Offsets Are Part of the Solution! Offsets can be created by:
Increasing energy efficiency in buildings, factories, or transportation
Generating electricity from renewables such as wind or solar
Modifying a power plant or factory to use fuels that produce less GHG
Putting wasted energy to work via cogeneration
Capturing carbon dioxide in forests and agricultural soils
What is an offset?
A greenhouse gas (GHG) offset is generated by the reduction, avoidance, or sequestration of GHG emissions from a specific project. Offsets are so named because
they counteract or offset greenhouse gases that would have been emitted into the atmosphere; they are a compensating equivalent for reductions made at a specific source of emissions.
The Climate Trust invests funding from power plants,
businesses, organizations and individuals into projects that offset the GHG emissions resulting from activities such as generating electricity, running a business, driving, flying, heating a home, etc. Offsets
are a critical piece of the climate change solution, and because offsets can
be readily implemented using existing technology, they make a difference today.
Industrialized countries will have individual emissions targets that add up to a total cut in GHG emissions of at least 5% from 1990 levels by 2012
Creates a market for GHG emissions trading which places emitting constraints on multiple business sectors
Regardless of US participation, many multi-national corporations will be operating under the Kyoto accord
Importance of offsets
Offsets are an essential
part of an effective climate policy precisely because they can be implemented
quickly and at a relatively low cost. Given the level
of emissions reductions that must be achieved to stabilize the climate, the
growing sense of urgency for immediate action, and the societal cost savings
that offsets represent, offsets are an indispensable component to real climate
change solutions.
Offset Criteria:
To be certain that an offset project results in a true net benefit to the
environment, it must meet two essential tests:
It must be demonstrated that an offset project would not otherwise occur
without the funding provided by the offset purchaser
Results must be rigorously quantified.
To measure the impact, a baseline projection of emissions without the offset
project must be developed, and then actual emissions must be measured. The
difference between the actual and the projected emissions is the GHG benefit.
A third party with no financial interest in the project must verify the approach
and calculations used to quantify the results.
Additional Co-Benefits to Offsets
In addition to reducing GHG emissions, offsets commonly produce other environmental,
social, and economic co-benefits including:
reductions in other atmospheric pollutants
restoring degraded lands
improving watersheds and water quality
protecting endangered species
creating jobs
saving money on electricity and gasoline
Investing in projects with strong co-benefits helps us leverage our funds
for the greater good of the environment, economy, and society.
GHG Offsets and Green Tags
The Climate Trust offsets come from projects that reduce GHG emissions in many
sectors (green buildings, industrial efficiency, forest sequestration, transportation,
as well as renewable energy).
Our offset projects are not implemented until after we provide our funding
commitment. We call these projects "environmentally additional",
and it helps ensure that overall economic activity becomes less greenhouse
gas polluting over time.
High quality, green tags come solely from certain renewable energy projects
built after 1999. They tend to cost more than GHG offsets because they are
based on a single set of technologies that are more expensive at reducing GHG
emissions.
