Global warming is a topic that has elicited heated and endless debates. It is one of the biggest threat facing humans today. Some thought the global warming phenomenon was a hoax invented by some politicians to stop further extraction and utilization to make use of fossil fuels. But the consequences have become apparent today and include changes in weather patterns that lead to massive crop failures, occurrence of more killer storms and rising sea level that threaten to submerge many islands and force the displacement of millions of people, widespread destruction of both animal and plant species and the demise of coral reefs. The major contributor to global warming is the burning of fossil fuels, which release huge quantities of greenhouse gasses. Examples of greenhouse gases are Carbon dioxide, methane, fluorinated and nitrous oxide gasses such as perfluorocarbons, nitrogen trifluoride, sulfur hexafluoride as well as hydrofluorocarbons.
To ensure that life can continue to thrive on planet earth to sustain, the proper amount of carbon dioxide needs to be maintained in the air. This is accomplished by neutralizing carbon dioxide released into the atmosphere by human activities, such as burning fossil fuels, driving automobiles as well as using home appliances and heating and cooling homes. Yet, regardless of the level of commitment we make, it’s impossible to completely eliminate emissions that contribute to your carbon footprint. This is where carbon offsets come in.
Carbon offsets are programs that aim to reduce or eliminate our unavoidable footprint . We can trade carbon credits offered by carbon credits trading exchange businesses. In simple terms, carbon offsets are greenhouse gas cutbacks accumulated by an individual or organization that are able to be bought and used to offset(compensate) the carbon emissions created by another person or entity. Carbon offsets are typically expressed by tons in CO2-equivalents often abbreviated as CO2e. A single carbon offset is comparable to an increase by one metric metric tonne of carbon dioxide. They are sold and purchased via conventional platforms as well as international broker, and online retailers.
The carbon offset is nothing but investing in projects that help reduce the emission of CO2 or greenhouse gases. This helps to lower their carbon footprint, in order to safeguard the planet from catastrophic climate changes. Carbon offset is a form protection against damage. To offset the carbon pollution that is deadly, people or companies purchase carbon offsets, which means that carbon dioxide and other greenhouse gases that cause harm are reduced and controlled elsewhere. You can calculate your carbon footprint here.
Carbon Offsetting projects are aimed at reducing the CO2 or the greenhouse gas (GHG) emitted in the atmosphere. The outcomes of these projects could be immediate or over the longer term, based on the type of project. Let’s take unconventional energy sources, or even renewable sources. If we consider the investments in wind farms and hydro-power facilities that are installed in dams these are nothing more than investment to reduce carbon emissions by carbon offset. Examples of carbon offset could include afforestation, solar energy models, and disposal of industrial and agricultural by products etc.
In a layman’s language, carbon offsets are aimed at the reduction of greenhouse gas emissions in order to compensate excess greenhouse gas emissions produced by someone other. Carbon offsets are a part of two main ways: the compliance or cap-and-trade market and voluntary market.
In the compliance market where a government agency imposes an upper limit on greenhouse gas emissions for specific organizations. They are required by law to adhere to the limit on greenhouse gases. They accomplish this by reducing emissions from their own operations. They can make these reductions in emissions by adding equipment to their facilities to increase efficiency, while minimizing emissions, or by replacing their older vehicles with modern cars that are cleaner to burn. If an entity is able to reduce its emissions to a lower level required by law, it is permitted to offer credits for the additional cutbacks to other businesses that have problems reducing their emissions in order for them to comply with the emission standards of minimum.
The market that is voluntary, on the other hand allows any individual or organization balance their carbon emissions by allowing them to fund projects that help lead campaigns to reducing greenhouse gases. Carbon offset projects may confine and store these gases, preventing any emissions into the atmosphere. Carbon offset projects might involve planting and maintaining forests or investing into renewable energy resources such as solar wind and geothermal. This will reduce the need to create power using fossil fuels that could contribute to the emission of carbon dioxide. A carbon offset program could include the destruction of greenhouse gases already in the atmosphere by taking methane gas, and neutralizing it in landfills.
Pros and cons of carbon offset
The government alone is not able to fully deal the climate change problem. The only surefire way is to cooperate with the private sector, business owners and investors by implementing carbon offsetting schemes. With that in mind take a look at the advantages of carbon offsets in more detail:
It makes a clear declaration of intent
Carbon offsetting gives a solid claim and is credible in efforts to minimize emission of greenhouse gases. It’s practical since it goes far beyond the typical talk and target setting that are part of policy-making. It is evident from the amount of businesses and people who are flocking to this particular demographic to create a cleaner and safe world.
Old businesses are relevant today
A majority of governments are taking actions to regulate businesses and businesses which contribute significantly to the emissions of greenhouse gasses. Carbon offset can save the majority of old businesses from closure. How? Carbon offset programs require that companies which emit more greenhouse gasses than the limit set for minimum emissions modify or add additional equipment or adjust their processes to attain greater efficiency while at simultaneously reducing emissions. This can greatly assist in lower greenhouse gas emissions now and in the coming years.
Helps to accelerate the expansion of renewable energy technologies
With respect to how carbon offset is achieved it is possible for the voluntary market to allow people or organizations to offset their carbon footprint by supplying projects that are aimed at reducing emissions of greenhouse gases. These projects include installation of wind turbines, solar panels as well as the installation of geothermal power facilities and systems. This funding will help drive forward the speed of the development of renewable energy.
