Carbon Offset with GESIA

What is a carbon offset?

A carbon offset is a credit that a person or organization can buy to decrease its carbon footprint. Revenue generated from the purchase of carbon offsets is often — but not always — invested in environmentally friendly projects.

What are carbon footprints?

A carbon footprint is the total amount of carbon dioxide and other GHGs the activities of a person or organization generates.

Producing a T-shirt creates indirect emissions at various points in the supply chain. These include growing the cotton and shipping raw materials and the final product, as well as later decomposition of the material in a landfill.

The Environmental Protection Agency (EPA) and other websites provide free carbon footprint calculators.

How does carbon offsetting work?

Organizations and individuals pursue carbon offsetting voluntarily or to comply with regulations.

An individual or company can pay a broker to remove a portion of carbon. The customer calculates their emissions level, from which a fee is assessed based on that level. Then, a portion will be invested in a project that reduces carbon emissions.

Carbon credits cost $3-$5 per ton of carbon emissions today. The price is expected to rise dramatically in the next decade.

Steps to offset carbon emissions

An organization can take the following three steps to offset its carbon emissions:

1. Calculate and measure emissions. There are specific protocols to help companies do this. For instance, the GHG Protocol is an internationally recognized. It divides emissions into three areas:

o Direct emissions from sources an organization owns

o Indirect emissions from electricity, steam, heating and cooling resources

o Indirect emissions arising from value-chain

2. Reduce emissions where possible. The emissions and sources are identified, a sustainability strategy can be developed. The Science Based Target initiative (SBTi) advises companies to use 80% renewable electricity by 2025. Carbon reductions can also be achieved in smaller ways through individual action.

3. Offset remaining emissions. Some examples of international certifications include:

o Climate Action Reserve

o Gold Standard

o Plan Vivo

 

Reducing carbon emissions through any possible ways before offsetting is the ultimate goal. Once certified, third-party monitoring organizations verify that a project meets:

o Net-positive emission removal

o Leakage-free Creating carbon credits must not result in emissions elsewhere

o Permanent non-reversable carbon emissions

Once purchased, organizations should be transparent about their offsetting strategy in order to avoid greenwashing accusations.

Examples of carbon offsetting

· Forestry. Tree planting projects restore areas facing deforestation. Trees absorb and hold carbon.

· Agriculture. Farmers grow crops using technology and techniques to maximize resources and reduce waste

· Aviation. Airline operators optimize flight paths with AI

· Renewable energy. replace fossil fuel use

· Water management. Projects get clean water to areas with polluted or otherwise contaminated water

· Waste management. Projects capture the methane generated in landfills from waste disposal.

· Carbon sequestration. Carbon capture and storage to put it in places where it’s unlikely to be released

· Energy efficiency. For instance, upgrading building insulation