What is carbon offsetting, why does it work and how do you get started with it as a business?
Calculate, offset and reduce your carbon footprint. These are the three steps we recommend for companies that want to take climate action. But what is carbon offsetting, why does it work and how do you get started? We cover all that in this article.
What are carbon credits?
A carbon credit is a unit that represents that one ton of carbon dioxide equivalent (tCO2e) has been removed from the atmosphere. CO2 equivalent is a collective term for all different types of greenhouse gases. When we talk about CO2, we really mean CO2e, which also includes other forms of greenhouse gases such as methane, nitrous oxide and water vapor.
What is carbon offsetting?
Carbon offsetting means that you buy an amount of carbon credits corresponding to your CO2 emissions, e.g. when running a business.
Once you have an overview of your total carbon footprint, we believe that the first thing you should do is carbon offset. Next, you should start reducing your emissions. This way, you take full responsibility for your carbon footprint when running your business.
Another important point is that carbon offsetting is not just about cleaning your own path. Many of the projects that generate carbon credits also help the people who are most vulnerable to the effects of climate change.
Why carbon offsetting is needed
Global warming is a global problem. This means that scientifically it doesn't matter where we reduce the amount of greenhouse gas emissions. As long as the total amount of emissions is reduced, it doesn't matter if it happens in Denmark or Tanzania.
The global carbon budget indicates that everyone and anyone must reduce CO2 emissions now! There are now only a few years left to reduce our emissions before catastrophic consequences of global warming will ravage the world. A fundamental problem with this is that the targets that have been set by countries and companies around the world do not meet a level of reductions that will adequately stop warming.
If the level of ambition is not raised, we simply will not reach it. This is where carbon offsetting and climate projects are a crucial solution, where there are still many low-hanging fruits. This is because the vast majority of climate projects are in developing countries where there is simply a lack of funding to create the necessary CO2 reductions.
Low-hanging fruit
We are frontrunners in the climate fight here in Denmark. We still have some way to go before we reach our climate goals - but we have actually come so far that many of the reduction measures we can take in Denmark are far less effective than they have been. On the other hand, many other countries, especially developing countries, are still very far from being at the same level.
To put it in perspective, a third of the world's population still cook over open fires. Their total carbon footprint is far lower than the average Dane, but it is extremely cheap to remove the majority of their carbon footprint while significantly improving their living conditions. Through verified and controlled climate projects, you can help these people significantly and remove CO2 at the same time. That's what you call a win-win.
It's not enough to reduce
Climaider helps companies and individuals identify what actions they can take to reduce their carbon footprint. But we are also aware that it is impossible to become 100% carbon neutral.
Everything we do has a carbon footprint, and you can't run away from that. You can and must do a lot to reduce it, but there is also a limit to how much you can do. Yet the climate crisis has reached such a critical point that there is no time to wait. If the world doesn't halve current CO2 emissions by 2030, things look very bleak.
This is precisely why we believe that climate projects are a crucial climate solution that should be used by many more companies. If you are already far along in your green transition, you can even offset your carbon footprint and make a real difference in the fight against global warming.
Consumers demand climate action
Consumers are increasingly demanding products that align with their values on climate and the environment. In fact, over 90% of European consumers aged 16-65 believe it is fundamentally important that companies take climate action - and 50% of them are already aware of the carbon footprint of the products they buy. This is especially true in the food and cosmetics categories. Therefore, taking responsibility for the carbon footprint of your company's activities is already crucial, both from an ethical and a business standpoint.
We can help your business with carbon offsetting
If you want to learn more about how you can support climate projects that offset the carbon footprint of your company's activities, email us at oskar@climaider.com. We'll find a solution that fits your business and your needs.
