Carbon offsets are rapidly increasing in importance. The carbon emissions of the world are growing rapidly and offsets your carbon emissions is an effective method to aid in fighting global warming and climate change.
Carbon offset benefits do not only include carbon emission reduction, but based on the offset type they could bring a variety of benefits to the entire environmental. In addition to local ecological, social, and ecological benefits.
What is an Carbon Offset?
A carbon offset permits businesses and individuals to cut down on carbon emissions by buying carbon credits for projects to reduce carbon emissions. The projects could be as follows:
Reforestation, e.g. planting new trees
Reduced the need for deforestation. REDD (Reducing emissions caused by Deforestation as well as Forest Degradation)
Sustainable and improved management of forests and the REDD+
Renewables, like wind turbines and solar PV
Retention of gas from landfills, or methane
Clean cookstove projects
Access to clean water
Each carbon credit is equal to one carbon reduction equal to tonne of CO2.
The Offsetting Process
The process of offsetting carbon emissions your emissions is to obtain carbon credits, then reserving the credits for the organization. To be able to claim carbon credits to legitimate, it must be:
In addition, you must ensure that the reduction in carbon emissions is permanent and real
Verified – assuring the credibility and quality of the credit
Traceable – transparent and providing proof of offset
To meet the requirements of these standards to meet these criteria, carbon offsets are that are available through diverse verification schemes, which include:
Verified Carbon Standard (VCS)
UN Clean Development Mechanism
How to offset your emissions
The process of offset carbon emissions begins by knowing how much carbon you want to offset, and the rationale behind offset.
If your objective is to help society, you might decide to establish an offset budget, then match it to a certain amount of carbon dioxide equivalent to tonnes and the carbon credits will be purchased and then retired. This will give you the evidence that you require if you want to prove the amount of carbon your company offsets, or how many trees were put in place, something you might decide to include to fill out your year-end CSR report.
But, this method does not permit the claim of carbon neutrality or the concept of net zero carbon. It requires the highest level of confidence.
Carbon Neutrality , Net Zero Carbon
If you intend to promote claims of carbon neutrality and net zero Carbon projects The process needs to begin with a comprehensive analysis. Carbon footprint assessments should be conducted in accordance with recognized footprint standards. The most reputable carbon measurement standards include:
World Resources Institute GHG Protocol for Products
UKGBC Net Zero Carbon Framework Definition
We can provide advice on the appropriate carbon measurement standards and also conduct evaluations. The compliance with these standards ensures the required level of accuracy for carbon calculations. The assessment could also be backed by assurances from an external or independent review.
After the amount of carbon is established, at the level of assurance that is appropriate the carbon credits can be purchased and then retired on your behalf. The process of retiring a carbon credit guarantees that nobody else is able to purchase the credit.
What are the financial and Societal advantages of offsets?
The Gold Standard, one of the major carbon verification and registry schemes has conducted research on the larger advantages that carbon credits can bring. Their research shows that there are other economic benefits to carbon credits and they can contribute to a variety of UN sustainable Development Goals (SDGs) that have benefits on wellbeing, biodiversity, and also employment.
Their study suggests that a reduction in carbon emissions by 1 tonne CO2 through using the Gold Standard, has a greater financial benefit that includes:
Biogas = $465
Filters for water cost $118.
Cookstoves = $267
Wind = $11
Afforestation / Reforestation = $177 benefit
The values listed are well above the price of one carbon credit.
How Much Will carbon offset credits cost?
The cost of offsets can vary dramatically in the markets of one of supply and demand. As such, prices is subject to alter at any moment. As an approximate guideline carbon credits can be purchased from offset schemes with a verified source starting at under PS5 ($/EUR) 1 tonne CO2. Projects within that range are typically renewable energy projects located in Asia and are most likely older in their vintages. It is not advised to only use offset credits that are generated from renewable energy sources. Different offset projects provide more value and provide greater benefits.
There’s a lot more options in the PS8-15 range ((USD / EUR) 1 tonnes CO2. Within this price range , it is possible to choose the countries or regions where offsets occur in, and also projects of different types, like renewable energy, forestry, cookstoves…etc. Credits at the higher end tend to have PS15-25 TCO2e or higher.
Most expensive offsets are usually ones based on forests which are popular and offer a variety of other advantages.
Did you know? You can trade carbon credits with carbon.credit…
How Much Carbon Do I need to offset?
It is best to establish this through an assessment of carbon. To provide rough guidelines, we will consider the carbon emissions from different activities:
Average emissions for a territorial area from one person in the UK is 6.5 tonnes of CO2
1 person in the USA is 16.5 tonnes of CO2
1 person living in the EU is 6.4 tonnes of CO2
Flight return departing from New York to London, economy = 1.7 tonnes CO2
Business class on the same flight = 5 tonnes of CO2
Building construction carbon embodied per m2 Gross Interior Area (GIA) is 0.5 or 1.0 tonnes CO2e/m2 GOA
A 1,000-m2 building equals 500 to 1,000 tonnes of CO2
The construction of a 10,000m2 building equals 5,000 to 10,000 tonnes of CO2
Office space energy consumption for 100 employees equals 50-100 tonnes CO2
These numbers are intended to be used as an approximate reference only.