Carbon Offsetting

Carbon offsetting is a mechanism that allows organisations and individuals to invest in projects which mitigate climate change to counter their own unavoidable emissions. Carbon trading is where units of carbon offsets (1 tonne CO2e emissions = 1 ‘carbon offset’ or ‘carbon credit’) are traded on an open market. There are voluntary carbon offsets and mandatory carbon credits for compliance schemes in different countries throughout the world.

Carbon offsets can be generated from a range of projects that reduce emissions. Examples include energy efficiency, methane composting and flaring, biomass and renewable energy programs. These projects reduce or displace otherwise polluting alternatives which are generated from mining and combusting fossil fuels.

How your carbon footprint can be zero

Each tonne of greenhouse gas that is saved by these projects can be registered through 3rd party accreditation agencies and then sold as a carbon offset. A company can then purchase the carbon offsets from these infrastructure projects to offset their own unavoidable emissions impact. This can allow the footprint of the company to be zero or ‘carbon neutral’.

The revenue received for the sale of a carbon offset helps finance the infrastructure project and drives further investment into clean technologies. Therefore buying carbon offsets not only cancels out a company’s emissions, but it helps transform society to become more green and efficient.

While all carbon offsets represent the sequestration of one tonne of CO2-e, different projects, even with the same accreditation, can have different outcomes for the environment. Therefore it is crucial that you carefully evaluate your options before you decide how to offset your emissions.Read our CRI Guide to Carbon Offsetting to assist you before making any purchasing decisions.

Read about our carbon offset evaluation criteria. Read more about our current carbon offset project