While there are many attributes that an offset should have to ensure that it is environmentally credible, additionality is most important. Since an offset is being used to compensate or neutralize emissions elsewhere, it is essential that the reduction used as an offset would not have happened anyway. Otherwise there will be no net reduction in emissions. In other words, the seller of the offset should be able to prove that the emission reduction would not have occurred if the offsetting payment (in aggregate across the project) had not taken place. This can be done, for example, by showing that the extra revenue made project returns sufficiently attractive or enabled external financing that would not otherwise have been available.
- Understand what offsets are
- Decide how many offsets you need
- Develop a tailored offset strategy
- Decide how you plan to buy offsets
- Choose the offset standard that best suits you
- Undertake due diligence on projects
- Talk to different sellers
- Ensure that offsets are retired on a credible GHG registry
- Be transparent about your offset purchases
- Review your approach to offsetting on a regular basis
See full Report, in pdf. format.
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