Carbon offsetting has been in the headlines recently, and there is division amongst environmentalists on their function in sustainble development. But what is carbon offsetting, and what are the arguments for and against?
Definition
Carbon offsetting allows individuals or organisations to invest in environmental projects around the world in order to balance out their own carbon footprints.
Some pojects are designed around reducing future emissions, for example by providing clean energy technologies in developing countries. Other projects work by soaking up CO2 from the air through the planting of trees.
Individuals or organisations might offset their entire footprint, while others focus on the impact of a single product or activity.
The arguments for and against
The more that can be do to reduce carbon footprints the better, right? And there will come a point in reducing emissions where the current technology and cost barriers to go further are too great, so this is where carbon offsetting comes in, to neutralise the effects of any remaining CO2 emissions.
Proponents argue that carbon offsetting demonstrates an eco-conscience, and raises awareness of the risks of climate change and the need for action. They are ‘better than doing nothing‘. Consultancy firm McKinsey have suggested the voluntary carbon market may be worth upward of $50 billion by 2030, and this money is vital for fighting the effects of climate change.
However, critics have called carbon offsetting a distraction, allowing those that engage to feel better about their impactful behaviour without needing to address or change their ways.
Our guilty consciences appeased, we continue to fill up our SUVs and fly round the world without the least concern about our impact on the planet … it’s like pushing the food around on your plate to create the impression that you have eaten it.
George Monbiot writing in The Guardian, 2006
Furthermore, companies are using offsetting without specifying any conditions, and run the risk of greenwashing. Out of 4,000 organisations reviewed by Net Zero Tracker, only 10 per cent announced their intention to use offsets, and almost three-quarters gave no specific conditions. The Climate Change Commission has said the use of offsetting risks delaying net zero. They conclude “the role of a carbon credit should be to support, not discourage the reduction of actual emissions.”
Criticisms have also been levelled at schemes which do not deliver the environmental benefits they claim to. A 2023 investigation found that more than 90% of the carbon offsets verified by leading offsetting certification company Verra were not reducing deforestation, and the vast majority of credits being bought and sold were likely to be “phantom credits”
A number of industry organisations and think tanks are recommending offsetting as a credible strategy for reaching a net zero hospitality and brewing industry. Net Zero Now‘s industry protocols are built on The Oxford University Principles of Net Zero Aligned Carbon Offsetting. According to the multidisciplinary team that has published the principles, there are four key elements to credible net zero aligned offsetting:
- Prioritise reducing your own emissions first, ensure the environmental integrity of any offsets used, and disclose how offsets are used.
- Shift offsetting towards carbon removal, where offsets directly remove carbon from the atmosphere;
- Shift offsetting towards long-lived storage, which removes carbon from the atmosphere permanently or almost permanently; and
- Support for the development of a market for net zero aligned offsets.
For an example of a company approaching offsetting with a set of clearly definied rules, look to Nando’s. Since 2015, they have reduced the carbon footprint of a meal by 40% and have targeted further reductions by 2030. They are using offsetting projects to balance their footprint as they continue to reduce emissions.
Good or bad, offsetting is a tool for addressing the rampant emissions of carbon dioxide and other greenhouse gases that are choking our planet and contributing to climate change. How they are used will likely determine their value – if they are used as a marketing ploy, or to make someone feel better about their high carbon footprint then they probably aren’t very good. On the other hand, if they are an incentive to be greener, or used as a final step to bridge the gap to net zero, after all credible steps have been taken to reduce emissions, then there are reliable offsetting projects on offer that allow individuals and organisations to show their commitment to neutralising their environmental impact.
More resources
- World Economic Fourm: What is carbon offsetting?
- The Guardian: A complete guide to carbon offsetting