Choosing the right offset by Climate Zero

Consideration: Standards

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The standard that was used to create the offset.

You will know this based on the type of ‘credit’ that you are purchasing and the acronym that comes after it.

Examples

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Market Australian Carbon Credit Unit (ACCU)
Clean Development Mechanism (CDM)
Gold Standard Verified Emissions Reduction (GS-VER)
Verified Carbon Unit (VCU)

More information on standards

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Unverified units are credits that are created by project developers that do not go through the accreditation and auditing process to create. The verification process is costly and therefore encourages large-scale projects, so some great projects are unverified. However, it is important that you seek transparency into the details of the project to ensure it is additional, permanent, and actually exists. It is important to recognise that unverified projects cannot be used towards Climate Active Carbon Neutral claims in Australia at this time.

Consideration: Location

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The location of the offset project matters.

You often get what you pay for with carbon credits. Be wary of cheaper credits, as price can often (though not always) indicate quality.

What to look for in a location

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Ideally, projects that are geographically aligned to your business operations.

Consideration: Offset type

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Whether the project removes emissions (greenhouse gases are drawn down from the atmosphere) or avoids emissions (future greenhouse gas emissions are avoided thanks to the project)

Preferred offset type

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Sequestration activities that involve the removal of emissions from the atmosphere and are put back into vegetation through biodiversity plantings, human-induced regeneration, and soil carbon.

Consideration: Co-benefits

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The co-benefits created through the offset project. This refers to projects that have additional environmental and social benefits resulting from the emissions reduction activity.

What to seek as a co-benefit

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Co-benefits can include economic empowerment of disadvantaged communities, health benefits of project participants, and protection of vulnerable environmental areas.

Consideration: Business alignment

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Review how the project aligns with your business activities or interests for your stakeholders.

Cheaper offsets can be alluring to gain Carbon Neutral certification, however, they can be misleading if the purchased credits are from projects that have nothing to do with your business operations.

Ideally, the offsets you buy would directly impact your industry and move it closer towards climate-friendly operations. Consumers and stakeholders may be less than thrilled to find out that your carbon neutral claims are based on purchased offsets from unrelated locations & industries.

It is important to be transparent with your stakeholders about the types of offset projects you have purchased.

Ideas for business alignment

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If possible, look to align offset projects with your business operations. For example, if you are a business in the food industry, look for farm-based offset projects.

If you are a tourism business, look for projects that support regeneration within your region and that you can promote to your customers.