What Are Voluntary Offsets?

Offsetting is the practice of managing the carbon that is emitted by investing in new environmental projects that reduce greenhouse gas (GHG) emissions. Voluntary offsets are “credits” that are purchased on the initiative of a business after analyzing (and verifying by third party) specific pollutants associated with their operations. Credits are based on the notion that there is a varying monetary value associated with each tonne of carbon dioxide equivalent either avoided or removed and stored by natural processes. Offsetting can help to effectively neutralize the impact of carbon that is emitted at one site by supporting projects that reduce emissions elsewhere.

How are offsets measured?

Emissions offsets, or carbon offsets, are usually quantified in metric tonnes (1000 kg) of carbon dioxide equivalents (CO2e). They can be used to counterbalance or 'offset' the impact of activities that generate greenhouse gases (GHG).

GHG emissions and offsets are typically quoted in terms of 'tonnes of CO2e'. CO2e stands for carbon dioxide equivalent, and is the standard measure of greenhouse gases emitted, or offset, converted into an amount of carbon dioxide that would have an equivalent effect on the atmosphere (some gases have a more powerful greenhouse effect than others). Some examples of activities and their corresponding emissions in Tonnes of CO2e are:

• Driving a small car for one year: 3.5 Tonnes CO2e
• Driving a large car for one year: 4.5 Tonnes CO2e

Source: Pembina Institute, http://www.onelesstonne.ca/sourcescalcs.pdf

Each greenhouse gas (GHG) has a different effect on global warming. Each gas has a different global warming potential, or GWP score which determines its relative strength in producing global warming effects, with CO2 having a score of 1. The GWP for Methane, for example is 23, making it 23 times as potent as CO2. GWPs for other some other potent GHGs range from 296 for NO2 to as high as 22,200 for Sulfur Hexafluoride.

How Are Offsets Created and Evaluated?

Proposed carbon offset projects must undergo a rigorous accreditation process subject to approval by the Canadian Standards Association - ISO14064 standards for greenhouse gas accounting. New projects must prove that they would not otherwise exist without funding from carbon offset credit purchase and have quantifiable carbon reduction value. Beyond these criteria, Summerhill Carbon screens projects for the social impact and benefit to neighbouring communities to ensure truly sustainable projects are selected and approved.

Summerhill Carbon sources and invests in Canadian projects that use industry-leading quantification methodologies and third party verification. Put simply, the carbon reductions that are claimed must be measurable, and must make a real impact by being additional to any reductions that would normally occur. The methods used to record and account for these reductions must stand up to examination by an accredited outside organization. We believe transparency of carbon offset projects by all parties assists in building confidence among offsetters and helps develop the voluntary carbon market.