food provider and a vegetarian menu for the banquet
• economical use of packaging and recycling of garbage
• using electricity from renewable sources

When collecting data, we adhered strictly to the concepts of relevance, completeness, consistency, accuracy, transparency and conservatism. We took special care when choosing food for the event. As a starting point, we used specific modules in the Gastronomy and Hotel Services Guide (Zalar et al 2008), which systematically outlines all the guidelines and know-how that eco-friendly chefs utilise. It also prescribes energy-efficient technological processes of food preparation, which helped us to select suitable food providers and vegetarian menus. It also showed us how to calculate the carbon footprint of the banquet. By choosing a local food provider, we saved as much as 90% of the carbon footprint and we also saved 31% of the carbon footprint by deciding to serve only vegetarian food at the event, in comparison to the basic, business-as-usual scenario, and through the economical use of packaging and recycling, we succeeded in reducing the carbon footprint by as much as 87%, again, compared to the basic, business-as-usual scenario.

Committing to the organization of a carbon-free event was a brave decision, which is why we prioritized reducing the event’s carbon footprint, which we successfully achieved using all the strategies above. We undertook the final calculation of the footprint ourselves, as existing tools are insufficiently accurate, be it that they are intended for the overall operations of companies or multi-day events. We attributed data to certain activities and multiplied them by two conversion factors. In the basic (business-as-usual) scenario, we used the International Hydropower Association as a source of data, and in the alternative (Net-0) scenario, we used the conversion factor used by the Energy Agency in the document Total Remaining Composition of Production Sources for 2021. This takes into account the share of electricity production from fossil fuels, based on the rest of the European composition of production sources and according to the data of the International Hydropower Association. We succeeded in achieving total residual CO2 emissions of 0.023kg CO2/kWh and in the case of the Energy Agency 0.872kg CO2/kWh.

At the Event – Details Matter

Or to put it another way, is it permissible for one single participant to arrive on a trans-oceanic flight, and release carbon emissions into the atmosphere? In addition to the choice of transport used, the other most important factor to consider is catering. Careful attention should be paid to the choice of the food provider, and also to the food that is served. It makes eco-sense to avoid meat, even if local beef has a smaller carbon footprint than Patagonian beef!

However, even the lowest amount of carbon produced must be removed from the atmosphere, and this can be attained by planting trees, not alien species, but indigenous ones from Slovenia. In the case of our event, the Carbon produced amounted to 506kg of CO2. To counteract this, we will plant 51 saplings of native Maribor tree species and thereby “return” the CO2 we emitted back to nature.

“The trend towards green transition has been around for some time now, however, the geopolitical situation we are currently facing is new. I believe that the common denominator of all the issues raised and the future itself is technology. We have a lot of technology available today to help accelerate decarbonization. However, I am convinced that the main driving force for the future of humanity and real changes in collective integrity will be based on individuals changing their lifestyles,” said Jože Bajuk, a member of Petrol Group’s management board. Blaž Brodnjak, Chairman of the board of NLB, is also convinced that responsibility does not start with companies, but with each individual. “Until we change our habits, we cannot talk about change . We need a focus, a clear vision and clearly defined priorities. But everyone has to start with themselves, in their everyday life”. Brodnjak added.

The unique feature of the Net-0 event was in its execution, as all activities were environmentally friendly and operated with the lowest possible carbon emissions. The co-organizers of the event were the Ministry of Foreign Affairs of the Republic of Slovenia and the public agency, Spirit. The Municipality of Maribor hosted the event. Maribor has been a leading example of how a local municipality shows positive action and direction on the road towards good environmental initiatives.

“We can all physically feel the effects of climate change on our skin, and I hope that this awareness will cause a positive shift to a green transition at all levels – that is, at the global, regional, state and local levels of organizational and business activities and processes,” said State Secretary Samuel Žbogar at the start of the event.

