Net zero refers to the balance between the amount of greenhouse gases (GHGs) produced and the amount removed from the atmosphere. To achieve this, many organisations have turned to carbon offsetting as part of their strategy to reduce their carbon footprint. This approach allows organisations and individuals to compensate for their carbon footprint by investing in projects that reduce or remove carbon dioxide from the atmosphere. However, while carbon offsetting offers a practical solution to complement emission reduction efforts, it has also sparked considerable debate about its effectiveness and long-term sustainability.
What is Carbon Offsetting?
In the Cambridge English Dictionary, carbon offsetting is defined as “the act of paying for things to be done, for example planting trees, that reduce the amount of carbon dioxide in the environment, as a way of trying to reduce the damage caused by activities that produce carbon dioxide.” Companies or individuals compensate for their carbon emissions by investing in projects that reduce or remove an equivalent amount of carbon dioxide (CO2) or other GHGs from the atmosphere. When emissions from one activity, like manufacturing or travel, are unavoidable, purchasing carbon offsets allows organisations to balance their environmental impact by funding emissions reductions elsewhere.
A carbon credit, typically representing one tonne of CO2 equivalent, is a tradable instrument that conveys a claim to avoided emissions or enhanced removals. These credits can be purchased to balance one's carbon footprint, contributing to climate change mitigation goals of an organisation. Carbon offset projects fall into two main categories:
- Nature-based solutions: These include reforestation, forest conservation and blue carbon projects, which protect and restore ecosystems like mangroves and wetlands.
- Non-nature-based projects: These encompass renewable energy initiatives, energy efficiency improvements and waste management schemes.
The Importance of Carbon Offsetting for Net Zero
For many organisations, achieving net zero is a multi-faceted and long-term goal that requires not only reducing emissions but also addressing residual emissions that cannot be completely eliminated. Carbon offsetting plays a critical role in managing these residual emissions, particularly in sectors like aviation, heavy industry and agriculture, where certain emissions may be difficult to abate with current technologies.
Benefits of Carbon Offsetting:
- Immediate Impact: Carbon offsetting provides an immediate mechanism to balance emissions that cannot yet be eliminated, helping businesses progress toward net zero goals without waiting for future technological advancements to reduce emissions.
- Funding Climate Projects: Offsetting schemes often support valuable environmental initiatives, such as forest conservation, reforestation and the development of renewable energy projects. These initiatives contribute to global efforts to reduce atmospheric carbon and preserve biodiversity.
- Cost-Effective Solutions: For some smaller businesses, carbon offsetting can be a more affordable alternative to implementing expensive, low-carbon technologies across their operations, especially in the early stages of their decarbonisation journey.
Challenges and Criticisms of Carbon Offsetting:
- Greenwashing Concerns: Some critics have raised valid concerns that some companies may use carbon offsetting as a way to avoid making real, tangible reductions in their emissions, leading to accusations of greenwashing. In some cases, businesses may focus on purchasing offsets while neglecting the harder task of decarbonising their own operations.
- Quality and Transparency Issues: The effectiveness of carbon offsetting depends on the quality and transparency of the projects being funded. Not all offsetting projects deliver the environmental benefits they promise. In some instances, projects are poorly managed, or the carbon savings are overestimated, leading to concerns about the credibility of certain carbon credits.
The Bottom Line
Carbon offsetting allows organisations to compensate for their greenhouse gas emissions by investing in projects that reduce or remove carbon dioxide from the atmosphere. When used responsibly and as part of a comprehensive decarbonisation strategy, it can play an important role in helping businesses achieve net zero. At Tunley Environmental, we help businesses develop holistic carbon management strategies that prioritise emission reductions and integrate high-quality offsetting plans. Book a free consultation here to learn what carbon management plans best work for your business.