Carbon Offsetting

The overwhelming consensus amongst world leaders and the global scientific community is that the rate of climate change is accelerating. The latest reports from the Intergovernmental Panel on Climate Change (IPCC) states that the world has six years to act on climate change or face unavoidable and catastrophic consequences.

As individuals, our lifestyle demands that we consume energy and emit carbon pollution into the atmosphere. Around the world, people are beginning to see the benefits and necessity of avoiding and reducing their carbon footprint and increasingly people are looking to take action to combat climate change.

What are Carbon Offsets?

A carbon offset represents a one-tonne reduction of carbon dioxide-equivalent gas in the atmosphere. Carbon offsets may be purchased by individuals and businesses to reduce their carbon footprint. These offsets attribute a value and pricing mechanism to carbon pollution thereby providing the incentive to reduce carbon emissions.

What is the theory behind Carbon offsetting?

Carbon offsetting evolves from the idea that any reduction of carbon emissions in the world is worthwhile. When you offset your carbon footprint through the purchase of carbon offsets, you are investing directly into projects that reduce carbon emissions.

Why do people buy carbon offsets?

As people and businesses become more aware of their own contributions to global warming, carbon offsets are a way to mitigate their emissions. The money from the sale of the carbon offset then funds carbon sequestration projects (such as reforestation) that will offset an equal amount of CO2e. Most people who purchase carbon offsets live in developed nations like Britain, Australia, America and the EU where drastically lowering domestic emissions is currently difficult and expensive. As such, a business or household will find buying carbon offsets more economical than retrofitting a building, factory or eliminating operational carbon emissions.

What determines the price of carbon offsets?

The price of a carbon offset is determined by the market and the forces of supply and demand. At present, the price of a offset varies, however, it is predicted to rise due to the international community moving towards a global low-carbon economy, the increased demand for emission-intensive goods & services and the lack of available carbon abatement opportunities and projects.