“A carbon-free future may have seemed like a distant dream years ago, but today it is clear that we need to act as a society and that by taking decisive steps we can influence what kind of future we will shape for ourselves and our descendants. Today’s participants consisted of partners and companies that all understand the importance of green transition and actively strive for it. “This is proof that we are taking steps in the right direction,” said Tine Kračun, Director of the Institute for Strategic Solutions (ISR), in his address to the participants. “ISR, together with the co-organizers, the Ministry of Foreign Affairs and the public agency Spirit, have successfully launched the first Net-0 event in the region.’’

“When we talk about the green transition, it sometimes seems that we are behaving like an elephant in a china shop. Data shows that the topic of so-called greenwashing has exploded in recent years. Just talking about being carbon-free is not enough. For this event, we developed a methodology that complies with ISO standards and they have been implemented in various scenarios throughout the organization and execution of this conference. When documenting and talking about these activities, it is essential to adhere to the principle of transparent, consistent and accurate collation of information, in conjunction with transparent reporting.” Dr. Jure Stojan, Director of Research and Development at ISR, said in his speech.

Representatives from powerful and successful companies alongside regional players discussed how companies should approach the green transition and what steps they must take to achieve their goals. They presented solutions to the most common dilemmas and challenges they are currently facing. The discussion was also about the questions of who, what and how companies should deal with carbon neutrality and how to measure the effectiveness of steps taken to create a common living space that is significantly less harmful to the environment – and ourselves.

Given the current geopolitical situation and multi-level crisis created by the war in Ukraine and the related challenges in the field of energy supply and climate change on one hand, and our goals to save the environment on the other, one of the key questions is how will the economy adapt to these new conditions? And in addition – how long will adaptation to the constantly-changing conditions take? And to what extent is it even feasible?

According to Jože Bajuk MA, a member of Petrol Group’s management board responsible for the Energy and Solutions development pillar, the situation related to the Russian invasion of Ukraine, has revealed a dependence on fossil fuels and that this is a very complex issue as it conflicts with the current concept of the green transition.

‘The geopolitical situation we are now facing, however, is new, and I believe that the common denominator of all the issues raised as well as the future lies in technology. We have a lot of technology available today to accelerate decarbonization. Nevertheless, I am convinced that the driving force for humanity and real changes in morality will be based on the integrity and lifestyle of each individual.”

Tomaž Orešič, the procurator of Resalta, who deals with energy solutions, added: “It is important to increase resistance to price fluctuations – Europe has decided to invest in renewable technologies and there is no other way forward. What can the industry do? First, it must reduce consumption wherever possible.”

In line with the goals of the Paris Agreement, EU member states have agreed to strive to make the EU the first climate-neutral economy and society by 2050 and the EU has committed to reducing emissions by at least 55% (compared to 1990) by 2030. So far, calculations show that we are still far from the set goals, which means that we will most likely not be able to stop global warming within the set time frames.

Blaž Brodnjak, Chairman of the Board of NLB, is convinced that responsibility does not start with companies, but with each individual. “Until we change our habits, we cannot talk about change.” Brodnjak added, “We need focus, a clear vision and clearly defined priorities. But everyone has to start with themselves, in their everyday life”.
Jože Hebar, director of Elektra Maribor, pointed out an example. “We are facing a large increase in demand and interest in electrical devices that customers want to place on their roofs. This is a clear sign that due to the vulnerability of electricity, we need to find new alternatives.”

“At NLB, we are committed to sustainability within the organization of the company and also in the performance of our own activities,” emphasizes Blaž Brodnjak. “For example, we support working from home, which is consistent with a smaller need for workspace, we support the United Nations principles for responsible banking and we have stopped supporting all companies whose businesses are tied to the consumption of coal.”

The conversation was moderated by Večer newspaper journalists Andreja Kutin and Mitja Sagaj.

In addition to the fascinating content, the most significant feature of the From Words to Actions Net-0 event was its design and implementation. ISR designed it in such a way that it followed the principles of locality, expedient logistics and low-carbon emissions, where they actively used digital tools and which did not cause a significant impact on the environment, as a result, the event placed less carbon burden on the environment.

