Carbon reductions

and offsets
making activities effectively
carbon neutral

Prepared by Liese Coulter, Pep Canadell, and Shobhakar Dhakal

Last update 3 December 2007
 The Goal

To internalize in our operations the costs

associated with climate change impacts
due to carbon emissions.
 Carbon Neutral

We use “carbon neutral” as a

short term for

zero net impact

on the radiative climate forcing
 Why are some people
going carbon neutral?

• Business profit
• Civil responsibility
• Environmental commitment
• Leadership
• To appease ethical remorse and guilt
Why should we be carbon neutral?

• Science bodies provide leadership on climate

change science, mitigation and adaptation.

• We recognize that our economic system should

internalize the costs of climate change and we
want voluntarily contribute to the shift.

• While the unregulated voluntary carbon market

is likely to be less effective than the regulatory
market, it gives us the opportunity to
”imperfectly act now” and support the valuing
of reducing carbon emissions.
 Carbon reductions and offsets

The Global Carbon Project addresses

issues in voluntary carbon offsets as
part of the portfolio of options to
reduce CO2 emissions.

See:
http://www.globalcarbonproject.org/carbonneutral
 Recommendations
1. Carbon offsets are an important early step.
2. Choose comprehensive carbon calculators.
3. Set meaningful limits of responsibility.
4. Put efficiency  first.
5. Purchase 100% truly new renewable energy.
6. The voluntary market has developed many credible offset
projects.
7. Offset projects that avoid emissions are best for the long-term.
8. Carbon sequestration in plants and soils can be vulnerable but
has additional benefits.
9. Tropical reforestation and avoided deforestation are efficient,
cost effective land based strategies.
10. Choose offset projects with stringent standards.
11. Integrate expenses for offsetting into the cost of activities.
12. Make a  carbon emissions inventory.
13. Aim for zero net carbon emissions.
1. Carbon offsets are an important
early step
• Voluntary carbon offsets are a grassroots development
adding to the portfolio of regulated mitigation strategies.

• Becoming carbon neutral involves three basic steps:

– CALCULATE carbon emissions and other greenhouse
gases from activities
– REDUCE emissions wherever possible through increased
efficiencies
– BALANCE the remainder by purchasing carbon offsets

• In the long term, voluntary carbon offsets are expected to

be a transient mechanism as low carbon strategies become
business as usual in the future.
 2. Choose comprehensive
carbon calculators
Calculating carbon emissions from activities is a necessary step
to design an emission reduction strategy and  purchase
equivalent carbon offsets.

Differences in the estimates result from:

1) considering CO2 emissions only versus all greenhouse gases:
methane (CH4), nitrous oxide (N2O), hydro fluorocarbons
(HFCs), per fluorocarbons (PFCs), and sulphur hexafluoride
(SF6)

2) including or excluding non-gas components that affect the

radiative forcing such as surface reflection (albedo) of plane
contrails and forest canopies

3) setting different boundaries for emissions responsibility, i.e.

considering only the energy used in a particular flight versus
adding a proportion of the energy used for airport services.
 2’. Choose comprehensive
carbon calculators
Calculators can give big
differences in the
amount of CO2 emitted
for a given trip. The
biggest reason from this
difference stems from
accounting for i) CO2
only, ii) all greenhouse
gases (CO2-equivalents,
and iii) full radiative
forcing. The latter is
recommended.

Choosing a provider accredited with a top Standard (see 10) gives

better chances that a comprehensive calculator is being used.
 3. Set meaningful limits of
responsibility
• The simplest, most commonly accepted and functional
emission boundaries follow the lines of financial responsibility.

• Boundaries are important to avoid double-counting emissions

and reductions and to include otherwise unaccounted for parts
of the total carbon footprint.

• Commonly agreed methods can provide some assurance of

standard practices.

• Standard practices are needed for international

implementation, as funding for reducing carbon footprints and
buying offsets becomes integrated into project accounting.
 4. Put efficiency first
It is essential to plan real reductions through increased
efficiencies before purchasing carbon offsets.

Emission reduction opportunities for offices

• Combustion in boilers or furnaces
• Generation of electricity, steam, or heat
• Business travel in cars, trains, buses and aircraft
• Employee commuting in light rail, train, buses and employee cars
• Production of office consumable materials and resources such as
furniture, paper, equipment, toner cartridges etc.
• Incineration of office waste or decomposition in a landfill
• Outsourced activities such as shipping, courier services and
printing services
 5. Purchase 100% truly
new renewable energy
The transition from fossil fuel energy generation to new
renewable energy can directly reduce atmospheric carbon
emissions.

• CERTIFICATION by an independent third party can help ensure

that you get the quantity, quality, and type of green power you
pay for. The certification will indicate that the green-power
companies are meeting the environmental and customer-
protection guidelines adopted by the certifying organizations.

• BUY accredited green power as close to 100% as you can afford.

• AVOID buying ‘green’ electricity products unless they contain

accredited green power.

• AVOID energy products with the description ‘renewable’ unless

they are accredited.
6. The voluntary market has many
credible offset projects
The two general categories are avoided emissions and sequestration.

• Solar Power - Generate energy from the sun's rays.

