Why offsets make a difference to climate change and how to use them responsibly

The problem

Limited opportunities to directly reduce emissions presents a serious problem as it means that cuts in GHG emissions are not being made quickly enough. The most respected global scientific authority on climate change, the Intergovernmental Panel on Climate Change (IPCC) has stated that we need to reduce GHG emissions by around 60-70% if we are to address the issue and return emissions to save levels. With direct opportunities to reduce emissions only likely to achieve a 5% to 50% reduction we are in danger of failing to create the necessary savings.

The solution

The solution is two fold:

• Harness all opportunities available. GHG emissions are a global pollutant. This means that it does not matter where in the world a reduction in GHG emissions occurs. In the short term it is therefore important that we seek to implement all immediate opportunities available globally.
• Innovation. To address the problem it is clear that low carbon innovation is also necessary to ensure that affordable low carbon technical options emerge in the near future. This innovation is necessary to replace the high polluting forms of transport, energy and manufacturing that we currently have.

Offsetting an important part of the solution

The use of offsets created by robust green projects addresses both parts of the solution.

• Short-term: Offsets are independently verified units of GHG savings created by green projects. The green projects are not viable unless they are able to sell the offsets. The purchase of offsets therefore gives rise to a reduction in GHG emissions that would not have occurred otherwise thereby helping to harness all immediate GHG reduction opportunities available.
• Longer-term: Many offset projects are new technologies that will in the longer-term replace the older high polluting forms of manufacture and deliver the emission savings that we need if we are to effectively combat global climate change. In the short-term, as new entrant technologies, they find it difficult to compete with established manufacturing and rely on the ability to sell their emission savings as offsets if they are to survive. Our green cement project provides an important example of the type of low carbon innovation that will be necessary to address the climate change project.

In recognition of the role that offsets play, a number of respected entities are using offsets as part of their carbon neutrality strategies. These include: HSBC, News Corporation, Aviva, Sky, Toyota, Land Rover, Barclays, Yahoo, Google to name but a few.