1. What is a Carbon Offset?
Whether you're commuting to work or attending a meeting, no matter how eco-friendly you try, everyday activities still produce carbon dioxide. Zero carbon doesn't mean zero carbon emissions, but rather offsetting carbon emissions through carbon reduction projects. This is the concept of carbon offsets.
You can think of it like this: Company A’s carbon emissions – Company B’s carbon reduction = 0
2. Which projects can earn carbon reduction credits?
Below are some examples of offset projects. These projects must also undergo a calculation and verification mechanism to produce credible carbon reduction figures.
Kasigau Corridor Redd+: Protecting Kenya’s forest habitats and wildlife, saving over 1 million metric tons of CO2 annually.
Southern Cardamom Redd+: Cambodia's Cardamom Mountains Rainforest is a global biodiversity hotspot. This project involves protecting wildlife and forests, while also promoting the development of local villages through biodiversity conservation.
The International Small Group and Tree Planting (TIST): Supporting over 90,000 farmers in Tanzania, Kenya, India, and Uganda to plant and maintain nearly 19 million trees.
Carbon Offset Dictionary
Carbon offset credit: A transferable unit certified by a government or independent certification body, representing the removal of one metric ton of carbon dioxide equivalent from the atmosphere.
Carbon offset project: A greenhouse gas reduction or carbon sequestration activity that generates carbon offset credits, such as renewable energy development, greenhouse gas capture, and reduced deforestation.
3. What controversies have plagued carbon neutrality?
Italian fashion brand Gucci withdrew its carbon neutrality statement in 2023, and KitKat chocolate abandoned its carbon neutrality goal in 2021. Why did these companies back off? There are two main controversies surrounding carbon neutrality. One is that companies are not proactive enough in reducing carbon emissions, relying solely on purchasing carbon credits to offset emissions. The other is that they purchased flawed carbon credits.
Many carbon offset projects have been found to have falsely claimed carbon reductions. For example, a project claims to have sequestered a certain amount of carbon, but the technology hasn't been implemented yet. Or it claims to have protected 300 hectares of forest from deforestation, but that 300 hectares of forest were never threatened with deforestation in the first place, making the claim of "protection" questionable.
4. How are carbon offsets calculated?
To calculate carbon offsets, we first need to prove "what would happen if we didn't do this project (baseline)?" and then calculate "how much benefit would we get from doing it?"
For example, based on past records, it is estimated that 300 hectares of forest will be cut down in the next 10 years. However, due to the forest conservation project, these forests are protected, and the carbon reduction benefit is 300 hectares of forest.
Because baselines and performance are often based on past experiences and assumptions about future expectations, insufficiently rigorous estimates can lead to controversy.
5. Can I apply for carbon offsets if I reduce carbon emissions? What is "additive"?
A's home has been replaced with energy-efficient LED lights, reducing electricity consumption; Company B has built an offshore wind farm and is selling the generated green electricity to the government. Are these carbon reduction activities eligible for carbon offsets? The answer is: "Probably not."
The reason is that after switching to LED lights, electricity consumption decreases, and electricity bills also decrease, making it a profitable, voluntary action. Because it's profitable, carbon offsets shouldn't be applied for. This is why, initially, some renewable energy investments could apply for carbon offsets. However, as investing in renewable energy becomes cheaper and more cost-effective than investing in fossil fuels, these profitable projects can no longer apply for carbon offsets.
6. What are the conditions for a “good” carbon offset?
- Will not cause significant harm to society or the environment. Example: In order to protect wildlife, prohibiting local residents from going to a certain area will cause community conflict.
- With exclusive ownership
Example: Poor management mechanism leads to a quota being sold to two sellers.
- Externality: It must be proven that the result is from a carbon offset project. Example: Forests that cannot be cut down according to regulations cannot be applied as the result of a carbon reduction plan.
- Permanent
Example: Planting trees and then encountering a forest fire could negate the carbon reduction benefits. (This type of contingency could perhaps be addressed through insurance.)
- Cannot be overestimated
Example: Deliberately overestimate the area that may be deforestation to increase the carbon reduction benefits.
7. Can carbon neutrality be achieved without carbon offsets?
Companies purchasing carbon offsets are often located far from the regions where the actual carbon reductions are being made. For example, a US company might purchase carbon offsets from a project in Africa or a small Asian island. Without a sound oversight mechanism, it's easy to purchase questionable carbon credits, potentially damaging a company's reputation.
There are specialized carbon offset rating agencies internationally, such as BeZero, Calyx Global, and Sylvera, whose ratings may provide valuable reference.
Some companies are choosing to start with themselves, requiring their employees and supply chains to reduce carbon emissions. This approach may be complex and slow, but it can help reduce controversy.
References:
Carbon Offset Guide (Chinese version), by Liu Zhongen and Tsai Hsiang-wu (April 2023). Originally published by the Stockholm Environment Institute and the Greenhouse Gas Management Institute.
※ This article is contributed by Associate Professor Liu Zhongen of the Department of Sociology at National Taiwan University.
Source: Environmental Information Center (https://e-info.org.tw/node/237342)
