“Offsetting” an organisation’s carbon emissions by supporting external carbon reduction schemes (usually through an offsetting service provider) is becoming increasing popular. Low carbon – projects in Australia eg Bio gas reclamation, Wind farms, Solar power generation, and Forestry.
This practice allows a company to demonstrate its concern about its carbon emissions by supporting low-carbon projects elsewhere in the world, and by including an emissions cost on its balance sheet.
However, offsets should not be seen as a replacement for CO2 reduction -partly because the current market price of offsets is far lower than the real costs of CO2 to the environment, society and the economy, and partly because offsetting alone will not create the net overall reduction in CO2 emissions that we need to avert dangerous climate change.
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