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Introduction to Carbon Offsets

Carbon offsets neutralize your contribution to global warming. Your carbon emissions are offset by funding projects which cause an equal reduction in emissions elsewhere.


Global Warming and Greenhouse Gases

Global warming refers to the recent increase in the Earth's temperature. The effects of this climate change are already being felt around the world. Scientists predict that temperatures will rise up to 6°C further over the next century. This will cause rises in sea level, extreme weather events such as hurricanes and heat waves, and war and disease, particularly in developing countries.

It is now agreed that global warming is caused by greenhouse gases emitted by humans into the Earth's atmosphere. The biggest contributor is carbon dioxide, which is generated by burning fossil fuels such as coal, oil or gas. Every time you drive your car or fly in a plane, you are contributing directly to the Earth's change in climate. Most of the world's electricity is also generated from these fuels, despite renewable alternatives such as wind and solar power.

The ideal solution to this problem would be for everyone to stop driving, flying, and using electricity. However this is not going to happen in our lifetimes. In fact, rapid economic development in countries such as China and India, as well as ongoing growth in the rest of the world, mean that carbon emissions are still increasing year on year. The Kyoto Protocol is a first international attempt to address the issue seriously, but it has met with limited success.


Enter Carbon Offsets

Carbon offsets offer an interim solution for concerned individuals and businesses. Before buying offsets, you calculate the quantity of carbon you emit by flying, driving or using electricity. You then pay for a project that reduces carbon emissions by this same amount. Since greenhouse gases circulate freely in the atmosphere, this project can be located anywhere in the world.

Carbon Catalog lists many different types of carbon offset. Projects involving solar, wind and hydroelectric power generate energy from renewable sources instead of fossil fuels. Others reduce fuel use by increasing efficiency, switching fuels, or generating heat and electricity together. Many projects lower energy requirements via better lighting, materials, buildings or public transport.

After carbon dioxide, the second most important greenhouse gas is methane. While there is much less methane in the atmosphere, every tonne causes 20-70 times as much warming as a tonne of carbon dioxide. Many projects capture industrial or agricultural methane and burn it to generate energy.

More information on different types of carbon offset project.


Criticisms and Controversies

Questions have been raised about the validity of carbon offsets. Some argue that offsets act as an excuse to avoid changing our lifestyle. While there is some truth to this, it is also clear that awareness of climate change has not stopped people driving or flying. In the absence of government action to tax or limit these activities, carbon offsets are a good first step.

Some criticisms have been aimed at specific project types, in particular at reforestation. The theory behind reforestation is that trees absorb carbon dioxide from the atmosphere as they grow. However it is hard to predict how long trees will remain standing before they are felled or burnt. Although Carbon Catalog includes reforestation projects, their effectiveness is a subject of controversy.

There are other reasons why some carbon offsets have been criticized. Some projects lack additionality, meaning that they would have occurred even without the support of carbon offsets. Providing funds for such a project is not a valid way to neutralize your carbon emissions. In other cases, providers have sold the same offset more than once, or money has failed to reach the project as promised. Several certification standards have emerged to address these issues, and these are listed in Carbon Catalog alongside projects which apply them.

The aim of Carbon Catalog is to increase the level of trust and information in the carbon offset market. If chosen and researched carefully, carbon offsets have the potential to make an important contribution to the well-being of the planet.

More information on how to evaluate carbon offsets.


How to Buy Carbon Offsets

Carbon offsets are offered by many providers in Europe, North America and Australasia. Some are non-profit organizations while others are profit-making companies. Carbon Catalog lists 83 providers around the world, along with ratings on their transparency and project quality. It is important to choose a provider whose ethos and management you are comfortable with.

Each provider supports one or more carbon reduction projects, as linked from their listing in Carbon Catalog. Offsets are priced per metric tonne of carbon dioxide. The price can vary a great deal between providers, due to differences in project cost and administrative overheads.

For individual purchasers of carbon offsets, most provider websites include a carbon calculator which estimates the carbon dioxide emitted by flights, car journeys or other energy use. The website then allows the offsets to be purchased online using a credit card or PayPal. Providers allocate the money between their supported projects to offset the total amount of carbon purchased.

For businesses or other organizations purchasing offsets, more flexible options are available. Most providers invite larger purchasers of carbon offsets to get in touch and discuss their specific requirements. They are offered a lower price per tonne than retail customers, and can often choose which specific project their funds will be used to support.


Further Information

Other sections in this guide to carbon offsetting:

If you have any questions or comments, please don't hesitate to get in touch.


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