• Wind Power - Use winds in the atmosphere to create electricity.
• Hydroelectric Power - Harness water flows to generate electricity.
• Fuel Efficiency - Burn a particular fuel more efficiently.
• Fuel Substitution - Switch to a fuel which emits less carbon.
• Cogeneration - Create electricity and heat from the same source.
• Efficient Lighting - Replace traditional light bulbs with fluorescent lamps.
• Material Substitution - Change the input material for an industrial process.
• Environmental Buildings - Increase energy and materials efficiency.
• Public Transportation - Subsidize or encourage public transport.
• Methane from Industry - Collect and burn methane from industrial waste.
• Burning Agricultural Residue - Burn farming residue to generate power.

• Reforestation - Plant trees to absorb carbon dioxide from the atmosphere.

 7. Offset projects that avoid
emissions best for long-term
Projects that avoid carbon emissions
• Energy efficiencies through reduced energy
consumption
Carbon offsets based on energy efficiency rely on technical
efficiencies to reduce energy consumption and therefore
lower CO2 emissions.
• Renewable energy from displaced energy production
Emission avoidance projects that displace the production of
high carbon intensity energy to low or zero emission
energies require a greater change in infrastructure and
larger capital investments.
• Fuel emission reductions by cleaner energy
production
One option for emission reduction offsets is the improved
disposal of waste methane When methane capture for
power generation becomes business as usual this will no
longer work as a carbon offset.
8. Carbon sequestration - vulnerable
but has additional benefits
• Biosequestration offsets reduce atmospheric CO2
concentration by growing vegetation that will store carbon
in plants and soils.

• The permanence of these offsets is not always secured as

forest plantations are expose to fire, drought, pests and
climate shifts.
• Biosequestration offsets can bring multiple secondary social
and environmental benefits, including sustainable forestry,
reduced erosion, increased biological diversity and
hydrological regulation.

• Unintended negative consequences, such as the use of

limited water resources and biodiversity must be avoided.
• Biosequestration carbon offset projects need to
demonstrate a well integrated plan with other
environmental resource uses and a framework for
sustainable development.
9. Tropical forestry offers efficient
land based strategies
• Reforestation and avoided deforestation in the tropics are
the most efficient and cost effective land-based options to
reduce carbon emissions.

• When all components of radiative forcing are considered,

 greenhouse gases
 hydrological changes
 surface reflection (albedo),
the climate benefits of forest plantations in boreal and mid-
latitudes are smaller than in the tropics and in same
instances might be quite modest or nil.
 10. Choose offset projects with
stringent standards
High standards ensure carbon offset projects meet the minimum
requirements to yield real emission reductions:

• Additional – a genuine reduction can only be counted if it is in

addition to what would have been done in the normal social paradigm,
be it for business profit or ongoing improvements.

• No Leakage - offset projects in one place should not increase

emissions from another source elsewhere.

• Permanent - the risk of reversibility (eg, loosing the carbon back to

the atmosphere) should be minimal and have mechanisms in place to
offer replacement or compensation for any reversal.

• Verified - independent and transparent verification of reductions is

required.

• Efficient - successful projects will yield real emission reductions with

competitive costs .
 10’. Choose offset projects with
stringent standards
Any commonly accepted standard has to be
credible, financially efficient to administer and
effective in the goal of reducing atmospheric CO2

Stringent standards include:

• The Gold Standard
• Greenhouse Gases Protocol
• The International Organization for
Standardization (ISO) ISO14064
• The Voluntary Carbon Standard (VCS)
• The Climate, Community and Biodiversity
Standards (CCBS)
11. Integrate expenses for offsetting
into activities cost
• With limited resources it is better to offset fewer
of your emissions but invest in offset projects
that are of high quality.

• The new practice of offsetting carbon emissions is

a step towards slowing the growth of atmospheric
CO2.

• As there has been little consideration of the

atmospheric implications of our fossil fuel use in
the past, tying specific offsetting costs to these
activities reinforces a causal connection and
establishes a direct fiscal responsibility.
 12. Make a carbon
emissions inventory
While boundaries determine the edges of a carbon
footprint, the inventory defines what is contained inside
it.

Basic guidelines for preparing a CO2 inventory

• decide what is most relevant to core operations
• undertake a complete audit to justify whether emissions
are included
• be consistent so that there can be comparisons over time
• make the process transparent by noting methodologies
and important assumptions
• use the most precise calculations available.
 13. Aim for zero net
carbon emissions
We use carbon neutral as shorthand for zero net
impact on radiative climate forcing.

The steps involved were

(i) Identify boundaries for emission responsibility
to set a baseline for reporting
(ii) identify opportunities for reductions and
implementing them
(iii) choose a methodology to determine the
resulting emissions
(iv) select verified offsets to neutralize an agreed
amount of emissions.
 13’. Aim for zero net Zero
carbon emissions
Emissions

• Carbon Footprint of the

Global Carbon Project for 2006 (total ghg emissions
in CO2-equivalents)

– Core operation 130.3

– Hosted workshops 227.4
– Endorsed workshops 4.2
TOTAL: 362.0 tCO2-e (90% from travel)

• Aim to become a zero net emitter by the end of

2008
 end

Carbon Neutral homepage:

http://www.globalcarbonproject.org/carbonneutral