Renewable energy, climate change and carbon funding
Practical Action
Voluntary Carbon offsetting
Voluntary carbon offsetting involves companies or individuals paying to offset the emissions
associated with a specific action through the purchase of verified units of GHG emissions savings
(known as "offsets"). For example, you can offset a flight or a car journey with the emissions saved
in a renewable energy project.By buying offsets, the purchaser provides finance for green projects,
such as renewable energy or energy efficiency. Voluntary offsetting often will prioritise small scale
community based projects which have greater sustainable development benefit. See examples on
next page.
Companies who manage voluntary offsetting funds include3:
Carbonaided: http://www.carbonaided.com
The Climate Trust: http://www.climatetrust.org
CarbonNeutral: http://www.carbonneutral.com atmosfair: http://www.atmosfair.de
Climate Care: http://www.climatecare.org co2balance: http://www.co2balance.com
Carbon off-setting examples
Peru Micro Hydro - Annual Saving in GHG Emissions - 5,000
TCO2e 4
Micro hydro projects provide rural communities with access to a
clean and reliable energy source. Emission savings are created as
hydro power displaces other more carbon intensive fuels that
would otherwise be used to generate electricity in the area.
Sri Lankan Biogas Projects – Annual Savings in
GHG Emissions – 3,132 TCO2e4
The project has involved the introduction of over 60 new
biogas schemes, meeting 75 per cent of household
cooking needs. GHG emission savings are created as
the biogas displaces other more carbon intensive fuels.
Bangladesh Cook Stoves - Annual Saving in GHG Emissions -
5,000 TCO2e 4
The project has resulted in the installation of an additional 7,500
cook stoves installed and working. GHG emissions savings are
derived from more efficient use of biomass to supply energy needs
than traditional cooking methods.
3 The offsetting companies listed here have been recommended on reputable sources. However, Practical Action
recommend that renewable energy developers make a thorough check of offsetting companies for reputation and quality
standards of the offsetting arrangements.
4 Carbonaided
4