Carbon Offset Credits:
Make A Difference

Carbon Offset Credits come from two sources. Mandatory carbon reduction under the Kyoto Protocal applies to companies in the countries that have signed the agreement. These companies are required to either reduce their carbon emissions or offset them by funding clean energy projects.

Certified Emissions Reductions

These are the regulated, Kyoto protocol enforced Carbon Credits. These are generated by projects that reduce greenhouse gas emissions that go beyond a company's agreed reduction target. These projects can take a multitude of forms, anything from a wind farm project in a developing country to generating carbon sinks in the forms of planted forests. There are some serious concerns about this system being a carbon credit scam.

When a company runs projects that result in more Carbon being removed from the atmosphere than they are required to, they are issued with official Carbon Credits called Certified Emissions Reductions (CER). These can only be fron United Nations approved schemes. The CERs can then be traded and usually end up being purchased by companies that struggle to meet their reduced emissions quota. CERs are issued in tonnes of Carbon.

Voluntary Carbon Offsetting

The Carbon Offset Credits traded in these schemes are from both purchased CERs and also projects that have not gone through the UN approval process. In many cases these are small companies that are developing sustainable energy projects or Carbon reduction projects such as tree planting.

How do voluntary Carbon Offset Credits Reduce CO2?

The simplest method used by Carbon Offset projects is simply to plant trees. As the trees grow they absorb Carbon Dioxide and use it to produce sugars which then build the plant in the process called photosynthesis. This process effectively captures atmospheric Carbon Dioxide and turns it into plant matter, which is the reverse of what happens when coal is burned. In this, CO2 is released from fossilized plant material.

Is It A Donation?

It is easy to see Carbon Offset Credits as a donation toward cleaning up the environment and to a degree this is an accurate view. Carbon Offsets are voluntary schemes for both individuals and organizations but at the same time are an essential part of our approach towards becoming Carbon neutral. The effectiveness of voluntary Carbon Offsets rests on the reliability of the companies selling the credits.

How Do I Avoid Scams?

As with any other scheme that relies on goodwill, there are people who will try to take advantage of others for personal gain. The best way to ascertain the credibility of a Carbon Offset provider is to check their Not For Profit status with the Government they fall under. These organizations require very specific conditions to qualify for Not-For-Profit status and will definitely involve tax deductions for residents in Australia and possibly elsewhere. It is also reasonable to expect that genuine companies will readily promote this information. If it is not readily available, beware.

There are many companies and organizations offering Carbon Offsets. As with other offers, the well established companies are a safer bet than the new unheard of ones. More information on the companies offering Carbon Offsets and the projects they undertake will be posted very soon.

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