Four steps to high-integrity carbon offsetting

Global temperatures are on track to warm by +2.7°C by 2100 which will result in catastrophic consequences. Businesses must take action now, starting by reducing their emissions as much as possible and offsetting what cannot yet be reduced or avoided. Carbon offsetting, if done right and well, is a critical weapon in our fight against climate change. Why? Because it offers a way to combat unavoidable emissions now, not the years and decades it will take to develop and deploy at scale technical innovations and carbon capture technologies. To ensure maximum positive impact for the planet, we collectively need to identify and support climate projects that deliver on high quality criteria.

With the demand for carbon credits set to increase by a factor of 15 between now and 2030, setting a high quality standard will be key to making a difference. Here are FOUR steps you can take directly or endorse as industry leader to ensure the increasing demand funnels to only high-integrity carbon offsetting.

ONE – Build trust through transparency

Our CEO, Dave Rouse, is at COP27 this week, speaking to delegates and leaders from around the world about why fully transparent carbon offsets are critical to fighting climate change. By “fully transparent”, he means the ability to track every contribution to detailed information about the reforestation and clean energy initiatives that benefit from the funds. This level of transparency is the only way to build trust in the developing market of carbon offsets.

There are a growing number of skeptics who question the authenticity of carbon offsets, citing examples of unscrupulous operators. This is unfortunate to say the least, because – right now – we need to ramp up support for high-integrity carbon offsetting. It is the key to us achieving our decarbonisation targets.

Absolutely, we need long-term and systemic change across high-emitting industries like aviation, shipping, fashion, agriculture, and certain energy sectors. Unfortunately, it will take decades and trillions of dollars for these industries to literally clean up their acts: to develop carbon-friendly technologies and reform their supply chains. In the meantime, we need high-trust providers, like CarbonClick, to help identify and support the climate projects that are making a real difference. There is no other practical option.

TWO – Set high quality standards for offsetting projects

In addition, regulators across the globe must work together to set uniformly high standards in order to put an end to those unscrupulous operators who peddle low cost, poor value offsets. (The new ISO 5001 standard will help set the framework for some of these reforms.)

Unlike those unscrupulous operators, CarbonClick has spent years and invested many millions to develop a fully transparent, wholly accountable system of trust. We are the only provider to enable real-time transparency, whereby any contribution can be instantaneously traced to one or more high-integrity climate projects. This is the best practice for high-trust carbon offsets.

THREE – Advocate for practical action now

CarbonClick is on the front-line, advocating for reforms and asking others to follow our lead.

Dave’s presence at COP27 is a good example of this. In fact, this is Dave’s second COP. At COP26, he called for businesses to take practical actions to reduce and offset emissions in order to limit global warming. At COP27, Dave is again calling for leaders to #shutupandact by taking practical actions, this time along three themes:

 – Continue and accelerate initiatives to reduce carbon emissions

 – Adopt high-integrity carbon offsetting as a means to address unavoidable emissions until new innovations and long-term reforms catch-up 

 – Weed out the unscrupulous operators of carbon offsets in order to protect our planet and encourage industries to embrace and support climate projects that are making a real difference. 

You can follow Dave on Linkedin or Twitter. More importantly, as a business leader, you can advocate for these same practical actions. 

FOUR – Confront the skeptics on why we should embrace carbon offsetting

Along the way, you may face skeptics who question the authenticity of carbon offsets. In response, we encourage you to research what works and what does not, to visit our website, or to get in touch with one of our industry experts. We can help you understand carbon offsetting and ensure you have the information and support you need to progress your journey to a more sustainable future.

In the meantime, here are key FAQs to help you address some of the more common questions from skeptics.

Aren’t carbon credits just lazy?

High-trust (projects with integrity and accreditation) carbon offsetting is part of the solution. Companies should be looking at every way possible to overhaul their business operations, both upstream and downstream, in order to reduce emissions/carbon footprint. In the meantime, they should work only with high-integrity providers to offset emissions that are hard to avoid. Working with an external provider like CarbonClick might seem ‘lazy’ but it makes no sense to attempt to replicate expertise in high-integrity carbon sourcing, management and transacting. It’s not your core business. It is ours.

Doesn’t it excuse people from cleaning up their act? 

No. Carbon offsets are not the long-term solution. It is a vital component to fighting climate change now, allowing time for industries to develop and deploy long-term and permanent solutions. According to IATA, the estimated reliance on carbon offsetting to reduce emission will be substantial for decades to come.

Do carbon offsetting projects work? 

Yes absolutely. The science is accurate. The problem is when companies support projects with low integrity. To ensure high-integrity, we encourage companies to consider six high-quality standards:

1. Is it real? The carbon sequestration or emissions reductions have taken place.

2. Is this creating an additional impact? The project would not happen without carbon financing.

3. Is it quantified? The carbon offsets are accurate and demonstrate no risk of being double-counted.

4. Is the impact permanent/no leakage? For example, if it is a forestry project, is that forest protected for at least 50–100 years and is there assurance that – in protecting that forest – carbon emissions are not increased elsewhere.

5. Is it verified? The project quality has been independently verified by a reputable registry.

6. Are there co-benefits? By supporting the climate project, there are benefits to communities and biodiversity, with no negative consequences to other communities or biodiversity. 

What are the policy recommendations that can improve the integrity of carbon offsetting?

CarbonClick is working with industry leaders to identify recommendations that can be easily adapted to markets across the globe. At a high level, we advocate for transparency, independent audits to ensure high-trust accounting and verification, reappraisal of climate projects based on scientific developments, public aid for providers that demonstrate best practice innovations, and continuous research and development for high-trust climate projects. In addition, we believe all climate projects which generate carbon credits must also support at least 3 of the UN Sustainable Development Goals. Most importantly, we are calling for cross-industry so we may regularly share insights and improve quality standards. 

What about forest fires?  Thanks to climate change, offset programs may go up in flames.

According to Verra, there’s actually no evidence to support this. Wildfires do occur and they are in the public frame. However, there is no evidence they are impacting climate projects and, in actual fact, the existence of wildfires is a strong argument for carbon finance. That’s because climate change means forests must now be actively managed to reduce fires, and that’s one of the roles for climate projects.