Carbon Credits

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Offset units or carbon credits can be used to compensate for emissions you cannot reduce and to bring your carbon footprint down to zero. The purchase of carbon credits supports projects that reduce or remove emissions from the atmosphere, such as reforestation, renewable energy or energy efficiency. For example, a project may reduce emissions by changing the timing of savanna burning in Northern Australia or by building wind farms in India. 

One carbon credit is issued for each tonne of emissions avoided or removed from the atmosphere. The projects and credits are verified through private and international standards. These standards ensure that the projects are implemented, run and managed properly and the credits they generate represent real and actual emissions sequestered or avoided. 

To offset your emissions and make a claim of carbon neutrality, you need to cancel eligible offset units equivalent to your carbon footprint. Cancellation is done through an official credit register which ensures the credit cannot be sold or used again.

Co-benefits of offsetting

Many offset projects deliver social, economic or environmental outcomes in addition to emission reductions. 

Environmental benefits include increased biodiversity, maintaining habitat for native animal and plant species, improved local air and water quality, avoiding vegetation clearance, re-establishing vegetation on previously cleared areas, and improved environmental management. Social and cultural benefits are the positive aspects for communities where a project is based such as employment for local people, living and working on country, capacity building, improved health and education, and access to clean and affordable energy. Economic benefits occur when income from the sale of offset credits flows to the community where a project is located and often translates into employment and community support, improved infrastructure, technology transfer, and increased economic activity. 

When considering offsets, many organisations choose to support projects that align with their corporate values. They may look for projects that help people and communities, conserve natural resources or support moves from conventional to renewable energy. We can connect you with a diverse range of projects that deliver additional co-benefits, such as meeting United Nations (UN) Sustainable Development Goals (SDGs).

Source: Climate Active