The Drivers and Benefits of Offsetting

This article was published on www.icroa.org

The International Carbon Reduction & Offset Alliance ( ICROA) published a report which looks at the current demand for carbon offsetting and also observing what drives businesses to use carbon offsetting as one of  the solutions to climate change.

Understanding Business Leadership on Climate Action

More can be done to increase action on climate change and close the gap on the global goal of a two degree limit. There is a disconnect between where science says we need to be and how far the Paris Agreement will take us, and the voluntary carbon market is crucial in bridging that gap.

This report considers the current demand for carbon offsetting, what drives businesses to use it as one of its solutions to climate change, and what the benefits are.

Its findings were taken from responses to a survey developed by Imperial College London in consultation with the UNFCCC and ICROA, and conducted among respondents across a wide range of sectors, including private, public and non-profit / NGOs.

Putting it all together: recommendations

Based on the report’s key findings, the following recommendations can be put forward to further promote the uptake of offsetting as a solution to bridge the ambition gap on the global goal of a 2°C limit:

1. Carbon offset projects make a valuable contribution to the reduction of GHG emissions. Better recognition of this contribution would demonstrate the value to companies in meeting their climate goals and motivate more businesses to invest in voluntary offsetting. Additionally, this research shows that:

  • There is a positive correlation between knowledge of the voluntary carbon market and confidence in its effectiveness to reduce GHG emissions. A broader understanding of the market from the corporate world would help grow demand
  • Better awareness of the role of offsettingwithin the carbon management plans of climate leaders would also increase demand

2. Offset buyers should measure their return from investing in voluntary carbon offset projects. 49% of respondents in this survey said they have experienced tangible benefits from voluntary offsetting, though in most cases these benefits are not being measured. Better data on these benefits would help build the case for companies to take voluntary action

3. Demonstrating co-benefits, in addition to carbon mitigation, will increase the return on investment. In turn, this will increase the willingness to invest in voluntary offsetting


Work with us to reduce and offset your carbon emissions today! For more information click here or contact Nishanthi on Nishanthi.lambrichs@climateneutralgroup.com

Download the full report here.

The Peninsula Offsets Conferencing Carbon Footprint

Posted by: TourismTattler, 24 April 2017

With a drive and passion for saving the planet, The Peninsula All-Suite Hotel is dedicated to improving the health conditions and quality of life of families less privileged throughout South Africa by providing them with a simple cooking device – The Wonderbag. Header image credit: Climate Neutral Group.

The Wonderbag is a revolutionary non-electric heat-retention slow cooker that continues to cook food that has been brought to the boil for up to 12 hours without the use of additional fuel or electricity.  It provides communities with greener, safer and more reliable energy to cook their everyday meals.

As a solution to offset the carbon emissions generated through the Peninsula’s meeting rooms and conference facilities, caused by the need for lighting, cleaning, catering, heating, cooling and travelling, for every conference booked the Peninsula will donate Wonderbags to families in need through the Climate Neutral Groups Green Dreams project.

In doing so they are not only neutralising and reducing their carbon footprint but significantly contributing towards the life conditions of vulnerable communities across Africa, empowering them to progress by creating a safer and healthier environment.

Carbon Credits

The Wonderbag project is registered under the Verified Carbon Standard (VCS), thereby allowing companies to credibly offset their carbon emissions whilst making a sustainable social impact in South Africa. The Wonderbag’s environmental impact is measured and monitored by internal and external researchers and audited by independent auditors as required by the VCS guidelines.

The Peninsula All-suite Hotel is managed as a professional and environmentally conscious business and will continue to identify areas of opportunity to decrease their carbon footprint and bring forward change. They will stock the Wonderbag at the hotel to guests or conferencing delegates who wish to make a difference.

Would you also like to offer climate neutral conference facilities at your hotel? Click here for more information or contact Nishanthi Lambrichs at nishanthi.lambrichs@climateneutralgroup.com

Emissions offsetting: closing the main carbon tap of your business

By Danielle de Bruin, Programme Manager Mobility / Climate Neutral Group in The Netherlands

A car leasing company called us recently with a query around sustainability and transport. “We are not offsetting emissions because we think prevention is better” was one of the statements. Upon concluding our telephone conversation, during which we agreed on many points, one issue lingered on.

Prevention is better than offsetting: is that true? To find an answer, we will need to look at two things:

1. Can companies prevent climate change just by reducing their carbon emissions?

The answer is no. Reducing emissions is not enough. Of course, every little bit helps and lowering your overall emissions from your fuel consumption and energy use is something you should definitely do. This is however not where it ends.

After all, if your kitchen is flooding because you have left the tap open, you must close the tap and mop the floor. By reducing your company’s fuel and energy consumption, thus carbon footprint, you are closing your carbon emission tap only a little, say by up to 20%, if you are doing everything right.

The problem is that you can’t ignore the remaining 80%. A transition to electric transport could be a structural solution, but it could take many years before we reach that point. Do we have time to wait for this? I don’t think so. You can’t say: “I am sorry your kitchen is flooded. I will return next month to close the tap.”

2. Is there a difference between reducing emissions and offsetting?

The answer is no. Please allow me to explain why.

In the Netherlands, our infrastructure is largely based on fossil fuels. We fill up our cars with petrol and diesel and the bulk of our electricity is generated from coal. We all know how much effort it takes to change this: coal plants aren’t after all easily closed. In essence, we are all on the fossil fuel highway together, whilst making hairpin bends towards a more sustainable economy. Meanwhile, dozens of emerging markets around the world are developing rapidly, and are embarking on a similar path as the developed world a good few years ago. These countries will have to make the same hairpin bends in 20 years’ time to get rid their fossil fuels.

What is offsetting all about?

Offsetting means investing in sustainable energy projects in countries which are developing at a fast pace to prevent reliance on fossil fuels. One can, for instance, invest in wind turbines in India. With this, you are investing in clean, sustainable electricity grids from the word go – preventing emerging economies from becoming dependent on fossil fuels.

In other words, does offsetting equal reduction?

The answer is: yes. Offsetting is much more than closing the tap or mopping the floor. Offsetting your emissions means you are aware of the fact that greenhouse gases originate from several taps and that you have to close the largest, not just the most obvious. We essentially all benefit from offsetting.

The following day, I called the lease company and explained the above. The result? The firm in question is now one of our clean transport ambassadors in The Netherlands, and it is persuading their clients to offset their emissions. What about you?

The above is applicable to South Africa. Please contact us to see how your company can start reducing and offsetting its carbon emissions.