There is a limit as to the amount of greenhouse gas reduction a company can achieve, even after exhausting all the deliberate efforts to go the eco or energy efficient way.

The environmentally-concerned you or your company can choose to buy carbon offsets (which is a form of carbon credit) to reduce your carbon foot-prints. The idea behind offsetting is simple. You calculate your emissions and then decide the amount you intend to offset. You then purchase this amount of offsets (or carbon credits) to neutralize emissions impact on the environment and climate change.

A carbon offset is a financial instrument facilitating greenhouse gas (GHG) emissions reduction. When you buy offsets, you are actually funding projects which cause an equal emissions reduction elsewhere on Earth. Climate change is a global problem. Therefore carbon reductions will have the same impact irrespective of the implementation location.

Projects involved are of wide varieties of nature, relating to renewable energies, fuel efficiency rectification, fuel switching, projects that lower energy requirements via better lighting materials, buildings or public transport.

Some large EU companies are under mandatory programs to offset their carbon emissions. In its annual survey of travel managers, the Association of Corporate Travel Executives (ACTE) found that 61% of firms had a formal corporate social responsibility (CSR) policy - an increase of 53% from previous year, suggesting the notion of planning travel more carefully is taking hold more widely.

There are 2 types of offset markets.

Regulated market that includes projects from the Kyoto Protocol projects; the European Unions Emission Trading Scheme.

Voluntary market which is a smaller market. An individual may purchase directly from this market to offset emissions for his air travel.

Offsets are increasingly popular as a cheaper and more convenient means to neutralize an individual's (or company's) emission. For example, Dell has purchased offsets for its carbon emission during shipping process. Travel agencies have started giving their customers the option to purchase offsets to decarbonize their travel. NGO's and corporations have also started to purchase offsets for their employees' emissions, for consumption of electricity in office.

However, the effectiveness of carbon offsets is difficult to assess, and debatable. Critics disagree with the principle of carbon offsets, regarding it an effortless way for the 'feel guilty' to 'feel good' in paying for absolution rather than diligently changing their emissive behavior. According to George Monbiot, an environmentalist and writer, carbon offsets are an excuse for business as usual with regards to pollution.

Criticisms have also cast doubts on the issuance of carbon credits with regards to adhesion to permanence and additionality of specific project types, particularly the forest related projects. They are doubtful if there is definite greenhouse gas benefits along the entire life cycle of the raw material. (Pic. Afforestation).

How to Buy Good Carbon Offsets for Real Emissions Reduction
Carbon offsets are offered by many providers, some are non-profit organizations while others are profit-making companies. Choice of appropriate provider is very important to ensure actual reduction of emissions as intended.

There are four criteria to look at when purchasing carbon offset (or carbon credits) from a provider:

Rating: Providers are rated according to the quality and types of projects they support; transparency related to management of how offsets are put in place, ethos and pricing. Price can vary a great deal between providers, due to differences in project nature, cost and administrative overheads.

Additionality means that the the carbon offsets you purchase actually support a project (examples include wind and solar power, forestry, and methane capture and combustion ) that would not have happened without your extra money. Some projects lack additionality, meaning that they would have occurred even without the support of carbon offsets.

Permanence means that the project you’re supporting isn’t just temporary - the forest won’t be burned to the ground next year; the wind farm won’t be dismantled due to unpleasant visual impacts.

Certification: Preferably, a choice provider should have been certified by an independent certifying body that it is actually doing what they claim that they are doing with your money. Unreliable providers, in many occasions, have sold the same offset more than once, or money has failed to reach the project as promised. Several certification standards have emerged to address these issues.

For individual purchasers of carbon offsets, most provider websites include a carbon calculator which estimates the carbon dioxide emitted by flights, car journeys or other energy use. The website then allows the offsets to be purchased online. This money is allocated between the projects supported by the provider.

For businesses or organizations purchasers of carbon offsets, a discounted price and more flexible options as to choice of specific projects are available.

URBN Hotels & Resorts Shanghai is the first of 20 design-centric, carbon-neutral properties to be developed in China to facilitate green living of its dwellers. Management would track all energy expenses by the hotel and guests' travel. Carbon footprints are to be decarbonize by purchase of CERs from projects in China.
(NYTimes Dec. 2007)

The UK’s Foreign and Commonwealth Office (FCO) was the first organization to use the carbon offset scheme. In 2006/07, a “pilot” trade was closed by buying Certified Emission Reductions from a wind farm in South Africa. This deal offset 40,000 tonnes of carbon emissions, generated by the air travel of FCO Ministers and Staff based in the UK.

In 2004. The REEEP scheme provided a solid project selection procedure where in cooperation with REEEP’s Global Network, other NGOs, carbon brokers and the respective client, the most appropriate and highest quality projects were selected for offsetting.

The carbon credits that the FCO purchased from South African wind developer, Genesis Eco-Energy (Pty) Ltd., through the REEEP scheme was globally the first major travel offset program by a government department. (Reeep.org)

The success and the viability of carbon offsets very much depend on the quality, transparency, fund management ability and integrity of the providers, and choice of projects. If chosen and researched carefully, carbon offsets option can make a real contribution to emissions reductions for the well-being of the Earth.

References and related news:

Effective Change or Environmental Absolution?:Nau.com
Introduction to Carbon Offsets: Carboncatalog.org
How to Buy Carbon Offsets: Carboncatalog.org
How Can You Trust Carbon Offsets?: Ecopreneurist.com
Carbon Footprint Calculator: Carbonfund.org
Benefits Questiooned Regarding the Use of Carbon Offsets: Bizjournals.com/2007/04/23/

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How to Buy Good Carbon Offsets for Real Emissions Reduction Carbon offsets are offered by many providers, some are non-profit organizations while others are profit-making companies. Choice of appropriate provider is very important to ensure actual reduction of emissions as intended.

How to Buy Good Carbon Offsets for Real Emissions Reduction
Carbon offsets are offered by many providers, some are non-profit organizations while others are profit-making companies. Choice of appropriate provider is very important to ensure actual reduction of emissions as intended.