What is Carbon Offsetting?
Carbon Offsetting is the practice of reducing emissions through a carbon-saving project in order to balance out emissions from a given source. For example, through calculating the carbon dioxide emissions of car journey or an office, it is possible to ‘offset’ them by investing in a project that saves an equivalent amount of carbon such that the impact of the organisation is ‘net zero’.
There are many important things that need to be taken into consideration to create an effective and high quality carbon offset project, here are the key points:
Additionality
The key to an effective carbon offset project is additionality – this means that it can be clearly demonstrated that the project would not have happened but for the carbon finance. For example, for the African Energy Efficient Stove Project families are provided with the cooking stoves free of charge. Due to the poverty in these regions these families are unable to pay for these stoves, thereby ensuring additionality.
Location of the project
As well as the financing of the project, the location is critical in making sure that the carbon offset project is fully additional. Through developing project in places such as Africa you can ensure that the project would not have happened but for the carbon finance, the same can not be said for countries such America and in Europe, as they have the financial ability to fund such projects.
What’s more many “developed” nations have signed up to the Kyoto Agreement, and so carbon reduction activity in these countries are taken by the state to meet its requirements under Kyoto – therefore projects in these areas risk “double counting” of the carbon credits.
Social and community benefits
This is a very important part of co2balance’s carbon offset projects. We primarily develop small scale projects that benefit the lives of local families in Africa. This is essential for a high quality carbon offset project. Read more about the social and community benefits of our projects here.
Standards
There are a range of carbon offset standards, some of which should be viewed with caution. The Gold Standard is widely recognised as the most respected standard for voluntary carbon offset projects, primarily because of the social and community benefits that you have to demonstrate. As such, co2balance puts its African Energy Efficient Stove Project through this standard.
