Carbon emissions must be reduced by 80% by 2050 to avoid a temperature rise of more than 2 degrees Celsius. Businesses can compensate for their emissions, meet their carbon reduction goals and support the move to a low carbon economy by purchasing carbon offsets, delivering carbon-finance to essential renewable energy and forestry projects around the world. Carbon finance enables businesses to buy carbon credits and offset their emissions.
ECOHZ offers complementary sustainable solutions through our partner Natural Capital Partners.
How it works
Companies can buy carbon credits sold in metric tonnes of carbon dioxide equivaluent (tonnes CO2e).
Carbon offsetting help finance renewable energy, forestry and resource conservation projects. Projects that sell carbon credits include for example wind farms that replace fossil fuel, household device projects that reduce fuel requirements for stoves in low-income households, and forestry including conservation and reforestation for small-hold farmers. All projects have to show that they need financing from carbon credits to continue their work, be financially viable and achieve greenhouse gas reductions. The projects are validated, verified and monitored on a regular basis by independent third parties to show that they reduce greenhouse gas emissions.
Every carbon credit that is generated by a project has a unique identification number. When a business buys carbon credits to offset its emissions, the unique carbon credits are retired by third-party registries. This ensures that a business can claim and document that emission reduction and that the credit cannot be sold to anyone else.
A credible carbon management programme should always include measures to reduce greenhouse gas emissions internally, such as reducing the energy consumed, business travel and waste.
Offsetting one tonne of carbon with a carbon credit leads to one less tonne of carbon dioxide in the atmosphere. Carbon offsets give an immediate, measurable and cost-effective way to compensate for your emissions. Many projects also deliver essential Sustainable Impacts to communities and the environment, beyond the measured and monitored emission reductions. Imperial College London in 2014 found that each tonne of carbon reduced from offsetting has additional benefits worth USD 664.
Your offsets make renewable energy generation and resource conservation projects possible. It also helps you:
- reduce your risk;
- build your reputation;
- demonstrate leadership;
- meet your customers’ demands; and
- stand out from your competitors.