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What is Carbon Offsetting and How it Helps in Reducing Carbon Emissions?

What is a Carbon Offset?

What are the Two Main Kinds of Carbon Offsets?

How Does Carbon Offsetting Work?

What are Some Examples of Carbon Offsetting?

What are the Quality Markers for a Successful Carbon Offsetting?

External Checks and Verification

An independent, trusted third party checks and verifies a project’s approach and methodology from start to end to ensure a well-established carbon offsetting.

For e.g., emissions avoidance projects are tried and tested. They are high-quality projects that corporations can adopt as a successful carbon offsetting method.

Single Counting

A carbon credit that has only been purchased and claimed by one organisation is called single counting. When a carbon credit is 'double-counted,' it indicates that more than one party has claimed it, meaning that the purchase is not having the intended effect.

For e.g., even if a company buys 100 carbon credits from a carbon offset project, it won't make a difference if those credits are previously sold to another bidder.

Permanence

Permanence refers to the durability of the carbon benefit from an offset project, considering the risk of reversal. Since there is less chance of the carbon benefit being reversed in projects without storage, permanence is frequently used as a criterion of quality in initiatives that entail storage.

Additionality

The term ‘additionality’ refers to a project's ability to reduce emissions or remove carbon from the atmosphere above and beyond ‘business as usual.’ It determines if the removal/reduction effort was necessary for those emissions to have a real-world effect.

Avoiding Overestimation of Impact

"One carbon credit is equivalent to one tonne of CO2" - based on this assumption, most carbon credits are awarded to projects depending on the quantity of carbon emissions prevented or removed.

To guarantee that claims of emissions avoided or carbon eliminated are genuine, a project’s carbon benefit must be accurately estimated, and continuous measurement and monitoring should ensure such estimates are true.

Can Carbon Offsetting Solve Climate Change?

FAQs about Carbon Offsetting