What is Carbon Offsetting

What Are Carbon Credits and How Are They Used for Offsetting?

Let’s start with the basics: what exactly are carbon credits? Think of carbon credits as permits that allow an entity to emit a certain amount of carbon dioxide (CO2) or other greenhouse gases (GHGs). Each credit typically represents one tonne of CO2.

In the voluntary carbon market, individuals and companies can buy these credits to offset their own emissions. For instance, if you take a flight that emits a certain amount of CO2, you can purchase credits from a project that reduces or removes the same amount of CO2. This way, you’re balancing out your carbon footprint.

These credits come from a variety of projects that either prevent emissions (like renewable energy installations) or actively remove carbon from the atmosphere (like reforestation or carbon capture technologies). The idea is that by supporting these projects, you're compensating for the emissions you can’t reduce in your daily life.

What Are the Differences Between Carbon Removal and Carbon Reduction Credits?

Now, not all carbon credits are created equal. There are two main types: carbon removal credits and carbon reduction credits. Let’s break it down.

Carbon Removal Credits: These credits are awarded for projects that actually remove CO2 from the atmosphere. Imagine planting a forest or using technology to suck CO2 directly out of the air. These methods physically take carbon out of circulation, storing it in trees or underground. Carbon removal technologies are the focus of CarbonWise, and you can learn more about them on our website.

Carbon Reduction Credits: These credits come from projects that reduce the amount of CO2 being emitted in the first place. Think of it as preventing a problem before it starts. Examples include improving energy efficiency in buildings or switching from coal to solar power. Carbon reduction credits can be harder to measure, often making these types of projects more controversial as you have to prove a project is providing additionality.

To help visualise this, imagine a bathtub filled with water (representing CO2 in the atmosphere). Carbon removal is like scooping water out with a bucket, while carbon reduction is like turning down the tap to slow the flow of water.

Criticisms of Carbon Offsetting

While carbon offsetting sounds great, it’s not without its critics. Some people argue that it can be a way for companies to avoid making real changes to reduce their own emissions. They might just buy credits and continue polluting as usual, which doesn’t solve the root problem.

There’s also the issue of the quality of some offset projects. Not all projects are created equal, and some might not deliver the promised benefits. For example, a tree-planting project might sound good, but if the trees die or are cut down, the carbon isn’t really offset.

Lastly, there’s a worry that carbon offsetting can create a false sense of security. People might think, “I bought some offsets, so I’m doing my part,” and not make other important changes to reduce their carbon footprint. The tools provided by CarbonWise offer a mechanism for buying carbon credits, but individuals need to do their own due diligence to ensure they agree with how an organisation is approaching their project.

How Do I Know if a Carbon Offset Has Integrity?

When it comes to carbon offsets, not all are created equal. Here's how you can ensure the offsets you buy have integrity and actually make a difference:

• Verified by Reputable Standards: Look for offsets that are certified by well-known standards such as Gold Standard, Verified Carbon Standard (VCS), or Climate Action Reserve. These organisations have rigorous criteria to ensure the projects they certify are genuinely reducing or removing CO2.

• Transparency and Reporting: Reliable offset projects provide clear, accessible information about their methods, impacts, and verification processes. Look for projects that publish detailed reports and have third-party audits.

• Additionality: Ensure the project wouldn't have happened without the funding from carbon credits. If the project would go ahead anyway, it doesn’t add any real benefit. Verified standards usually assess this, so their certification can be a good indicator.

• Permanence: Consider how long the CO2 will be stored. Projects should have strategies to ensure that the carbon remains sequestered long-term. For example, forest projects should have plans for fire prevention and pest management.

• Avoiding Leakage: Leakage occurs when a project reduces emissions in one area but causes an increase in another. Good projects take steps to minimise this risk and provide evidence that they aren’t just shifting emissions elsewhere.

• Co-benefits: High-quality offsets often provide additional benefits, such as supporting local communities, protecting biodiversity, or improving air and water quality. These co-benefits can enhance the overall value of the project.

The Integrity Council for the Voluntary Carbon Market offers a robust framework for what makes a carbon project more trustworthy.

How Individuals Can Get Involved

You might be wondering, “Can I, as an individual, get involved in carbon offsetting?” Absolutely! Here are a few ways to start:

• Calculate Your Carbon Footprint: Many websites offer tools to calculate your personal carbon footprint. This is a great first step to understand where you can make changes.

• Buy Carbon Offsets: Once you know your footprint, you can buy carbon offsets from reputable projects. Look for projects that are verified by organisations like Gold Standard or Verified Carbon Standard (VCS).

• Reduce Your Emissions: While offsets are great, reducing your own emissions is even better. Simple actions like using public transport, eating less meat, and conserving energy at home can make a big difference.

• Support Sustainable Projects: Invest in or donate to projects that aim to reduce or remove carbon emissions. This can include supporting renewable energy projects, reforestation efforts, or even innovative technologies that capture CO2.

By understanding and participating in carbon offsetting, you’re contributing to the global effort to combat climate change. Every action counts, and together, we can make a difference. So go ahead, take that first step, and let’s help our planet breathe a little easier!