by Penne Cole

Created on: September 25, 2010   Last Updated: September 26, 2010

Purchasing carbon offsets is a way to reduce your carbon footprint by buying a share of an environmentally-friendly project. Some of these projects serve as carbon sinks, naturally absorbing the carbon that we produce. These include land use or change projects like buying a plot of land and planting trees on it. Other projects prevent additional carbon from being released into the atmosphere. Examples include retrofitting a building to make it more energy efficient or building a green energy plant to replace energy generated from coal or other more polluting sources. Buying a carbon offset will indirectly reduce your own carbon footprint by ensuring that an extra unit of carbon is either sequestered or prevented from being produced elsewhere.

Several companies have started to sell carbon offsets following the rise in our collective environmental awareness. However, not all of them are equally reputable. To make sure you get the most bang for your buck, there are several factors to consider when choosing your carbon offset provider.

Where do the offsets come from?

Carbon offset providers typically sell shares in an environmentally-friendly project. The brochure may give a generic answer like “renewable energy project.” However, that could mean a range of things, and the offset you are purchasing may not be a quality one. Providers will often give a detailed background on their projects so that you know exactly where your money is going. However, if the carbon offset provider is trying to hide the source or is unwilling to provide further information, find another one.

Are the offsets certified?

Certified offsets are ones that have been audited by a qualified third party to verify that they meet internationally accepted standards. Reputable bodies include the U.N. Clean Development Mechanism, the Chicago Climate Exchange, the Voluntary Carbon Standard, and more. Two important criteria used in certifying the offsets are additionality and permanence. An additional carbon offset is generated when a company voluntarily increases its energy efficiency beyond the regulated minimum. A permanent carbon offset is one that will last. Its durability depends on how easily the carbon offset will be lost, and how it may be recovered. For example, certified carbon offsets from a reforestation project will have detailed plans stating what the offset provider will do if the trees are destroyed by a fire or if the carbon stored in the trees is, in some other way, released

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