What is carbon offsetting?
The World Resources Institute defines a carbon offset as “a unit of carbon dioxide-equivalent (CO2e) that is reduced, avoided, or sequestered to compensate for emissions occurring elsewhere”. Carbon offsets provide financial support for greenhouse gas (GHG) reduction projects around the world.
These emissions, be that carbon dioxide or methane, are generated by global value chain operations, including raw material extraction, production as well as distribution and consumer use.
With carbon offsets, the carbon footprint of a product can be calculated and subsequently paid and compensated via projects that work to remove a volume of carbon from the atmosphere by sequestration or avoiding future emissions.
Carbon offsetting projects vary in their size and scope. For example, they may focus on reforestation, forest protection, land conservation and restoration and building the infrastructure for renewable energy sources such as biogas, biofuel, solar power and wind. Alternatively, they could also come in the guise of projects with a socio-economic community focus such as clean water access, transforming poultry litter to power renewable energy and creating clean, energy efficient cooking stoves in rural villages. Simplizero also ensures that all of our projects are situated in locations where it is imperative to enable a phase out of fossil fuel activities.
It is important to note that companies that heavily rely on fossil fuels should not be allowed to use carbon offsetting projects to mitigate their total environmental impact. Instead, as a priority, the funds dedicated to offsetting carbon should also be attributed to investment in research and development for innovation, such as clean technologies, that can help deliver on progress to reach climate targets set out in the 2015 Paris Agreement.