> Carbon Offsets, what they are and how they help

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Carbon Offsets, what they are and how they help
Last updated 7:20 am, Friday 16th November 2012

What ever we do, from driving the car to even just breathing, releases various forms of carbon into the atmosphere. This looks like it might have various negatives effects on the atmosphere and associated processes. We say 'might', as the exact scientific process that makes a clear link between carbon and global warming has not been established - rather we depend upon the results of several computer models to establish a future cause and effect dependency; currently there is no proven direct linkage between the level of carbon and temperature as a causal relationship from carbon to temperature.

Now assuming carbon is actually a problem, there are two ways we can deal with this release of carbon into the atmosphere. Firstly, we can choose processes or products which produce less carbon. Secondly, we can invest in processes which consume carbon out of the atmosphere.

There is a third option, and this is where carbon offsets come in; net carbon producing products and services can be 'paired off' with carbon consuming processes to create a net zero contribution of carbon into the atmosphere.

What is a carbon offset?

A carbon offset is a financial instrument used to reduce carbon emissions. Carbon offsets are measured in metric tons of carbon dioxide-equivalent. One carbon offset in effect represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.

So by buying carbon offsets a company or individual can make themselves carbon neutral by buying as many carbon offsets equal to the units of greenhouse gas emissions they produce. Often these purchases occur in two markets: the large compliance market for governments and the like, and then the smaller business or individual can buy credits in the voluntary market. The difference between the two markets is in the name, the first is a mandatory market, they have to buy; the second market is down to individuals or businesses to decide to purchase.

The mandatory market has usually come about as a direct result of the Kyoto Protocol.



The Kyoto Protocol

The Kyoto Protocol has sanctioned offsets as a way for governments and private companies to earn carbon credits which can be traded on a marketplace. The protocol established the Clean Development Mechanism (CDM), which validates and measures projects to ensure they produce authentic benefits and are genuinely "additional" activities that would not otherwise have been undertaken. Organizations that are unable to meet their emissions quota can offset their emissions by buying CDM-approved Certified Emissions Reductions.

Features of a carbon offset

Carbon offsets are usually classified by three features: vintage, source and certification regime.

Vintage

The vintage is the year in which the carbon reduction actually takes place.

Source

The source refers to the project or technology used in the offsetting of the carbon emissions. Projects can include (but not limited to) land-use, methane, biomass, renewable energy and industrial energy efficiency. Projects may also have secondary benefits (known as co-benefits). For example, projects which reduce agricultural greenhouse gas emissions may also improve water quality by reducing fertilizer usage.

Certification Regime

The certification regime refers to the systems and procedures used to certify and register carbon offsets. Different methodologies are used for measuring and verifying emissions reductions, depending on the project type, size and location

The role of individuals and small business

Carbon offsetting has gained appeal among consumers who have become aware and concerned about the negative environmental effects of energy-intensive lifestyles and economies.

For the individual there are now many options available to 'buy into' carbon offsetting solutions.

Is carbon trading really working?

Apart from the fact that there still is no proven linkage between current carbon atmospheric concentration and future temperature, does carbon trading actually work? To me, there are a few problems:

  1. Human Co2 production is literally dwarfed by natural processes through the sessions on each hemisphere.
  2. The mechanisms used to measure human Co2 concentrations, and therefore resultant carbon trading required, are impacted by natural sources (such as grasses).
  3. Most carbon trading ultimately offsets against what was previously a natural 'sink' of Co2 - in effect it's a book keeping trick of adding an asset at zero cost and giving it a direct value.

So the end result is carbon trading and the resultant offsetting takes very little carbon 'out of' the environment anyway. This could perhaps well explain why what markets were set up to perform trading have all suffered from a declining price in carbon over time.

So, what should you really do?

First off, think about how you can reduce your direct environmental impact. We all share the same limited resource, the planet, therefore it is up to us to ensure we make best use of and preserve its resources where ever possible.

Secondly, stop focusing double down on carbon, there are so many other environmental issues getting 'swamped' by the obsession with carbon, for instance:

  • Basic environmental pollution, be that chemicals, pesticides or fertilizers;
  • Waste plastic in our environment and the seas;
  • Environmental degradation; loss of habits and animals.
  • Designing & encouraging products for reuse and repair instead of disposal.
  • Designing products for combined usage through stronger standards.
  • Education on food usage, cooking and plant growing to reduce 'food miles'.

See, there is a lot of other issues you can be focusing on now and making a direct difference NOW - please do so. If you want help, have a look at the other articles on this site.

Thirdly, share this article with your friends and open their eyes to the real problems we face.

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Carbon Offsets, what they are and how they help
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