Offsetting Guidance

Carbon sequestration is often supported through ‘offsetting’ schemes.

Carbon offsetting is a form of carbon trading that enables organisations to compensate (or offset) their own greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions elsewhere 

Background

The Summary of Greenhouse Gas Emissions in Cumbria report identifies the scale of carbon emission reduction and sequestration required through tree planting and peatbog restoration to meet the Zero Carbon Cumbria Partnership’s ambition of net zero carbon by 2037.   

Whilst the reduction of emissions is our priority, the 2037 target cannot be met in that way alone and CAfS recognises the role of sequestering carbon as part of the suite of measures needed.

Certifiable carbon credit (offset) schemes 

The principles which should be applied when utilising offsetting schemes are as follows: 

a) Offsetting is a mechanism of last resort which should only be used to offset those carbon emissions which are unavoidable. 

b) The reduction of Scope 1, 2 and 3 emissions* should be the first priority for action by organisations, individuals, sectors.  

c) If it is clear, during the development of a strategy to reduce Scope 1, 2 and 3 emissions, that carbon neutrality can’t be reached due to unavoidable and irreducible carbon emissions, organisations or individuals may choose to purchase measurable, verifiable emission reductions from certifiable projects (carbon credits) in advance of the full implementation of the strategy. 

d) However, it is crucial that investment in carbon credits should not be at the expense of a budget for carbon reduction measures. 

e) In the future, technically viable carbon reduction options may become available to organisations which could lead to further reduction or elimination of their remaining carbon emissions. Organisations should keep seeking to reduce carbon emissions even after having resorted to carbon credits. 

The Institute of Environmental Management and Assessment (IEMA) has set out a  ‘Greenhouse Gas Management Hierarchy’ involving four stages: eliminate, reduce, substitute, compensate. This can be found in Figure 1 in their report Pathways to Net Zero.  Figure 5 in the same report illustrates how to schedule the transition through these stages. These figures may help to illustrate points a) to d) above.

f) When communicating about carbon neutrality, net zero carbon or net emissions reductions, organisations should make clear that emissions have not all been eliminated, but that carbon credits or offsets equivalent to the emissions remaining have been purchased.  

g) Where formalised carbon credit schemes are made available or utilised they must result in the removal of carbon emissions from the atmosphere, not just the reduction of carbon emissions. They should involve activity which would not have occurred anyway as business as usual, and therefore ensure additionality. 

h) If using formal carbon credits, this should be through a high quality and independently verified scheme and organisations should undertake due diligence to ensure additionality. WWF has produced comprehensive guidance on what to look for in a scheme.

*Scope 1 covers the organisations direct emissions eg from burning fuel. Scope 2 covers emissions created by the production of the energy used by the organisation eg from electricity generationScope 3 covers emissions created by its suppliers and customers as a result of its activity.

Problems with offsetting 

Many companies are reported to be using carbon credit schemes without having taken meaningful action to reduce their scope 1, 2 or 3 emissions, or are using dubious, unproven schemes, yet then claiming to be carbon neutral. This is termed ‘greenwashing’.  

A tree can take 15-20 years before it starts to sequester carbon dioxide. When trees die or are burned, most of the carbon fixed into their tissues (trunk, branches and leaves) will return to the atmosphere.

Alternatives to offsetting

Insetting 

Insetting is the investment by an organisation in interventions within their own value chain which enable the avoidance, reduction and sequestering of emissions in upstream or downstream operations. In this way, organisations are making their own practices, products and services more sustainable. 

The scope of insetting can be limited by the organisation’s own value chain, for example a company that provides at home carer services would have limited options for insetting as the business involves very limited equipment and the service is delivered in the client’s home. 

Supporting local decarbonisation projects 

Climate-conscious organisations that have limited supply chains in Cumbria, and so have limited options for insetting, may want to acknowledge their carbon impact generally by donating to support local decarbonisation projects. This does not provide accredited carbon savings. If you would like to talk about supporting CAfS decarbonisation projects then please contact us on [email protected].