In the global effort to combat climate change, carbon credits and offsets play a crucial role in mitigating carbon emissions.
In the global effort to combat climate change, carbon credits and offsets play a crucial role in mitigating carbon emissions. Put simply, humanity must both reduce emissions AND draw carbon dioxide from the atmosphere. When the stakes are this high, it is vitally important that key decision makers in the corporate sector understand the basics and some of the terminology.
What is a Carbon Credit?
A carbon credit, also known as a carbon offset, signifies the reduction or removal of one metric ton of carbon dioxide equivalent (tCO2e) from the atmosphere. It allows individuals and businesses to take responsibility for ‘neutralising’ their carbon footprint by purchasing credits equal to their emissions. In Australia, with one of the highest per capita carbon footprints globally, carbon offsetting is a vital tool in addressing the climate crisis.
Carbon offsets are generated through activities that prevent, reduce, or remove greenhouse gas (GHG) emissions. Each offset represents a tangible reduction in atmospheric carbon, contributing to environmental sustainability.
Accredited vs. Unaccredited Carbon Offset Projects
Accredited projects undergo rigorous assessment, verification, and certification under regulated or voluntary standards. Compliance with established processes and independent third-party verification ensures the reliability of accredited offsets. Unaccredited projects, such as revegetation, lacking such stringent reviews, are limited to the voluntary market but can still play a significant role in mitigating climate change.
Carbon Neutral's Certification Standards
Carbon Neutral operates within the Australian government's regulatory framework, licensed to generate and trade Australian Carbon Credit Units (ACCUs) and Certified Emission Reduction (CER) units under the Clean Development Mechanism (CDM). Their Yarra YarraBiodiversity Corridor reforestation project holds Gold Standard Foundation certification, a unique accreditation in Australia, ensuring rigorous auditing of carbon and a verified contribution to at least three of the United Nation’s Sustainable Development Goals.
Diverse Offset Options
Carbon Neutral offers a range of certified offsets, including ACCUs, CERs, and Gold Standard Verified Emission Reductions (VERs). While ACCUs and CERs adhere to established standards, Biodiverse Reforestation Carbon Offsets (BRCOs) follow Carbon Neutral's internal methodology, verified by independent auditors.
Reforestation carbon credits and offsets are pivotal tools in the fight against climate change. Global net zero carbon targets will not be achieved without removal of CO2 from the atmosphere. Trees pull CO2 out of the atmosphere as they grow. Carbon Neutral's commitment to diverse certification standards reflects a comprehensive approach, offering impactful solutions for businesses to meet ESG and net-zero goals. As we navigate the complexities of carbon markets, these instruments contribute to a sustainable, low-carbon future.
Interested in understanding your emissions contact Peter Taliangis at Carbon Neutral on 0431 417 345 or email Peter.Taliangis@carbonneutral.com.au or at https://www.carbonneutral.com.au
