Carbon Offsetting Overview

'Carbon Offsetting involves calculating your emissions and then purchasing ‘credits’ from emission reduction projects that have prevented or removed the emission of an equivalent amount of carbon dioxide elsewhere.’ DEFRA

Greenhouse gases are emitted when fossil-fuelled energy is consumed. Some corporate emissions can be managed - we can use less energy, travel less and use public transport - but some emissions are practically unavoidable. The environmental impact of these emissions can be offset by reducing elsewhere - helping someone else to emit less. This is generally referred to as ‘carbon offsetting’

Due to the fact that greenhouse gases have a long life-span and tend to mix evenly in the atmosphere it doesn’t matter where gases are emitted in the world: the effect on climate change is the same. It is easier to reduce emissions from some sources than others but sometimes emissions are unavoidable. To make up for unavoidable emissions increases, equivalent emissions reductions can be made elsewhere, meaning that the overall effect is zero.

Emission reductions can be made by investment in technology projects, e.g. in renewable energy and energy efficiency. For example, a fossil fuel burning generator could be replaced with a wind turbine, or a community could be fitted with solar water heaters and insulation to reduce its energy use and therefore produce lower carbon dioxide emissions.’


Certification is devided into CERs and VERs.

Certified Emission Reductions (CERs) are good because:

1. They have to go through the UNFCCC climate change body accreditation process.
2. They are only from the developing world.
3. You can contact the UNFCCC to check that emissions have been cancelled. This give piece of mind that they haven't been resold.
4. They are only 600 projects accredited so far. Originally intended for large business who are obliged to cut their omissions - if individuals or small business buy them then big businesses have to look internally to cut their emissions.

However:

5. They are more expensive to buy
6. The accreditation process is expensive (typically $50,000) and can take three years.
7. Some of the offsets are from industrial savings. A factory or mine brings in some new equipment which is then cuts emissions. The factory can then sell the saving as a Carbon Offset.

Voluntary Emission Reductions (VERs) are good because:

1. They are accredited by other bodies such as the World Bank, FSC and external auditors.
2. They can contribute to projects everywhere such as forestry projects and micro renewable power generation.
3. They are cheaper can be bought in smaller volumes.
4. Projects which are too small to apply to the UNFCC CDM can still sell their genuine carbon offsets.

However:

6. Projects with no external accreditation could be sold as VER’s.
7. There is no single international database of the projects to check if they have been cancelled.

Essentially if you want total certainty of your carbon offsetting project go for CDM – but you will have to pay extra for it.

There are some amazing VER projects which offer better carbon reductions and community benefits than the CER. It is down to your offset provider to give you all the additional information about their projects, so you can make an informed choice. Currently there are only four Carbon offset providers in the UK which sell CER’s to consumers, none of which give you any information about the projects they buy. There are many more who sell VER’s but information is varied.

Correct Carbon offer a choice of CER and accredited VER’s to consumers and businesses.