Global warming is a topic which has provoked endless and heated debates. It’s one of the most significant threats facing humanity at the moment. Many believed that the global warming phenomenon was a hoax created by certain leaders to stop further mining and the use for fossil energy sources. But the consequences are now evident with changes in weather patterns that lead to huge crop failures, the occurrence of further killer storms and rising sea levels that could submerge numerous islands and force the displacement of millions of people, the widespread disappearance of animal and plant species, and the disappearance of coral reefs. The main cause of global warming is the burning of fossil fuels that produce huge amounts of greenhouse gases. Examples of greenhouse gases include Carbon dioxide and methane, fluorinated gases and nitrous oxide like perfluorocarbons, nitrogen trifluoride, sulfur hexafluoride as well as hydrofluorocarbons.
To ensure that life can continue to thrive on earth to sustain, the proper equilibrium of carbon dioxide has to be kept in the atmosphere. This is accomplished by neutralizing carbon dioxide released into the atmosphere by human activities like burning fossil fuels, driving vehicles and using household appliances as well as heating and cooling homes. But, regardless of the amount of effort we make, it’s nearly impossible to avoid all emissions that create the carbon footprint of our lives. Carbon offsets come into play.
Carbon offsets are programs that aim to offset or reduce our footprint, by purchasing carbon offsets from carbon credit trading exchange businesses. In simple terms, carbon offsets are credits for greenhouse gas cutbacks accumulated by an individual or a company which can be bought and used to offset(compensate) emissions generated by another person or entity. Carbon offsets are typically valued by tons in CO2-equivalents, often abbreviated as CO2e. One carbon offset is similar to the reduction of one metric tons of carbon dioxide. They can be purchased and sold via conventional platforms as well as international broker, and online retailers.
Also, carbon offset is nothing but investing in projects to reduce or eliminate CO2 emissions or greenhouse gases in order to decrease their carbon footprint, in order to protect the planet from the ravages of climate change. Carbon offset is a form mitigation. To compensate for the harmful carbon emissions, companies or individuals purchase carbon offsets, which means that carbon dioxide emissions and other greenhouse gases that harm the environment are reduced and controlled elsewhere. You can estimate your carbon footprint here.
Carbon Offsetting projects aim to reduce the amount of CO2 or the greenhouse gas (GHG) released into the atmosphere. The outcomes of these projects can be immediate or in the longer-term depending on the type of project. Let’s look at alternative sources of energy, or, in the case of renewable sources. If we consider the investment in wind farms or hydro-power plants that are built at dams, they are just investments to cut carbon emissions through carbon offset. Other examples of carbon offset could include afforestation, solar energy models, the disposal of agricultural and industrial products, etc.
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In layman’s terms, carbon offsets aim at the reduction of greenhouse gas emissions in order to offset excess greenhouse gas emissions that are generated elsewhere. Carbon offsets are a part of two main ways: the cap-and-trade market or compliance market and the voluntary market.
In the market for compliance an agency of the government sets limits for greenhouse gases emissions for certain organizations. The entities are required by law to adhere strictly to the limit on greenhouse gases. They do this by reducing emissions from their operations. They can achieve the reduction in emissions by incorporating equipment to their facilities to improve efficiency while reducing emissions, or by replacing their older vehicles with modern clean-burning vehicles. If an organization is able to reduce its emissions to a lower minimum required by law, it can sell credits to offset these cuts to other organizations that are having problems reducing their emissions in order to ensure that they comply with the minimum emission requirements.
The market for voluntary transactions however allows any individual or organization balance their carbon emissions by funding initiatives that lead campaigns toward reducing greenhouse gas emissions. Carbon offset projects can contain and store the gasses and prevent their emission into the air. Carbon offset projects could involve the planting and maintenance of forests or investing in alternative energy sources like solar wind and geothermal, reducing the necessity to produce electricity using fossil fuels which could contribute to the emission of carbon dioxide. Carbon offset projects could also involve destroying greenhouse gases already present in the atmosphere through neutralizing methane gas and capturing it in landfills.
Pros and cons of carbon offset
The government alone is not able to fully deal the climate change issue. The only way to be sure is to work in conjunction with private sector business and investors through the carbon offset scheme. In this regard, we’ll look at the advantages of carbon offset in greater detail:
Makes clear the intention
Carbon offset provides a strong assertion and is a credible option in efforts to reduce carbon dioxide emissions. It’s practical since it goes far beyond the typical discussion and goal setting that is that are part of policy-making. It is evident from the sheer number of companies and people who are a part of this population to create a cleaner and safe world.
Old businesses are relevant today
The majority of governments are taking measures to restrict businesses and organizations which contribute significantly in the production of greenhouse gases. Carbon offsets will help save many existing businesses from closing. How? The carbon offset programs require that companies who emit more greenhouse gases than the limit set for minimum emissions include accessories or tweak their processes to improve efficiency while at the simultaneously reducing emissions. This can greatly assist in reduce greenhouse gas emissions today and in the near future.
Helps to accelerate the expansion in renewable energy technology
In terms of how carbon offset works in the market, the voluntary market permits people or organizations to offset their carbon footprint through funding projects that aim to reduce the emission of greenhouse gases. These projects involve the installing wind turbines, solar panels and the setting up of geothermal energy plant and systems. The funds will drive forward the speed of development in renewable energy.