Thanks to Slovenske Železnice, participants and guests arrived at the event by public transport – train. At the main train station in Ljubljana, they boarded the train to Maribor at 8 a.m. During the journey, they received digital links to interesting ad relevant content that they could read on their laptops, and at the event, food and drinks were served from local suppliers. At 10 a.m., Saša Arsenovič, the Mayor of the Maribor Municipality, welcomed the participants and guests at Maribor’s main railway station. Maribor has been a leading example of a local area with proactive and successful environmental practices. The participants and guests then rode their bikes towards the Minorite Church, where they attended the first regional Net-0 event.

The event was also attended by 23 diplomats and delegations from foreign embassies. The event was supported and co-organised by the Ministry of Foreign Affairs of the Republic of Slovenia and the public agency, Spirit.

Photos by courtesy of Matej Pušnik (ISR).

It was a pleasure to take part in the conference. We advise clients across the Adria and Balkans region and beyond, which includes both EU accession and member countries. EU law is therefore the backbone of most of our activities. Regardless of the type of client, specific mandate or jurisdiction, we are increasingly guided by developments in EU law, which are becoming increasingly relevant across the board. This includes EU’s legislative framework to combat climate change – the Fit for 55 legislative package, which is taking shape, as its ramifications will affect many aspects of business and law. In this sense, the Slovenian experience is especially interesting as perhaps our closest gateway to EU’s best practices and the conference provided a thorough insight and inspiration for our work. The conference was also an excellent opportunity to discuss this important topic with people who deal with it from different aspects and learn from their experience. I am deeply convinced that your conference created an enjoyable background for a prolific exchange of knowledge and different views, in which we were more than happy to participate and contribute.

Challenges in our region are numerous. At the level of countries, economies and the region as a whole, major steps lie ahead to change the energy mix as it remains heavily reliant on coal. Major plans for investments in renewable energy in the coming decades are being announced to catch up with EU plans, which are aiming for a 55 percent emissions reduction by 2030 and reaching net zero by 2050. To achieve this, another important challenge for the countries of the region is to introduce carbon pricing systems and viable emissions trading schemes, which are in line with the systems that have already been in place in the EU for many years. At the level of businesses, the biggest challenge will be to successfully incorporate the inevitable need to reduce carbon emissions into their strategies and adjust their business models to accommodate this overarching objective. For many companies, this will require significant changes which begin with a fundamental shift in strategic priorities and an entirely new approach to business. And these changes should take place with a sense of urgency, as there is not much time left.

We are closely following the developments with one of the aspects of the Fit for 55 package that, once implemented, is likely to have an immediate and direct effect on the regional economies and this is the Carbon Border Adjustment Mechanism (CBAM). Dubbed the “carbon tax”, CBAM is a levy that the EU is aiming to introduce on the imports of products that generate high emissions in their manufacturing processes. This way, the EU is hoping to achieve a level playing field on the internal market. Regarding products manufactured in the EU, they already have to pay for carbon emission allowances under the unions ‘ emissions trading system. The introduction of the CBAM is likely to mark a tectonic shift in international trade that will affect whole supply chain including manufacturers, customers and consumers. Planned to be phased in starting 2023, the CBAM will initially include cement, steel, fertilisers, iron, steel, aluminum, and electricity from coal etc., but is likely to have a spillover effect on the costs of any finished goods that use these as components in their production processes. Our firm is advising on the multi-layered work that will be required both from governments and businesses to address these changes.
From a broader perspective, we are also working on some of the largest, most interesting and innovative renewable energy projects in the region. This field will see significant growth in the coming years and we are pleased that our team has the strength of expertise and unparalleled experience to fulfill the most demanding requirements in the area. We are looking forward to offer our knowledge and practice supporting our clients in diversification their energy portfolio to renewables, which could have many positive effects not only for their business but for our healthier environment.

