What is carbon offsetting?

Carbon offsetting is not removing the problem, it is just moving the problem

Carbon offsetting aims to reduce emissions of carbon dioxide or other greenhouse gases from the atmosphere, to compensate for emissions made elsewhere. Offsetting is usually completed through sustainability projects, such as tree planting initiatives or renewable energy projects.

Offsets are measured in tonnes of carbon dioxide equivalent (CO2e), and one tonne of carbon offset represents the reduction of one tonne of carbon dioxide or its equivalent in other greenhouse gases from our atmosphere.

There are two types of markets for carbon offsets, compliance and voluntary.

The compliance market, which includes the European Union Emission Trading Scheme companies, governments, and other entities, purchase carbon offsets in order to comply with mandatory and legally binding restrictions on the total CO2 emissions they are allowed to emit every year. Failing to comply within compliance markets results in fines or legal consequences.

The voluntary market includes individuals, companies, organizations, and sub-national governments, who generate demand for carbon offset credits, and purchase to mitigate their greenhouse gas emissions and meet carbon reduction goals, such as net zero. The voluntary offsetting market is facilitated by certification schemes, for example the Verified Carbon Standard, which provide standards, guidance, and establish requirements for sustainability projects to follow to generate offsetting credits. Carbon offsetting is big business in the voluntary market as vendors offer direct purchase of carbon offsets, often also offering other services such as designating a carbon offset project to support or measure a purchaser’s carbon footprint.

Offsets will likely be a cheaper or a more convenient alternative to reducing one’s own fossil-fuel consumption. Whilst offsetting, if done well, can have a positive impact on climate, biodiversity and human rights, some critics however object to carbon offsets, and question the benefits of certain types of offsets.

 

The problem with offsetting

Ultimately, carbon offsetting is not removing the problem, it is simply moving the problem elsewhere.

Objectors suggest offsetting is simply a way of paying for others to reduce their emissions or absorb CO2 to compensate for one’s own emissions. Planting trees to extract carbon from the atmosphere as they grow certainly contributes to atmospheric carbon reduction, but a more urgent response to the climate crisis is needed. Carbon emissions are still worryingly high, so offsetting alone is not enough to halt the climate emergency, real carbon reduction needs to be implemented, globally.

Offsetting schemes, such as protecting forests and restoring natural ecosystems are both vital for biodiversity and the climate, but should be occurring anyway, not just as a response to the climate crisis.

Whilst offsets in themselves are not bad, tree planting or renewable energy and efficiency for poor communities are good, however they don’t cancel out or offset the emissions of those who have purchased them. Further to this, the positive intentions of offsetting schemes are now unfortunately often viewed by many as a PR tool, providing a good story and allowing companies to avoid implementing meaningful and possibly costly action on their carbon emissions.

 

If not carbon offset, then what?

As offsetting alone has failed to reduce CO2e and global warming potential is forecast to worsen, the need for businesses and consumers alike to directly cut carbon emissions will change the way we all operate, and that is a given. Emissions need to be prevented from getting into the atmosphere in the first place, meaning clearly identifying, reducing, or removing carbon emissions at their source.

Wherever there are commercial costs (machines, materials, and people) in business and at home, there are likely to be carbon dioxide equivalence emissions from lighting, heating, cooking, motors, etc. The challenge is to identify it, measure it then find ways to reduce or better remove it.

The UK Government has published their Industrial De-Carbonisation Strategy 2021, in which they specify the need to be granular when seeking the data, be accurate in terms of how CO2e is calculated, be transparent with the results and actions taken to enable informed decisions in business and by consumers.

Therefore carbon offsets should be used as a last resort, where no alternative for the product or service demanded by society can be found without emitting carbon.

 

 

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