Carbon offsets

Frequently asked questions

As concern about the impact of climate change grows, a range of products is emerging to help companies, governments and the community offset their greenhouse gas (GHG) emissions.

Many companies have approached EPA Victoria for support and advice on how to navigate the emerging market in offsets, especially as part of their strategy to become a ‘carbon neutral’ business.

The information listed below will give companies an overview of carbon offsets and to provide helpful hints to navigate the constantly evolving offset marketplace. We welcome your feedback to assist in keeping this information accurate, up to date and relevant for businesses wishing to purchase offsets.

• What are the business benefits of carbon offsets?
• What is the difference between regulatory and voluntary carbon offset markets?
• Where do offsets fit withing a carbon management strategy?
• What are some of the main issues associated with offsets?
• What should I look for when buying a product?
• What are the main types of offsets on the market?
• What about green energy?
• What standards and guidance are available to businesses wishing to purchase offsets?
• Links to other resources

Carbon Offset Guide

EPA Victoria, in partnership with Global Sustainability at RMIT has developed a comprehensive directory of offset providers, called the Carbon Offset Guide.

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What are carbon offsets?

A carbon offset is an investment in a project or activity that reduces greenhouse gas (GHG) emissions or sequesters carbon from the atmosphere that is used to compensate for GHG emissions from your own activities.
Businesses may seek to offset the emissions of:

• their business as a whole;
• specific activities such as air travel; or
• lifecycle emissions associated with a business product or service.

Businesses can then purchase ‘credits’ from emission reduction or carbon sequestration activities occurring at another location to offset their calculated emissions.
Carbon offset products most typically involve projects which invest in:

• forestry activities
• energy efficiency projects
• the avoidance of methane emissions
• renewable energy

A range of carbon offset products are entering a largely unregulated market. In Australia, a number of mechanisms are currently being used to assure customers of the quality of offsets they are purchasing, including being accredited by the AGO’s ‘Greenhouse Friendly’ program, and the NSW Greenhouse Gas Abatement Scheme (GGAS).

A variety of quality standards are also emerging internationally, including the Clean Development Mechanism (CDM), the Voluntary Carbon Standard and the Gold Standard for voluntary emission reductions.

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Where can I get further assistance with managing my greenhouse gas (GHG) emissions?

For more help with carbon management, EPA Victoria has established the Carbon Innovators Network.

 

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