How does offsetting work?
Carbon offsetting is the voluntary act of mitigating Greenhouse Gas emissions (GHG). Carbon offsetting cancels the net contribution of an individual, company or organization to global climate change by supporting actions eliminating the production of an equal amount of GHG elsewhere. The offsetting entity has no legal binding, and it chooses to balance its carbon emissions voluntarily.
Carbon offsetting and a "carbon neutral" lifestyle have gained momentum mainly among western consumers who have become aware and concerned about the potentially negative effects of energy-intensive lifestyles and economies on the environment.
An offsetting scheme involves two sides: a GHG producer and a GHG reducer. The producer emits CO2, methane and other harmful heat-capturing substances through daily or periodic activities consuming fossil energy and raw materials, and producing waste. Since everyone engages in these normal, socially accepted actions – we are all GHG producers. Nevertheless – certain producers decide to take responsibility over their part of the problem, and purchase Verified Emission Reductions (VERs) from GHG reducers.
The Reducer eliminates GHG source emissions by taking specific actions that either minimizes the production of an EXISTING amount of gases, or that sequester atmospheric CO2. A reducer achieves GHG reduction through genuinely "additional" activities that would not be undertaken otherwise, and in an accountable and verifiable manner.
The transaction is usually mediated by a project developer - and a project verifier. A Developer generates a project profile, measures the baseline emission figures and the expected reduction, and present the project for evaluation on behalf of the reducer. An independent body evaluates the project, calculations and additional value – and certifies the expected cut in GHG as VERs.
