Carbon Offsets – What Are They & How Do They Work

Are you curious about how carbon offsetsetting can be integrated into the transition to net zero? Find out more about what it is and how to use it.

Net zero, also known as carbon neutrality, is a great final goal for any medium or small company. It’s a worthwhile goal due to the moral benefits of participating in the resolution of our climate crises. The UK has pledged to reach Net Zero by the year 2050. We it is up to businesses like yours to take part in the effort. Another benefit is the increased reputation among future employees, new customers as well as potential investors.

What is carbon offset?

Net zero is in which your company has zero carbon footprint. Ideally , this is achieved by removing your emission of greenhouse gases completely. However, in some cases it’s economically unattainable to completely eliminate them, and in some cases it’s impossible. If, for instance, your business is based on concrete, then carbon dioxide is emitted in the making of concrete.

The United Nations recognised the difficulty in achieving net zero by the time of the Kyoto Protocol in 1992. They came up with a concept known as carbon offset. Carbon offset is the process of removing of carbon dioxide out from the air to offset the greenhouse gas emissions you’ve put into it. If you consider the carbon footprint of your business as type or accounting method, your carbon emissions are your expense as well as any offsets that you purchase are your earnings. It is your goal to break even each year in order to reach net zero.

It’s essential to not utilize carbon offsets to run your business just as normal. If your carbon emissions (or your carbon expenses) are at a minimum then the amount you offset (or the carbon revenue) to break even can become as minimal as is possible as well. The lower emissions mean it’s simpler for a country to reach net zero, and also more affordable for you since you’ll need less carbon offsets. The globally recognized climate neutrality norm which utilises the carbon credit exchange, known as PAS 2060 insists on reducing emissions prior to offsets for these reasons. Carbon offsets without first reducing emissions is now seen as greenwashing, and can ultimately harm, rather than improve the image of your business.

How can businesses offset carbon emissions?

To reach net zero, adhere to these steps:

Find out your carbon footprint
reduce your greenhouse gas emissions in a manner that is technically and financially feasible
Purchase a carbon offset to erase the remainder

There are a variety of carbon offset options that are available for those who want to invest. These include planting trees, conserving wildlife to the installation of insulation and renewable energy sources. Carbon offsets as a business is just beginning to develop. As demand rises and the business grows, expect new schemes to emerge and be eligible for carbon credits.

In 2021 the only two offsets that are accredited from the United Kingdom’s Environmental Agency are the Woodland Carbon Code and the Peatland Code. The other offsets will be added and you can follow the Environmental Agency’s guideline to determine the most efficient carbon credits. The more schemes are recognized internationally. If you’re interested in these types of schemes, then groups such as Verra as well as Gold Standard offer verification. If you’ve reached net zero, you may want to have the verification independently.

Next steps

Carbon offset is the last step towards achieving net zero. Net zero is an ideal objective for your business due to the positive reputational impact of your business by contributing to our climate change crisis. Before you can begin carbon offsets it is essential to first figure out the carbon footprint of your business and cut down on emissions to the maximum extent possible. You might want to consider the purchase of carbon offsets in order to offset any remaining emissions and make you a carbon-neutral company.