What are Carbon Offsets?

Today, many people are concerned about climate change and sustainable living. These people are looking for ways to reduce their environmental impact. This can include decreasing their carbon footprint. 

Your carbon footprint is a measure of how much carbon dioxide and other greenhouse gases (GHGs) you are responsible for. This is determined by your activities. Some activities have a direct effect. Flying a plane is one example. That’s because burning fuel to fly a plane releases greenhouse gases. Other activities have a more indirect effect. Eating beef is an example. That’s because beef comes from cows that burp greenhouse gases. Also, farmers need land to grow crops to feed the cows. To get that land, forests might be cleared.

Calculating your footprint can be complicated. But there are things you can do to keep your carbon footprint down. For example, you can walk places instead of driving or getting a ride. 

But it is impossible to get rid of our carbon footprint entirely. For the part of our carbon footprint we can’t get rid of, people have created carbon offsets.

What is a Carbon Offset?

Carbon offsets are a type of credit. Companies and other organizations sell them. They use the money to support projects that reduce or remove GHGs from the atmosphere. They also support projects that prevent GHGs from getting in the atmosphere in the first place. People, companies and even governments can buy these credits. These credits are a way to compensate for, or “offset,” GHG emissions.

For example, let’s say your class was taking a trip by plane. When you purchase your plane ticket, you could also purchase a carbon offset. The money from your carbon offset could be used in a reforestation project.

The purpose of the credits is to help people and organizations balance their emissions. The goal is to become carbon neutral. For example, let’s say you started driving. Cars release GHGs. How could you become carbon neutral? Well, you could calculate your car’s CO₂ emissions. Then, you could purchase an equivalent amount of CO₂  in carbon offsets.

Did you know?

Carbon offsets are sold in metric tonnes of carbon dioxide equivalent (CO₂). For  more about carbon dioxide equivalents, see our Vehicle Emissions Primer). 

What are some different types of carbon offset projects? 

Many different types of projects are funded by carbon offset companies. Renewable energy projects often offer carbon offsets. Some examples are wind, solar, and geothermal energy projects. These methods of generating heat or electricity produce much less GHGs than fossil fuel-based methods. 

Some projects help avoid having GHGs go into the atmosphere in the first place. Landfill gas recovery projects and biogas plants capture GHGs, such as methane. These GHGs are naturally released into the atmosphere from the breakdown of waste. Once these GHGs are captured, they can be burned (combusted) to generate electricity. 

Other projects help remove GHG directly from the atmosphere. This includes tree-planting projects and other planting projects. Plants are considered carbon sinks. That’s because they take CO₂ out of the atmosphere and use it for photosynthesis.

Tree-planting projects sell offsets. Scientists calculate how much CO₂ the trees are expected to remove over the course of their lives. Then, tree-planting projects sell offsets for that amount of CO₂. Efforts to protect existing forests in danger may also count as offsets. 

What are the pros and cons of carbon offsets? 

Like anything in life, carbon offsets come with pros and cons. Carbon offsets can help fund projects that promote sustainable living. For example, they might help fund technologies that help companies generate electricity, reduce waste, and be more environmentally sustainable. But some of these new technologies may not be successful. 

Carbon offsets can help smaller projects get funding that they might not get otherwise. This can help provide jobs and improve the local environment. But not all of the money used to purchase a carbon offset goes these projects. Carbon offset companies are businesses. Like all businesses, they aim to make money.

Some projects, like tree-planting, can remove CO₂ from the atmosphere. This is really useful! However, they may not make a difference for years to come. Also, they might not be done in an environmentally responsible way. For example, planting huge plantations of the same kind of tree might be the most effective way of using trees to absorb carbon dioxide. But some people argue this would reduce biodiversity. It could also use lots of fertilizers and water.  Also, someday these trees will die and decompose. Or, they’ll be cut down and burnt as fuel. When either of these things happen, the carbon these trees store up will be released. 

One of the biggest concerns about carbon offsets is additionality. These organizations must make changes that would not have happened without carbon offset funds. But countries and businesses around the world are moving towards greener practices anyway. It can be hard to tell what difference offset funding makes.

Finally, on the one hand, the sale of carbon offsets can raise awareness about GHG emissions. On the other hand, carbon offsets offer a way for people to “spend their way out” of taking real responsibility for their emissions. In other words, people can buy a carbon offset rather than change their lifestyle. This can be particularly controversial. Very often, wealthier people and countries offset their emissions by paying for initiatives in poorer countries. In poorer countries, it’s much cheaper to get projects done. 

Did you know?

Many musicians offset the carbon emissions from their concert tours through REVERB, a non-profit organization dedicated to bringing sustainability to concert tours. Here is the current list. Do you recognize any Canadian artists, or any concerts that came to your area?  

What should you think about before buying a carbon offset? 

Are you thinking about buying carbon offsets? Do your homework before you spend your cash. Look for companies that meet certain standards. Examples include the Verified Carbon Standard (VCS) or the Gold Standard. These standards set out rules for setting up, measuring, and monitoring carbon offset projects.

Also, find out what projects the company is supporting. Check how much of your money will go directly into the projects they fund. Finally, make sure that you are funding projects that would not happen without your help anyway.

So what can you do to reduce your carbon footprint and live sustainably? Buying carbon offsets should be a line of last resort. It should not be your first resort. And it definitely should not be your only resort! There are many little things you can do every day to reduce your GHG emission responsibility. Walk to school. Plant some flowers. Eat locally. The (clean) sky's the limit!