Determines the exact damage caused by greenhouse gas emissions.
The cost of carbon offsets is a way to determine the true price of the damage caused to the environment by greenhouse gases. Institutions, including governments, can use this data to formulate exact budgets regarding carbon neutrality.
Helps identify hot areas in the supply chain.
Carbon offsetting requirements will push companies to invest heavily on inspection programs in order to spot hot spots (areas that mightily contribute to greenhouse gas emissions), allowing the maintenance and sealing off of these hot spots. This saves the business lots of money to purchase carbon credits, if it emits more greenhouse gases than the minimum amount allowed legally required.
Allows business owners to find out more about their company
Carbon offsetting permits the owner to understand about the carbon footprint of the company. It is determined by measuring the actual numbers and steps are taken to minimize them before any offsetting is started. The owner also gets the opportunity to engage with offset project managers and get to know the ins and outs of carbon emission reduction and emissions.
Helps business owners spend their money wisely
As you engage in carbon offsetting it will present problems with how you allocate your budget. Carbon offsetting will help you decide if it’s worth investing your money on paying for carbon offsets or even putting it into your company to lower carbon emissions in the internal. The bottom-line is: All of them are interconnected, and it’s practically impossible to decrease your carbon emissions entirely.
The negatives of carbon offset
The investment in greener and less carbon-intensive processes can be overlooked
Carbon credits purchased through carbon trading could be used as a way of avoiding the need to minimize emissions by simply purchasing credits with zero investment in renewable, clean energy.
It’s a sophisticated plan
Carbon offsetting is a complicated process. It is first necessary to get individuals and entities on board and get them to sign a pledge to reducing carbon emissions. There are also the logistics involved in buying carbon credits. This might require the involvement of third parties. Payment systems can be a bit complicated. In addition, the fact that they are invisible commodities, the chance of being gamed is high.
Fewer beneficiaries
The primary winners of carbon offset programs are the traders as well as NGOs and lawyers. The project developers do not benefit significantly, but they are the main brains behind the scheme.
Complex red tape
Project developers have to navigate the complicated legal process to get the required permits. This could take a long time. This is why only large projects stand the chance of funding development costs.
All the carbon offset projects must be:
Real: These offset carbon projects are not meant to displace emissions elsewhere.
Permanent: They should aim at cutting or eliminating emissions forever
Verifiable: The emission reductions that are reduced by these projects should be verifiable by a third party in order to confirm that emissions have actually been decreased.
There are two levels on which carbon offset is carried out. Let’s start by understanding the market for large-scale compliance. In the large-scale compliance market, the buyers are national governments, corporate companies, non-governmental organizations and international organizations. They make investments in carbon offsets in the course of social responsibility and to track the amount that is permissible of greenhouse gas emissions. The necessity to invest in the same is to follow the numerous guidelines that they are expected to adhere to as part of Kyoto Protocol Annex 1. Kyoto Protocol Annex 1 parties. It is common to see a corporate entity invest either in energy-efficiency or wind turbines program as their choice for an offset for carbon.
As per the Carbon offsets daily’s analysis in their piece from 2008 titled “Brands and carbon offsets’ In this smaller market also called”the market for voluntary transactions,” roughly $705 million worth of carbon offsets sold. When calculated this amounts to approximately 123.4 million metric tons reduced carbon. This amount of carbon offsetting is at a lower amount compared to the previous. However , it is an integral component. Herein individuals or companies etc utilize carbon offsets to battle the greenhouse gas issue on a individual and intimate level. They try to control and curb the emissions from greenhouse gases that are released using transport modes electric power, burning fossil fuels in a home among other smaller chores.
The scale for measuring carbon offsets is metric tons of carbon dioxide-equivalents , abbreviated CO2e. They include the most significant greenhouse gases like. carbon dioxide (CO2), methane (CH4) as well as nitrous oxide (N2O) perfluorocarbons (PFCs), hydrofluorocarbons (HFCs) as well as sulfur hexafluoride(SF6). So when we say one carbon offset, we are talking about the diminution of 1 metric tonne of either carbon dioxide or any of the other green house gases within the same way.
Let us take a look at different Carbon offset schemes.
Renewable energy offsets generally include hydro, wind, and solar energy projects. Bio fuel can also be classified as renewable energy.
Methane combustion and collection is the next kind of carbon offset project. This involves the collection and combustion of methane generated by anaerobic source industrial waste, industrial waste, and methane produced by landfills.
Land use and forestry attempt to build natural carbon sinks for forests by using soil. The sub projects within this regard are reforestation. This is restoring a forest where it was once present, and afforestation, which is the process of creating a new forest space and no deforestation.
Carbon offset in energy efficiency projects include co generation facilities. Co generation plants create electricity and heat from one power source. This boosts the energy efficiency of many power plants which, in other cases, use the heat energy generated.
Under Fuel efficiency projects combustion devices are replaced with one that uses less fuel per unit of energy supplied. This is believing that the energy requirement does not alter.
Energy-efficient buildings help control the energy wasted in buildings. They use high-efficiency heating and cooling, or lighting systems. A great example of the same is the replacement of light bulbs in fluorescent lighting. This can reduce energy usage to a large extent.
There are several controversies related to carbon offsets, but it is viewed as a worthy eradication to the damage that has been done.
