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Carbon offsetting is a way to offset your emissions by saving an equivalent amount of carbon dioxide elsewhere. Our daily actions at home and at work consume energy and produce carbon emissions, such as driving, flying and heating buildings. Carbon offsetting is used to offset these emissions by helping to pay for emissions savings in other parts of the world.
Step 1 – Calculate your emissions
By calculating the carbon emissions of your business, you can start working on your appropriate project for offset-neutralization.
Step 2 – Carbon Offset Project Design
The most appropriate project format for offsetting the emissions of your business will be determined and prepared for presentation in accordance with international standards.
Step 3 – Creating a Carbon Certificate
You can maximize the benefits for your business by creating your carbon certificate with your project.
Carbon offset and credit programs provide a mechanism for countries to fulfill their Nationally Determined Contributions (NDC) commitments to meet the goals of the Paris Agreement. Article 6 of the Paris Agreement includes three mechanisms for “voluntary cooperation” between countries towards climate goals, including through carbon markets. Article 6.2 enabled countries to trade carbon credits and renewable energy units directly with each other. Article 6.4 created a new international carbon market, allowing countries or companies to use carbon credits generated in other countries to help meet their climate goals.
Various projects can be used to reduce greenhouse gas emissions and thus generate carbon offsets and credits. These can include land use improvement, methane capture, biomass sequestration, renewable energy or industrial energy efficiency. They also include methane reduction, reforestation and switching to carbon neutral and carbon negative fuels, for example. The CDM identifies more than 200 project types eligible for generating carbon offsets and credits. An example of improving land use is better forest management.
By 2022, 68 carbon pricing programs were in place or planned to be established globally. International programs include the Clean Development Mechanism, Article 6 of the Paris Agreement and CORSIA. National programs include ETS systems such as the European Union Emissions Trading System (EU-ETS) and the California Cap and Trade Program. Eligible credits in these programs may include credits from international or independent credit systems. There are also standards and crediting mechanisms administered by independent non-governmental organizations such as Verra and Gold Standard.
