What is Carbon Offsetting? A Guide to Carbon Offsetting for Businesses

Experts believe that reducing greenhouse gas emissions is the most crucial component in tackling climate change and keeping global warming under 1.5°C. For this reason, the global economy needs to undergo rapid and deep decarbonization. Faced with this challenge, businesses around the world are being called upon to reduce emissions in their operations and value chains. At the same time, companies need to invest in climate change mitigation to address this issue and help the global community reduce carbon emissions, achieving the goal of net zero emissions (Net Zero). This is where carbon offsets or carbon offsets come in.
This mechanism is both an immediate way for businesses and organizations to take responsibility for their uncontrolled emissions today and to contribute to achieving the United Nations Sustainable Development Goals.

The Carbon Offset – Carbon Offset eBook that ClimateParrner – a climate consulting group based in Munich, Germany provides an overview of carbon offsets, an important solution in the effort to reduce climate change. By supporting emission reduction projects, businesses and individuals can offset their carbon emissions and contribute to sustainable development.

A guide to carbon offsetting for businesses. Details can be found here.

The main content of the Carbon Offset Guide

•    The concept of carbon offsetting and its importance.

•    The operating mechanism of carbon offset projects.

•    Benefits of carbon offsets for the environment and community.

•    Quality standards ensure the effectiveness of carbon offsets.

Below is some key information the Ministry's document: Carbon Offset – Carbon Offset eBook

What is carbon offsetting?

It is a way for businesses and individuals to offset unavoidable emissions by supporting emission reduction projects elsewhere. Basically, you are funding the reduction of greenhouse gas (GHG) emissions in one place to offset your emissions in another.

Carbon offsetting is crucial to balance CO2 emissions into the environment. Currently, the amount of emissions generated is still greater than the amount offset. We need to promote carbon offset projects (such as using renewable energy, planting trees) to achieve balance (the scale points to the middle) and minimize negative impacts on the environment.

Why carbon offsetting?

Human activities have increased the amount of GHGs in the atmosphere, causing global warming and climate change. Carbon offsets allow companies to offset their hard-to-reduce emissions and contribute to the United Nations' sustainable development goals.

How do carbon offset projects work?

These projects are diverse, ranging the use of renewable energy, forest protection, afforestation to the direct capture of carbon the air. These projects not only benefit the environment but also the community, such as improving health, education and creating jobs.

What is the voluntary carbon market (VCM)?

This is where carbon credits are bought and sold. When a project reduces, avoids or removes one ton of carbon dioxide, it receives a carbon credit. Companies can purchase these credits to offset their emissions.

What are the quality standards in carbon offsetting?

Carbon offset projects must adhere to stringent standards to ensure that they truly benefit the environment. These standards include the exclusion of double ing, additionality, permanence, and regular verification by independent third parties.

What are the benefits of carbon offsets?

In addition to reducing GHG emissions, carbon offsets also help protect biodiversity, improve air and water quality, and promote sustainable development in developing ries.

In short, carbon offsetting is an important tool in the fight against climate change. It allows companies to take immediate action to reduce their environmental impact, while contributing to sustainable development globally.