Carbon Offset Projects

Carbon offset credits can be produced by a variety of activities that reduce GHG emissions or increase carbon sequestration. In most cases, these activities are undertaken as discrete “projects.’’ A carbon offset project, for example, may involve:

Renewable energy development (displacing fossil-fuel emissions from conventional power plants);

The capture and destruction of high-potency GHGs like methane, N2O, or HFCs; or

Avoided deforestation (which can both avoid the emission of the carbon stored in trees, as well as absorb additional carbon as trees grow).

Projects can range in scale from very small (e.g., reducing a few hundred tonnes of CO2e per year) to very large (e.g., millions of tonnes reduced per year). Carbon offset credits are also sometimes produced by large-scale “programs of activities,”[1] which aggregate together many similar small projects or coordinated efforts across entire jurisdictions (such as in the case of avoided deforestation).[2]

In many cases, carbon offset projects produce social and environmental benefits beyond just GHG reductions. Depending on the project type, these “co-benefits” can include improvements to community employment opportunities; enhanced air or water quality; biodiversity and habitat conservation; improved energy access; and better access to community health and education services. Many offset credit buyers seek projects that yield a broad range of benefits. Carbon offsets can thus be part of a comprehensive strategy for corporate social responsibility, combining efforts to address climate change with contributions to other public goods.

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