Types of offsets

What are the main types of offsets available?

There are a wide range of offset actions that reduce emissions, and all have particular issues which purchasers should be aware of. Broad categories for offsets are:

1. Forestry / Biosequestration
2. Methane projects
3. Renewable energy
4. Energy efficiency
5. Industrial gas
6. Mixed / Other

Forestry / Biosequestration

The most popular form of offsets in the voluntary market at present are foresty /  biosequestration projects. Trees soak up carbon, and thus can reduce the quantity of greenhouse gases (GHGs) in the atmosphere. The quality and aims of biosequestration offset products vary widely, and not all of these products meet the strict requirements necessary to be verified against offset standards. The permanence of these products requires particular attention. When appropriately planned, these forestry projects can have co-benefits, such as counteracting salinity, supporting local employment and improving biodiversity.

Forestry offsets can be divided into 3 broad categories:

• Afforestation (planting of new forests on lands that historically have not contained forests) or reforestation (planting of forests on lands which had been previously cleared of forest for another land use) where plantation forestry is employed.
• Afforestation or reforestation where mixed/native forestry is employed.
• Avoided deforestation, which is a relatively new area of carbon offseting.  This type of offsets need to specifically demonstrate additionality.

Methane projects

Methane is an important greenhouse gas, and a number of offset products are being sold that remove these from the atmosphere.  The products vary signifcantly and each type should be considered individually:

Methane - Livestock

Certain types of animals release methane, either directly or from manure.  A new form of offset product has arisen where these emissions can be reduced or collected, particularly where manure is stored in lagoons for future use as fertilizer.  These products are not widely available in the Australian market at this time.

Methane - Landfill

Decomposting matter emits a range of gases including methane.  Methane emitted from landfills can be captured and then flared into the atmosphere, or burnt to generate energy.  These offset products are often cheap and the technology is well-developed, but you may need to satisfy yourself that they are ‘additional’ to business as usual.

Methane - Coal

Methane emitted from coal mines is generally vented to ensure the safety of employees.  This can also be captured and then flared into the atmosphere, or burnt to generate energy.

Renewable energy

Renewable energy offsets can include wind, solar, biomass and other renewable energy sources, which help reduce reliance on fossil fuel sources. However there are questions over whether renewable energy offset products from some locations meet additionality criteria in more stringent offset standards.

Despite this, the use of renewable energy can play an important part in a carbon management strategy. For more information, go to ‘What about green power?’.

Energy efficiency

A number energy efficiency offset products are available, ranging from major upgrades of manufacturing processes to distribution of energy efficient products. As identified in a report by RMIT’s Global Sustainability Institute, "energy efficiency offset products have some perceived risks relating to the accuracy and reliability of baseline measurement and changes over time in energy use." However these projects can also have co-benefits of education and long-term behaviour change.

Industrial Gas

Offset products may target greenhouse gases associated with industrial processes, such as Hydroflurocarbons (HFCs) and Nitrous oxide (N2O).  These are presently less common in the Australian market than other types of offset products described above.  These can be cheap compared to other offset products, but may not provide other social or economic benefits.

Mixed / Other

Some offset products represent a mix of offset credits from various projects, and it is difficult to ascertain what kind of offsets are being obtained.  These are often cheaper than other offset products, but it should be remembered that you have no control over where and what kind of offsets are being purchased.

In addition, as the demand for greenhouse gas credits continues to grow. a number of offsets are being sold from new kinds of offset processes.  We will try to keep this web page up-to-date as these come onto the Australian market.

 

Top