Carbon offsets explained

What are carbon offsets?

Carbon offsets are a bit difficult to explain. They are somewhat like a cause and effect or "if this, then that" type of subject. The first thing to understand: They are artificial benefits created to reward those that control naturally occurring carbon emission situations. Confused? Understandable. Ready to clear away some of the cobwebs?

In their simplest form, carbon offsets are financial vehicles or benefits purchased by or awarded to companies that reduce the volume of greenhouse gases they produce. However, there are currently six types of greenhouse gases that affect our environment. Carbon offsets are measured in metric tons of "carbon dioxide equivalents" produced. Are you clear now? Maybe not.

One carbon offset equals the reduction of one metric ton of carbon dioxide or its equivalent, if it's related to one of the other identified greenhouse gases. You are most certainly aware that many scientists have concluded that greenhouse gases are the strongest pollutant to our atmosphere.

Reducing the volume of greenhouse gases is valuable to every living thing on our planet. There is little argument surrounding this issue.

Yet it is easy to develop tunnel vision on this subject. For instance, many people believe that greenhouse gases are the cause of global warming, so often discussed in the 21st century. However, just as many scientific and environmental experts dispute this theory. Knowledgeable experts can factually show that the Earth undergoes global warming and cooling periods with absolute regularity.

To prove their point, they might ask you, "Exactly what industrial or fossil fuel use caused the last global warming period 500,000 years ago?" There weren't even any modern humans and certainly no industry, autos, or any other mechanized objects.

However, few argue that greenhouse gases damage the quality of our atmosphere. Particularly, carbon dioxide (CO2) gas, which is a life giver to plants, but a toxic killer to humans, needs to be controlled. The destruction of the world's rain forests and other large areas of growing plants, which are being replaced by construction for humans, is resulting in an imbalance of the carbon dioxide and oxygen volume.

Therefore, the carbon dioxide (and its equivalents) produced by humans burning fossil fuels and other processes must be reduced to improve this necessary balance.

What should we know about carbon offsets?

Carbon offsets reward or compensate those that take action to achieve this goal. The two major markets for carbon offsets:

1. Businesses and governments. They can "buy" carbon offsets to comply with maximums or caps set to control the level and volume of carbon dioxide they are permitted to emit. For example, in 2006, over $5 Billion of carbon offsets were "purchased," which equals roughly 1.6 billion metric tons of reduced carbon dioxide emissions.

2. Voluntary purchase by individuals, companies, or other entities. These carbon offsets, a much smaller market, are used to modify carbon emissions from everyday use of things like electricity, autos, air travel, or other energy uses that emit greenhouse gases.

Participating in projects that reduce carbon emissions will generate these carbon offsets. For example, using or developing renewable energy sources, such as wind power, biofuels, and hydropower, generate carbon offsets. There are other qualified activities that create carbon offsets.

For instance, projects that eliminate or destroy industrial or agricultural dangerous by-products or those that contain unwanted methane gases, also qualify for carbon offsets.

Carbon offsets are an outgrowth of the "carbon neutral" policy adopted by individuals, companies, and governments alike. The carbon neutral philosophy has been active for years. Yet, it's only recently that the conscious effort to limit introducing carbon-based pollutants into the environment has been embraced by individuals and business on a grand scale. Currently, it seems like everyone, individual, business, or government, is "going green" in all of their affairs.

Therefore, while we don't have to become personal experts on the financial and scientific computations to explain carbon offsets, we all should understand their basics and their reason for existence. At a minimum, understand that in our global efforts to protect our environment, carbon offsets are another tool to achieve our collective goal.

In this case, it is a financial vehicle or entity that can be "traded" to acknowledge efforts to reduce our carbon "footprint", limit greenhouse gas emissions, and reduce carbon dioxide.

Sure, carbon offsets are a bit more complex than using paper versus plastic, or turning down your thermostat. However, all of humanity needs to participate in protecting our environment for the effort to succeed. Carbon offsets are another useful tool to achieve that goal.

Many of us may never directly participate in this project, but those that do are helping just as we are when we conserve auto fuel or electricity.