Carbon Credits 101
November 16, 2022

Carbon Offsets Explained

Carbon Offsets Explained

Carbon Offsets Explained

Carbon offsetting is a process that involves a reduction in, or removal of, carbon dioxide or other greenhouse gas emissions from the atmosphere in order to compensate for emissions made elsewhere.

The process generally involves companies paying other entities to reduce carbon emissions that they cannot currently reduce themselves.

The company may then count the emissions reductions they have paid for towards their own climate targets.

Revenue generated from the purchase of carbon offsets is often invested in environmentally friendly projects, like investments in green computing technologies.

Modern offsetting protocols aren’t without criticism. Some examples of common complaints are that: 

  • They may allow companies to continue emitting greenhouse gases without having to make any changes to their own operations.
  • It can be difficult to verify that the reductions have actually been made.
  • There is a risk that the money invested will not be used effectively.

Still, carbon offsets can be a useful tool for companies that are trying to reduce their emissions but are not yet able to do so completely.

If you're considering offsetting your carbon emissions, it's important to make sure you're working with a reputable company and investing in projects that will actually lead to greenhouse gas reductions.

When done right, it can be a helpful way to reduce your company's emissions and help fight climate change.

Companies can buy carbon credits, permits, from other entities. An example of this is using CCT to offset your carbon emissions, in this way the transaction is on the blockchain and easily accessible by any entity wanting to verify.

Climate Change Mitigation:

Carbon offsets are a type of climate change mitigation. 

Climate change mitigation is any action taken to reduce greenhouse gas emissions or enhance sinks, with the intention of reducing climate change. This generally involves reductions in human (anthropogenic) emissions of greenhouse gases (GHGs).

Actions can be individual, like reducing energy consumption at home, or be part of a larger system like investing in renewable energy.

Mitigation strategies are often complex and multi-faceted because there are many different types of GHGs and sources of emissions.

When it comes to choosing a carbon offset provider, it's important to make sure you're working with  a reputable company. There are a few things you can look for when choosing a provider, including:

  • Make sure the company is registered with a carbon offset registry like the Climate Action Reserve or the Verified Carbon Standard.
  • Check to see if the company has been accredited by a third-party organisation like Green-e.
  • Read customer reviews and testimonials to get an idea of the company's reputation.

When you're ready to purchase them, you'll need to decide how many credits you want to buy. The amount of emissions you need to offset will depend on your company's operations and climate goals.

Once you've chosen a provider and decided how many you want to purchase, a provider can help you select the specific projects your offsets will go towards.