The Intergovernmental Panel on Climate Change (IPCC) has said the world must halve human-caused carbon dioxide (CO2) emissions by 2030 and significantly reduce emissions of other greenhouse gases.
If the world succeeds, we have a 50% chance of avoiding the worst impacts of climate change. In other words, while there is no guarantee, significantly reducing emissions gives us a better chance of preventing extreme and damaging climate events in the future.
By 2050, carbon dioxide emissions must reach “net zero,” meaning the amount of emissions released must be equal to what is removed. Achieving this will require concerted action from governments, businesses, and communities around the world.
One way is through “carbon offset projects,” which, if used correctly, can accelerate action to prevent dangerous climate change.
What is a Carbon Offset Project?
Carbon offsets generally refer to reductions in greenhouse gas emissions or enhancements in carbon storage, such as through land restoration or tree planting, that are used to offset emissions elsewhere. The activities are usually packaged as “projects.”
Examples of carbon offset projects include renewable energy development, which replaces fossil fuel emissions from conventional power plants. The capture and destruction of high-potential greenhouse gases, such as methane, N2O, or HFCs. Prevented deforestation, which can lead to increased carbon dioxide emissions into the atmosphere because the carbon stored in trees is released when trees are cut down or burned.
These projects can range in scale from very small (e.g., reducing a few hundred tons of CO2e per year) to very large (e.g., reducing millions of tons per year).
Carbon offset projects often provide additional benefits beyond simply reducing greenhouse gas emissions. These additional benefits, called “co-benefits,” can include:
- Increased Employment Opportunities: Projects can create employment opportunities for local communities.
- Improved Air and Water Quality: Projects can improve air and water quality.
- Biodiversity and Habitat Conservation: The project can protect species and natural habitats.
- Improved Energy Access: The project can improve community access to energy.
- Improved Access to Health and Education: The project can improve community access to health and education.
Carbon Offset Project Implementation Stages
An important initial step is to make accurate calculations of greenhouse gas emissions from various human or corporate activities. These calculations must follow applicable standards and must not be arbitrary. The standard used is the established international greenhouse gas protocol.
After obtaining the results of the greenhouse gas emission calculations, companies or individuals can purchase carbon credits in an amount that corresponds to the calculated emission value. Purchases of carbon credits can be made on the carbon market, through emission reduction projects in the vicinity, or through organizations or companies that provide carbon offset services.
For companies or countries that successfully sell carbon, the proceeds from the sale can be used to support any emission reduction projects held elsewhere. Projects related to carbon emission reduction are usually in the form of industrial emission reductions, renewable energy projects, agricultural emission reduction projects, and projects related to reforestation.
The verification and certification stages aim to ensure that the carbon offset project is truly successful in reducing greenhouse gas emissions. In addition, this process also ensures that the project meets international standards. Verification and certification must be carried out by an independent body that specifically handles carbon offset projects.
The final stage in the carbon offsetting process is the use of carbon credits. Carbon credits are used to offset carbon emissions or greenhouse gases produced by human activities, especially industrial activities. By using carbon credits, the impact on the environment can be reduced, maintaining the environment and supporting sustainability. Carbon offset projects play an important role and require full support to significantly reduce greenhouse gas emissions so that environmental health can be maintained.
Carbon offset projects should be accompanied by experienced experts such as IML Carbon. Come on, get a free consultation now, without any charges, with IML Carbon!
References
Broekhoff, D., Gillenwater, M., Tani, C., Patrick, C. (2019). Securing Climate Benefit: A Guide to Using Carbon Offsets. Stockholm Environment Institute & Greenhouse Gas Management Institute: 1-60.
PGN LNG Indonesia. (2023). Mengenal Carbon Offset Beserta Manfaat dan Cara Kerjanya. Retrieved from https://pgnlng.co.id/berita/wawasan/apa-itu-carbon-offset/ (Accessed: August 24th, 2024).