Who Generates Carbon Offsets
Who?
Carbon offsets are generated by a variety of different projects. All of them utilize activities that contribute to the reduction or capture of carbon and other greenhouse gas (GHG) equivalents. Projects include but are not limited to efforts in forestry, agriculture, and energy efficiency. These projects counteract man-made GHG emissions, while also improving the livelihood of people around the world.
How?
Carbon offset projects reduce or capture emissions through regenerative efforts. While the specific methods used to generate offsets vary depending on the project type, there are truly only three ways to reduce emissions:
By capturing and destroying a greenhouse gas that would otherwise be emitted into the atmosphere. Exemplified by a project capturing methane gas at a landfill.
By producing energy using a clean, renewable resource that eliminates the need to create that same energy from fossil fuels (the burning of which releases greenhouse gas into the atmosphere). Exemplified by a project generating hydropower from a dam.
By capturing and storing (or “sequestering”) greenhouse gases to prevent their release into the atmosphere. Exemplified by a project that manages the land, especially farmland, so that soils absorb and hold more carbon.
They have independent organizations (registries) that monitor the amount of carbon a project saves to assign one offset for every tonne of CO2 removed. Projects sell the newly classified assets in the form of CO2 reduction certificates. The profit is recycled back to the developers and turns into funding for future projects. To be recognized as a carbon offset, a project needs the financial support of the VCM.
The Process
To ensure a project delivers genuine impact, it goes through a rigorous verification test conducted by an independent third party. This certifies that the CO2 reductions are additional, permanent, and not harmful. Additionality tests are time-consuming and expensive, but a necessary step. Ensuring additionality remains a high priority to preserve the integrity of carbon offsets and protect their product value.
Conclusion
In order to generate carbon offsets, companies or organizations must create projects that prevent greenhouse gas emissions from happening. These projects can take many forms, but all must undergo a rigorous verification process to ensure that the carbon reductions achieved are real, permanent, and verifiable. Only then can the project be certified and the carbon offsets be sold. By buying carbon offsets, you can help finance these important projects and offset your own emissions.
Last updated