The economies of the Western Balkans are likely to be significantly affected by the introduction of CBAM. The EU accounts for nearly 70 percent of the region’s exports and products potentially affected by CBAM are an important part of the economy. The levy is likely to affect pricing and, therefore, the competitiveness of products imported into the EU market. A lot of work still needs to be done across the region to mitigate these risks. The process also involves both governments and lawmakers, who will take steps to ensure there is a basis for the introduction of functional local carbon emissions exchange systems, and businesses, that must be much more conscious of the impact of their production processes and the financial costs of their CO2 emissions that they will soon have to deal with. Failing to act on both ends may have far-reaching implications for the economies of the region. A firm renowned for its expertise in EU law, Gecić Law is proud to be the only law firm in the region with the experience and expertise to advise both sovereigns and affected companies on this highly specific and complex set of issues.

It is widely recognized the position of EU as a leader in green transition on global level. This is where proposals like CBAM helps to provide more structural market that is still looking to define itself at larger scale. By imposing environmental policies like carbon tax on imports via the CBAM the EU hopes to affect external change, by driving change from the inside-out. The powerful single market of the EU could have serious impact when it comes to conversation regarding the carbon and climate. EU through enacting environmental regulations that influence the global business stage raises standards all across the world. Due to factors including the size of internal market and its importance on global level, businesses who trade worldwide may discover that maintaining lower standards in non-EU markets is not convenient from an economic, legal, or technical standpoint.

ESG is a very closely related but an even broader topic. The main challenge is that many businesses still take a short-term approach, seeing adherence to ESG standards as a “nice-to-have” voluntary action, rather than a strategic business shift. However, failing to prepare and adapt may soon significantly affect their ability to compete in the market, sell their products and have access to financing. Regulators, investors, creditors, customers, and other key stakeholders will increasingly insist on responsible business conduct in these vital areas.Therefore, we help our clients by closely monitoring government policies updates and have a smooth channel to communicate with government authorities with aim to fully comply their business with most recent developments in environmental policies. Beyond the reputational impact, many of these standards are becoming mandatory. As the region moves on in its EU accession process, we advise clients on emerging EU rules on ESG that are likely to define the business environment in the years to come, and how this may impact the Western Balkans.
As one of the few independent law firms advising in this area, we aim to provide bespoke solutions, taking into account the specific position and needs of each enterprise. We carefully analyze both the risks and benefits and prioritize our advice on how to best adapt from a regulatory, strategic, financial and operational standpoint.

It is most important that businesses take a long-term, strategic view of ESG considerations and understand how ESG standards can help their business adapt and grow. Greenwashing is a practice aimed at achieving short-term public relations or marketing gains. Ironically, as we have seen in many examples, greenwashing may have truly harmful effects and destroy the reputations of businesses. The truth is businesses will quite simply no longer be able to afford to greenwash as the regulatory framework develops. Even more importantly, key stakeholders are increasingly becoming aware and active, and are no longer willing to accept corporate behavior which does not adhere to standards in these areas. And they are especially sensitive to businesses being untruthful about their practices. This does impact enterprises in our region sometimes more than they realize.

There are no simple solutions and ready-made recipes. Each company needs to look not only at the totality of its operations but increasingly at its supply chain and carefully balance and incorporate solutions. There are no silver bullets as every option has its advantages and disadvantages, and these need to be carefully weighted. From the perspective of our region and profession, it is also up to regulators and lawmakers to set the framework and define standards, a process that is gradually coming to fruition. At least for the moment, one must also take into consideration the current energy crisis and its potential effects on the path to net zero. At the same time, we should always keep in mind that ultimately there is no alternative but to persevere, as fundamentaly this is an existential issue for humanity as a whole.

The purpose of the event is to connect representatives of corporations and companies, politicians, non-governmental organizations, international agencies, innovators of breakthrough solutions and representatives of the financial community. The CEO Panel will focus on carbon neutrality and zero emissions, since virtually all major stakeholders and partners agree that they are the key elements of the future. However, strategies differ and rarely apply to entire organizations with their supply chains, which presents unique challenges. Our aim is to offer insights about ideas and integrated solutions – and to build bridges between potential partners.

