Carbon offsets

From Greenlivingpedia, a wiki on green living, building and energy

Revision as of 23:32, 20 June 2009 by Peter Campbell (Talk | contribs)
Jump to: navigation, search

Carbon offsets are a mechanisms by which carbon emissions by individuals and/or companies, or even countries, can "offset" there carbon emissions.

Carbon offsets are measured in metric tons of carbon dioxide-equivalent (CO2e) and may represent six primary categories of greenhouse gases. One carbon offset represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.

The concept revolves around buying an "offset" in the form of a certificate or credit, which is associated with activity that is linked to tangible carbon emission reductions.

Examples of offset mechanisms include:

  • Energy efficiency projects to reduce the consumption of power and fossil fuels.
  • Renewable energy projects such as windpower or solar power to produce zero emissions energy
  • The establishment of tree plantations.


Types of carbon offets

Carbon offets are part of large compliance markets such as the proposed Australian CPRS, in which companies, governments, or other entities buy carbon offsets in order to comply with caps on the total amount of carbon dioxide they are allowed to emit.

Smaller voluntary markets are also in existence. These provide individuals, companies, or governments with the opportunity to purchase carbon offsets to mitigate their own greenhouse gas emissions from transportation, electricity use, and other sources. For example, an individual might purchase carbon offsets to compensate for the greenhouse gas emissions caused by personal air travel.

Australian Government National Carbon Offset Program

The Australian government is currently in a consultation period on the regulation of Carbon Offsets.[1] The standard will provide guidance on what constitutes a genuine, additional voluntary offset credit, set requirements for the verification and retirement of such credits, and provide principles for calculating the emissions of an organisation, product or service which could be offset.

Carbon offets and the Kyoto Protocol

The Kyoto Protocol has sanctioned offsets as a way for governments and private companies to earn carbon credits which can be traded on a marketplace. The protocol established the Clean Development Mechanism (CDM), which validates and measures projects to ensure they produce authentic benefits and are genuinely "additional" activities that would not otherwise have been undertaken. Organisations that are unable to meet their emissions quota can offset their emissions by buying CDM-approved Certified Emissions Reductions.

Criticisms of carbon offsets

Emission reductions from some offsets may not be guaranteed. For example, tree plantations could be burnt in a bushfire, resulting in their carbon stores being released to the atmosphere.

International carbon offset mechanisms do not take into account all factors associated with emission reductions and can produce perverse outcomes. For example, under the Kyoto Protocol, emission reductions are associated with avoiding land clearing, but do not count the emissions associated with the destruction of native forests. This is leading to the perverse practice of destroying carbon-rich native forests and replacing them with monoculture tree plantations to provide carbon offsets.

Carbon offets can also be used by countries and individuals to avoid making tangible emission reductions associated with their economies and lifestyles respectively, and meet obligations that are imposed on them.

Many voluntary carbon offset schemes are also often not subject to stringent regulations.


  1. Australian Government National Carbon Offset Australian Government, 9 February 2009

You can help Greenlivingpedia by adding more content to this stub article. Click on the edit tab above the article title to start editing and adding content.

External links

Personal tools