By: Emma Abrams
The carbon market is rapidly growing as more and more businesses and governments commit to achieving net zero emissions by 2050, a target needed to limit warming to below 2°C. Your business may be looking to offset their greenhouse gas (GHG) emissions, and you may have been asked to offset your emissions the last time you booked a flight. But what is a carbon offset, and which ones can you trust?
What is a carbon offset?
The Greenhouse Gas Protocol Corporate Standard defines a carbon offset as “discrete GHG reductions used to compensate for (i.e., offset) GHG emissions elsewhere, for example to meet a voluntary or mandatory GHG target or cap”. These are typically sold in tonnes of carbon dioxide or carbon dioxide equivalent.
There are two broad categories of offsets: reductions and removals. Emission reductions include avoiding emissions, storing carbon, destruction of greenhouse gasses before they enter the atmosphere, and protection of natural ecosystems. Examples include using renewable energy instead of fossil fuels, preserving forests and Carbon Capture and Storage. Carbon removals pull down and remove carbon dioxide from the atmosphere. This can be achieved through new technologies, like bioenergy with carbon capture and storage, or through biological carbon sequestration.
Companies who want to offset their emissions should report their inventory of emissions for their chosen boundaries separate from any GHG trades they participate in. The Oxford Principles for Net Zero Aligned Carbon Offsetting recommend that companies with net-zero targets prioritize reducing their own emissions, which will minimize the amount of offsets needed. Additionally, companies should increasingly choose carbon removals over emission reductions.
What makes a carbon offset credible?
Following the GHG Protocol Project Quantification Standard, projects must address the following criteria:
- Selection of a Baseline Scenario and Emissions: The baseline emissions are the hypothetical emissions produced in the absence of the project. The project’s reductions are the difference between baseline and actual project emissions.
- Demonstration of Additionality: An offset must demonstrate that the project has resulted in emissions reduction/removal that would not have occurred without the project.
- Identify and Quantify relevant secondary effects: These are unintended GHG emissions that should be included in calculating the project’s reduction.
- Consideration of Reversibility: There is a risk that carbon or other GHGs may be returned to the atmosphere from carbon sinks, like through forest fires that destroy carbon-holding trees. This risk should be assessed, and appropriate mitigation measures incorporated into the project.
- Avoid Double Counting: The ownership of the offset should be clear in order to avoid attributing the emission reduction to more than one company/individual.
Thankfully for consumers, there is an international certification standard for offsets, which makes choosing an offset much simpler. The International Carbon Reduction and Offsetting Accreditation (ICROA) is an accreditation programme that is committed to ensuring the integrity of the carbon market. The Carbon Crediting Principles of the ICROA require that standards evaluate for offsets that are unique, real, permanent, additional and measurable. ICROA endorse independent and government standards that align with their criteria. Some examples include Gold Standard, American Carbon Registry and Climate Action Reserve. These standards can then evaluate and approve individual projects that adhere to their own set of criteria. If buying offsets credited/verified by these standards, you can trust that these offsets are credible and will have a real impact on the environment.
If your business is interested in measuring and reducing your carbon footprint and taking steps towards carbon neutrality, you can learn more about our Sustainability Consulting Services on our website or contact us today!
Emma is a sophomore at the University of Delaware, where she is majoring in Environmental and Natural Resource Economics. She spent her first semester studying in Auckland, New Zealand. While an avid world traveler, the lowcountry will always be home; She grew up swimming and tossing cast nets in the creeks around Charleston and Edisto, and her love for this environment drives her passion for sustainability. Emma has long been involved in environmental activism, and now hopes to make a career in protecting the ecosystems and communities she cares about. With experience in advocacy, research, data analysis and a healthy dose of optimism, she hopes to bring a fresh perspective and new solutions to the environmental field. Emma is excited to be working with Emerger Strategies to help Charleston create a greener future.