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Offsetting - External

Buying into offset projects

1. Offical Offsets - Commitment to offset 740mill tonnes of GHGs is sanctioned under the Kyoto Protocol. This allows governments and companies to earn carbon credits that can be traded. Such projects, usually under the Clean Development Mechanism are controlled by tight rules and a complex bureacracy to control fraud.

2. Unofficial sector - Charitable and profit making bodies (about 30 worldwide) that charge you - or your organisations, to organise offsets on your behalf. Many companies choose this route, although they cannot confer credits or abide by Protocol rules. So far, committed to offset 20-50 mill tonnes.

To mitigate emissions by buying into an offset project must be additional to on-going business. For example - buying into a methane capturing project at a land fill site is purchasing into a best business practice that should be on-going, and in some countries is a mandatory requirement.
Therefore this would not constitute an offset project.
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A genuine offset project is one that:

  • would not be carried out without offset funding - including your contribution,
  • goes beyond legal requirements,
  • is beyond the scope of normal and best business practices and
  • can demonstrate actual carbon / GHG reductions.

Directory of Offsetters (pdf)

Members can now go to the database and answer the questions on 'What to ask a Carbon Offset Company'

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Produced by Environmental Practice at Work Publishing Company Ltd. Copyright 2007