By Molly Millar – Sustainability Writer
Some environmental experts argue carbon offsetting is a vital tool in our fight against climate change. Others, however, claim the concept papers over the environmental sins committed by polluting businesses. So what’s the truth?
Well, carbon offsetting can indeed help reduce greenhouse gas emissions – but it’s often abused by companies painting themselves “green”.
In this blog, we’ll explore the concept of carbon offsets and how its correct use can help to halt the climate crisis while bringing long-term value to your business.
What is carbon offsetting?
Carbon offsets are an important asset in the world’s fight against climate change and can bring huge benefits for your company.
Imagine paying someone on the other side of the world to give up their car rather than having to do it yourself. It doesn’t really matter who’s now cycling to work; the amount of emissions saved is the same either way, right? This trade between those producing carbon, and those keeping it out of the atmosphere, is how carbon offsets work.
Offsets are sold and traded as carbon credits, where one tonne of carbon dioxide equals one carbon credit. Buying credits means donating to projects around the world that reduce the amount of carbon that would enter the environment in future (such as building solar farms to reduce dependence on fossil fuels) or removing existing carbon (like tree planting).
Offsetting is a key step for businesses hoping to go carbon neutral, meaning the entirety of their emissions are balanced out by offsets. Let’s look at the pros and cons of carbon offsetting and how your company can use them to smash its sustainability goals.
The benefits of carbon offsetting
We need to drive down our greenhouse gas (GHG) emissions to avoid the worst effects of climate change. Carbon credits let individuals and organisations easily do so. For businesses, offsetting is one way of showing your customers you care about your environmental impact. The result: a feel-good factor about your brand. In one survey, 84% of customers said they would consider avoiding a brand with a poor track record on sustainability.
Carbon offsets can involve protecting natural carbon sinks such as forests and the ocean, in turn helping preserve biodiversity. But as well as helping to defend the natural world, many projects can also support communities in the Global South that are the most vulnerable to climate change. For example, by providing rural communities with renewable power or cleaner cooking stoves, creating jobs and improving health and wellbeing in the process.
Cons of carbon offsetting
Offsetting often draws criticism with sceptics questioning projects’ effectiveness. For one thing, it is pointless to buy offsets with a wind power plant that was already going to be built. Nothing has been saved. The scales aren’t balanced. The greenwashing beacon is sounding loudly!
Tree planting is a common theme in offsets and brings its own set of concerns. Projects that promise to reforest select areas will need to grow the right kinds of trees for the local area. They also need to work in tandem with local (often indigenous) communities, and maintain the forests over a long period of time. Newly planted trees can’t to suck up much carbon for many years, while forests are often in danger of being destroyed by fires and drought.
The biggest concern with offsets, however, is fears that carbon credits are treated as a ‘get-out-of-jail-free’ card by some companies. This essentially allows them to pollute freely while showing off their “green credentials” to their customers.
To combat climate change, we need people to tackle the root of their polluting behaviour, not just tick a box to make it go away. One tip: don’t let carbon offsetting distract you from the more impactful goal of reducing your business’ emissions.
How does carbon offsetting work for businesses? and how to do it
In the wake of the climate action summit COP26, many businesses are looking to boost their sustainability, so the market for carbon offsets is massive. There are many schemes for carbon offsets in the UK, but stick to regulated, impactful carbon offset projects. Look for those that have been independently verified, for example by the Gold Standard or the Verified Carbon Standard.
Think about whether you want to support local projects, like re-wilding forests in the UK, or those that operate internationally. Is there a particular type of project that makes the most sense for your brand? You can also choose offsets that align with the Sustainable Development Goals (SDGs). This would expand your positive impact in the world, from reducing poverty to preserving clean water.
In terms of costs; your carbon offsetting budget will depend on how big your business’s carbon footprint is, and by how much you want to cut it. Generally, carbon credits from the Gold Standard and the Verified Carbon Standard generally cost between £10-25 per tonne and many schemes offer a subscription model.
Carbon credits can play a pivotal role in bolstering your business’s sustainability. They can also stop the worst effects of global warming, protect our natural world from degradation, and equip the world’s most vulnerable with the tools they need to tackle the climate crisis. When done right, offsets will bring value to your company and benefit the world.
Ready to discover how carbon offsetting can become a key part of your sustainability strategy? Get in touch with our team today.