The damage that is actually caused by greenhouse gas emissions.
Carbon offsets that are paid for can determine the true costs of the harm done to the environment through greenhouse gases. Institutions, including governments, can make use of this information to create precise budgets for carbon neutrality.
Helps to identify hot spots in the supply chain.
Carbon offset requirements will force businesses to spend a lot on inspections programs to find hot spots (areas which could contribute to greenhouse emissions of gases) as well as allowing the maintenance and sealing off of these hot spots. This will save the company lots of money to purchase carbon credits if it releases more greenhouse gases than the minimal amount required in law.
Business owners can learn more about their company
Carbon offset allows the company’s owner to be aware the carbon footprint of their business. Carbon footprints are determined by measuring the actual numbers and steps are taken to decrease the carbon footprint prior to any offsetting being started. The owner also has the chance to interact with offset project creators and understand the details of carbon emissions and reduction.
Business owners can spend their money in a wise way
If you decide to engage in carbon offsets and offsets, you’ll face issues regarding how to allocate your budget. Carbon offsets will allow you to decide if it’s worth investing your money to pay for offsets for carbon or to put it into your business to cut carbon emissions within the company. The bottom line is that They all tie together because it’s nearly impossible to cut your carbon emissions completely.
The negatives of carbon offset
The investment in greener and less carbon-intensive processes is often overlooked.
The purchase of carbon credits can be used as a way to avoid the necessity to reduce emissions by buying credits without investing in renewable, clean energy.
It’s a sophisticated plan
Carbon offset is a complex process. It is first necessary to bring individuals and organizations to join the process and ask them to commit to reduce carbon emissions. There are also the process of buying carbon credits. This could require involvement from third parties. Payout mechanisms are also complex. In addition, because it is invisible commodities, the possibility of being manipulated is very high.
Fewer beneficiaries
The primary recipients of carbon offset schemes are the traders as well as NGOs and lawyers. The project developers do not benefit much, but they are the ones who conceptualize the scheme.
Complex red tape
Developers of projects must navigate the complicated formalities to obtain the permits they require. It could take months. This means that only big projects have the chance of funding the development expenses.
The carbon offset projects must be:
Real: These offset carbon projects shouldn’t be able to replace emissions from other sources.
Permanent The goal should be eliminating or reducing emissions for the duration of time.
Verifiable: The emission reductions which are reduced through these initiatives should be verified by a third party in order to confirm that the emissions actually decreased.
Two levels on which carbon offset is carried out. We will begin by defining the market for large-scale compliance. In the large-scale compliance market, the players include national governments, corporate businesses, non-governmental organizations and international organizations. They use carbon offsets as part in their social accountability and to monitor the maximum permissible amount of greenhouse gas emissions. The necessity to invest in this is to comply with the various guidelines they have to adhere to as part of Kyoto Protocol Annex 1. Kyoto Protocol Annex 1 parties. It is common to see a corporate firm invest into wind farm projects or an energy efficient model as a option for carbon offset projects.
According to the Carbon offsets daily’s observations in their piece from 2008 titled “Brands and carbon offsets” In this market, which is smaller known as”the voluntary market,” around 705 million carbon offsets have been purchased. If you calculate this, it amounts to around 123.4 million tonnes in carbon offsets. The carbon offset level is at a lower amount compared to the previous. But it is an integral component. In this case, individuals or businesses make use of carbon offsets to combat greenhouse gas emissions on a intimate and personal scale. They attempt to manage and reduce the emission of greenhouse gases that are released making use of transportation modes and electricity, as well as the combustion of fuels at a household level as well as other chores.
The scale for measuring carbon offsets is in metric tons of carbon dioxide equivalents, abbreviated as CO2e. They include the most significant greenhouse gases, namely. carbon dioxide (CO2) methane (CH4) and nitrous oxide (N2O) and perfluorocarbons (PFCs) and hydrofluorocarbons (HFCs) and sulfur hexafluoride(SF6). When we talk about one carbon offset, we’re talking about the diminution of 1 metric tons of carbon dioxide or any of the other green house gases, in the same amount.
Let’s take a look at different Carbon offset initiatives.
Renewable energy offsets typically include hydro, wind, and solar energy projects. Biofuels can also be considered a renewable energy source.
Methane combustion and collection is the next kind of carbon offset project. It involves the combustion and collection of methane produced from anaerobic sources industrial waste, as well as methane that is generated by landfills.
Forestry and land use seek to create natural carbon sinks in forests , and making use of soil. The sub-projects in these are reforestation, which is the restoration of a forest that was previously present, and afforestation which is the process of creating a new forest area and not deforestation.
Carbon offset in energy efficiency projects includes co generation facilities. Co generation plants produce heat and electricity from one power source. This improves the efficiency of the majority of power plants that otherwise use the heat energy generated.
Under the Fuel efficiency project, the combustion device is replaced with one that uses less fuel for each unit of energy provided. This assumes that the energy consumption does not change.
Energy-efficient buildings reduce the energy used by buildings. They use energy-efficient heating and cooling or lighting systems. One good example of the same is replacing of light bulbs by fluorescent bulbs. This will reduce energy use to a large extent.
There are a variety of debates related to carbon offset, but it is viewed as an appropriate way to end the damage done.