Carbon Offset Markets
The voluntary carbon market (sometimes called VCM) allows businesses, organizations, and individuals to purchase carbon credits to offset their greenhouse gas
(GHG) emissions on a voluntary basis, outside of regulatory requirements. These carbon credits represent a verified reduction in emissions, often generated through projects like reforestation, renewable energy, or methane capture. The voluntary market enables participants to support sustainability efforts, meet corporate social responsibility goals, and take proactive steps in addressing climate change while contributing to the development of global carbon reduction initiatives.
Emissions Experts works with participants across the VCM ecosystem and supports clients both to monetize beneficial climate activity as well as to offset GHG emissions. For potential offset generators, we can assist with a single element of the process such as providing an initial evaluation of a specific economic opportunity. “Can I generate carbon credits? Is it financially vialbe?” We also offer full-lifecycle services in which we identify revenue opportunities, educate the client, introduce them to carbon registries, develop a new methodology (or leverage an existing one), hire a 3rd party verifier, oversee as they execute a project, receive issuance of carbon offsets, and broker those offsets into the market.
What is an offset?
An offset represents one metric tonne of CO2 or CO2 equivalent (CO2e) removed from the atmosphere or kept from entering the atmosphere. In many cases, offset project developers can reduce atmospheric GHG cheaper than a company can reduce or offset its own emissions. Offsets are verified by independent 3rd parties before they are issued by carbon registries (typically nonprofit organizations who establish the methodologies (step-by-step processes) that guide how an offset project must be managed. Three established US-based registries many companies look to for offsets are the American Carbon Registry (ACR), the Climate Action Reserve (CAR), and VERRA (formerly the Verified Carbon Standard or VCS). The Swiss registry known as Gold Standard is also well established. Many other registries have emerged as well as standards and verification frameworks such as the Canadian Standards Association (CSA).
How can we offset our emissions, reduce our footprint, or go carbon neutral?
These are questions many companies are still learning how to answer. In this case, Emissions Experts can simply provide offsets within a budget or provide a full service experience in which we educate clients on what an offset is, how one offset is different from another, what drives price, what fair market pricing is, how to transact, and how to choose offsets that will satisfy their unique set of stakeholders. Ultimately, the client will see a selection of offset products that fit their stakeholder requirements and budget. If needed, we can also calculate the client’s GHG emissions and delineate among scope 1 (direct GHG emissions), scope 2 (emissions purchased electricity, steam, heat, and cooling), and scope 3 (value chain emissions – your scope 3 emissions are someone else’s scope 1 or 2 emissions).