Use of Offsets in Pursuing Carbon Neutrality A carbon offset represents the reduction, avoidance, or sequestration that is used to compensate for emissions that occur elsewhere. Carbon offsets are measured as one metric tonne of carbon dioxide or greenhouse gas equivalent. In 1989, the first documented carbon offset was created when Applied Energy Services planted 52 million trees in Guatemala to offset carbon emissions from a coal-fired power station in Connecticut. In 1997, the importance of establishing a carbon offset market was formalized under the Kyoto Protocol as industrialized countries committed to reducing greenhouse gas emissions. Since then, the need for carbon offsets has grown as countries and corporations commit to corporate social responsibility and establish net-zero goals.
Different types of carbon offsets, referred to as offset project types, include the use of renewable energy, fuel switching, reforestation, afforestation, improved forest management, energy efficiency, emissions avoidance, and emission capture. Reliance on just one offset project type may not fill a particular need, as they vary significantly in risk and cost.
This presentation will introduce the different types of carbon offsets, carbon offset markets, and carbon offset registries. An assessment of the cost and advantages and disadvantages of each offset project type will be provided. The presentation will conclude with a discussion of criticisms and alternatives to the use of carbon offsets in the context of strategies to achieve net-zero goals.
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