Choosing an offset

What should I look for when buying a product?

Before investigating offsets

• Have you considered cost-effective avoidance and reduction opportunities within your business? Offset purchases should occur as part of a business’ comprehensive carbon management strategy based on the Carbon Management Principles
• What are your  primary objectives in purchasing offsets?
• What level of certainty do you need so that you can credibly claim that you have achieved your carbon management objectives (eg. going carbon neutral)? Is reputational risk an issue?
• How constrained are you by offset costs? At present, offsets can range from less than $10 up to more than $50 per tonne of greenhouse gas equivalents
• Do you have a preference for a certain type of project (e.g. renewable energy versus biosequestration), or project location (domestic versus international)? Are you looking for co-benefits from the projects such as biodiversity benefits from some forestry projects or public or staff education benefits from the installation of new energy efficient technologies?

When investigating offset products

• Is it clear what you are being offered? For example, does the offset provider specify the source of the emissions reduction? Can you select credits from a specific project as opposed to a credit arising from an unspecified portfolio of projects?
• Can the offset provider demonstrate that the offsets meet your quality requirements? For example, would the project(s) have happened without the GHG offset market? Can they demonstrate that the offsets are not sold to multiple-buyers?
• Does the offset provider create offset credits in line with a recognised standard or regulation? Have the offsets been validated by a credible third party?
• Does the offset provider sell offsets that will accrue in the future? If so, how long into the future, and can they explain why they need to "forward sell" the offsets? How will they compensate or make good if the project doesn’t deliver the expected emissions reductions?
• Does the provider give additional information to buyers about climate change and the impact of GHG emissions? Does the provider offer information about other carbon management actions, such as avoiding and reducing your organisation’s own emissions?

After purchasing offsets

• Continually review you carbon management strategy. In most instances, onsite reductions are the most cost effective way to achieve your business goals or targets.
• Communicate your actions. Let your staff, stakeholders and customers know the steps you took to purchase your offsets. Be transparent about which offsets you purchased and the standards to which they were accredited.

These tips have been provided in an EPA Factsheet, Tips for purchasing carbon offsets.

The questions on this page are adapted from Clean Air-Cool Planet’s Consumer’s Guide to Retail Carbon Offset Providers

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