The event is co-organised together with the Slovenian Ministry of Foreign Affairs and SPIRIT Slovenia – public agency of the Republic of Slovenia for the promotion of entrepreneurship, innovation, development, investment and tourism. It will take place at the Minorite Church and Monastery in Maribor (Vojašniški trg 2, 2000 Maribor), on 6 September 2022.

Please register HERE to join us on 6 September 2022 in Maribor, Slovenia.

Electricity is like food and water for people living in 21st century and is an essential power that drives our daily lives and our businesses. With the growing human population and growing need for electricity in our lives, throughout the history we have discovered many ways for its production (e.g., fossil fuels, nuclear energy, wind turbines, solar and hydro energy). 

But one of the major challenges the world has been facing in last years is how to generate more (and enough) electricity in an environmentally friendly and sustainable manner. We can find the answer in transition to green, producing fewer negative effects as with fossil fuels. Going green is also the answer when we consider changes in global energy markets and growing dependence on some resources.

Green energy: clean and renewable 

Green energy is coming from natural resources like sun, water, wind, biomass, geothermal energy. It is renewable and clean, with a lowest carbon footprint possible. Renewable means that it comes from sources, constantly being naturally replenished (sun, water, wind) and clean means that it releases far less greenhouse gases and pollutants into the air. This is not just good for the planet but is also good for the health of people and animals that breathe this air. Great example of renewable, green and clean energy comes from wind, environmentally friendly, self-replenishing and non-polluting source. But not all sources are green. Power generation that burns organic material from sustainable forests may be renewable, but due to the CO2 produced in the burning process, is not necessarily green.

Slovenia produces around 85 % of its own electricity (and the demand on consumption side is growing), the rest is imported. Renewables play an important role in electricity generation, but with current consumption rising, in short term, they are not expected to become the only source. The structure of electricity use is constantly changing due to heat pumps, air conditioning and increased electromobility.

Now the main source of green electricity is water. Solar and biomass energy follow, with only a sample of wind power; even though wind has become the most important renewable source of electricity in the EU in 2017, displacing hydro.

Electricity distribution networks – backbone of the green energy transition

Electricity distribution networks are acting as an essential infrastructure for sustainable development and the backbone of the energy transition providing advanced electricity services as key to successfully implementing the transition to a low-carbon society. One of main challenges is to continue with heavy investments in reinforcing the distribution network, aiming to increase capacity and to integrate distributed resources. Also digitalisation of the network in order to enable new services for users, to limit peak demands, provide flexibility in usage and the automation of processes is needed. By creating a smart grid, we want to ensure that investments are made where they will have the optimal impact.

Embracing shift in consumer behaviour

Elektro Maribor d.d., the second largest electricity distribution company in Slovenia, is going towards smart and green future. Being able to provide as green electricity with the lowest cost and power loss in our distribution network as possible, our job is also to make our users aware of the importance of environmental care and the role of green electricity as well as to help them make informed sustainable decisions.

Climate change might be the most complex risk facing society today and customers want companies and organisations to empower them to make more sustainable choices that result in broader environmental benefit. The fact is that fossil fuels need to become a thing of the past as they do not provide a sustainable solution to our energy needs. By developing a variety of green energy solutions, we create a sustainable future for our energy provision, without damaging the world we all live in. Especially younger generations are increasingly likely to make purchase decisions based on values and principles. They are willing to pay more for sustainable products.

Using clean energy, act on climate, love nature are also just few of Good Life Goals*, set of personal actions that help everyone contribute to the UN Sustainable Development Goals, that have been shaped through a multi-stakeholder collaboration between educational institutions, governments, environmental organisations as well as UN Environment, UNESCO and WBCSD. 

* https://sdghub.com/goodlifegoals/