carbonoffset

A carbon offset is a reduction or removal of greenhouse gases that is used to compensate for emissions released elsewhere. Offsets are measured in metric tons of carbon dioxide equivalents (tCO2e) and can be generated by projects that avoid, reduce, or remove greenhouse gases. Individuals and organizations purchase offsets to mitigate their carbon footprint or to meet regulatory or voluntary targets.

How offsets work: An entity calculates its emissions, selects projects that reduce or remove emissions beyond a business-as-usual scenario, and purchases credits equivalent to the emissions. Credits are issued by project developers or independent registries after verification and then retired by the buyer to ensure no double counting.

Project types: Common offset projects include renewable energy installations, energy efficiency improvements, methane capture from landfills or agricultural sources, reforestation and afforestation, avoided deforestation, and soil carbon sequestration. These projects aim to reduce or remove emissions either by preventing future emissions or by removing CO2 from the atmosphere.

Quality and oversight: Credible offsets are issued under established standards such as the Gold Standard, Verra’s Verified Carbon Standard (VCS), the American Carbon Registry, or Plan Vivo. Credits are tracked in registries; independent verification ensures project performance. Key concepts include additionality (the project would not occur without offset funding), permanence (long-term storage, especially for forestry), leakage (emissions shifting to other areas), baselines, monitoring, and verification.

Markets and debates: Offsets exist in compliance markets (for example, cap-and-trade programs) and voluntary markets. Proponents argue offsets mobilize finance for climate action and can deliver sustainable development co-benefits, including in hard-to-abate sectors. Critics contend offsets may allow continued emissions and rely on imperfect permanence or verification. Best practice emphasizes high-quality credits, retirement of credits, and pairing offsets with direct emission reductions.