Carbon Offsetting:
Compensation and Neutralization
Project-Based Climate Solutions
An effective climate strategy for companies should always start with the reduction of all avoidable emissions. Companies can then complement this strategy by supporting high-quality climate projects that reduce or store carbon emissions. This way you can make an additional contribution to protecting the climate quickly and efficiently.
In the past, the goal was to “offset” or "compensate for" unavoidable emissions. Today the focus is on providing financial support to climate projects (contribution approach).
First Climate offers comprehensive solutions for the promotion of project-based climate measures with carbon credits.
Compensation and Neutralization
Under the Kyoto Protocol, carbon offsetting was defined as a method of compensating for greenhouse
gas emissions.
Today, in accordance with the quality initiatives active on the voluntary carbon market, we refer to climate action contributions or climate financing. Purchasing verified carbon credits from high-quality emission reduction projects or carbon removal projects channels urgently needed financial resources toward projects. Financing climate action with carbon credits is therefore a key instrument of global climate action.
Learn more about supporting climate action with carbon credits.
Energy Efficiency
An example of energy efficiency projects at household level is the spread of energy-efficient cooking stoves. Cooking over open fires is still widespread in many parts of the world. This is very inefficient and therefore associated with a multitude of problems: On the one hand, deforestation is advancing due to the high demand for firewood. On the other hand, there is a lot of harmful smoke that leads to serious eye, respiratory and lung diseases. Energy-efficient stoves achieve fuel savings of 30 to 50 percent and thus help to relieve the environment and improve people's living conditions.
Carbon Management and Net Zero
The proper management of unavoidable emissions plays an important role in the implementation of net-zero strategies. To achieve a net zero target, companies must reduce emissions. While working to achieve this target, companies can also optionally choose to support emission reductions or carbon removals with carbon credits. Once net zero is reached, any emissions left over can then be permanently bound by exclusively supporting carbon removal projects.
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