All companies will have to take responsibility for their carbon footprint and carbon offsetting projects are becoming their strong ally. 

A business may have already identified its emissions sources, calculated its GHG emissions, and implemented strict reduction measures…yet, hard-to-abate emissions persist. They are emissions that can neither be reduced nor prevented. 

Though there are technologies currently being developed to further help in companies’ carbon reduction goals, immediate actions are necessary to compensate for unabated footprint. 

If there’s something that can be done right now to that end, it’s investing in carbon offset projects. 

If done in the right way… carbon offsetting projects can have several real positive impacts on the climate. Many can even support sustainable development on site. 

But if implemented improperly… they deliver insufficient results or may serve as a cheap alternative to more elaborate and real changes companies need. 

So, what are carbon offset projects or how do they work? What are some types of carbon offsetting projects to consider? 

You’ll know in detail as we explain them below while also introducing to you the best carbon offset programs you may consider. 

What are Carbon Offsetting Projects?

Carbon offset projects are verified activities of environmental conservation or protection which reduce, avoid, or remove greenhouse gas (GHG) emissions from the atmosphere, helping to mitigate climate change. 

As Article 12 of the Kyoto Protocol says, governments and companies may fund carbon offset projects as part of their emission reduction strategies as well as to promote sustainable development in developing countries. This financial support enables project activities that reduce emissions. 

To put it another way, financing carbon offsetting projects compensates for CO2 emissions that were already in the atmosphere elsewhere.

Each tonne of emissions reduced by a project creates one carbon offset or carbon credit. Both individuals and companies can invest in these projects directly or buy the carbon credits to offset their own carbon footprints.

Carbon offset credits are tradeable on the market and face controversy in how easy they are to attain. 

Yet, the concept is the same: a company is more or less investing in a carbon offset project to balance their own emissions.

What is the best way to offset carbon?

Carbon offset projects involve different efforts or innovations in climate action. Some are into protecting ecosystems over afforestation of new, or reforestation of degraded land. Others involve rolling out clean energy technologies or renewable energy sources. 

Other schemes work by soaking up CO2 directly from the air by planting trees.

Carbon offset schemes vary widely when it comes to cost. But a fairly typical fee would be around $12 for each tonne of carbon offset. At this price, a typical family would pay around $45 to offset a year’s worth of gas and electricity use.

Some people may want to offset their entire carbon emissions while others seek to balance the footprint of their specific activity such as travel. 

To do that, the traveler checks a carbon offset program and uses its online tools to determine the emissions of its travel and then buy the offsets to reduce emissions elsewhere. By paying the offset company, the emitter flight’s become “carbon neutral”.

But carbon offsetting projects don’t just slash emissions. They can also achieve other benefits such as creating jobs, improving education, and enhancing living conditions in local communities. 

Types Of Carbon Offsetting Projects

As mentioned, there are various ways of offsetting carbon emissions.  

Specifically speaking, there are over a hundred projects that can offset emissions. But broadly speaking, they can be categorized into these four major types. 

Forestry and Conservation

Reforestation and nature conservation have been the most popular offsetting schemes. Carbon offset credits are created based on either the carbon captured or the carbon avoided from entering the atmosphere by protecting trees. 

Common examples of these offset projects are reforesting the Amazon rainforests and replanting mangroves.

As a nature-based climate collusion, forestry projects may not be the cheapest option. But they are often selected for the many benefits outside of the carbon offset credits they bring. E.g. Protecting ecosystems, wildlife, and social heritage is important for companies offsetting their carbon emissions.

But what could be the problem with carbon offsets generated by these projects?

Critiques say that the corresponding credits forestry projects create are questionable. How could that be? It’s hard to determine how much carbon is reduced with these offset projects.

But the tide has turned because of the new technologies that emerge that measure carbon stored in forest trees. Methods of sustainable reforestation efforts and getting their benefits have improved a lot.  

Renewable Energy

Renewable energy offsets are from projects that involve installing solar, wind, or hydro sites across the globe. 

If you decide to invest in these projects, you are helping boost the level of renewable energy available on the grid. 

Not to mention that you’re also decreasing the reliance on fossil fuels. 

After all, renewable energy’s goal has always been decarbonization. 

As of 2022, about 30% of the world’s electricity comes from renewables, including hydropower, solar and wind. And the demand for renewables is also growing fast. 

Carbon offsetting projects involving renewables have been prevalent and so common in different countries. Take the case of India, for instance. Believe it or not, this super emitter has seen the fastest growth in renewable energy across all big economies, receiving billions of dollars in investment. 

Community Projects/Energy Efficiency

Community projects usually involve application of energy efficiency technologies to less- or undeveloped communities. These carbon offset projects often have many other benefits than just for offsetting purposes. 

They don’t only help make local communities or regions more sustainable. They can also provide empowerment that can help lift communities out of poverty. 

Water purifier manufacture and distribution is a common example of this project. It can also be providing clean drinking water to communities by making or fixing boreholes. 

Efficient cookstoves have also been popular recently with the likes of EKI Energy investing in them. These projects are often found in Africa and India where poor local communities are still using fire woods to cook food.

So how do these projects reduce carbon emissions? 

Families don’t have to burn firewood to boil water or cook their food. In effect, this protects their local forests and reduces indoor air pollution. Not to mention the empowerment provided to women who often supervise these community projects. 

Waste to Energy Projects

This last type of carbon offsetting projects typically involves methane capture in industrial facilities. The harmful gas is then converted into electricity. 

Sometimes, this project means capturing landfill gas or agricultural waste in smaller regions. 

For example, building and maintaining biogas digesters to turn waste into clean and sustainable energy doesn’t only cut waste but also slash GHG emissions. It reduces methane released into the air while also protecting the local forests.

With all these various types of carbon offset projects, you are perhaps asking which ones of them are the best pick? Well, each project is unique and is developed for certain reasons.

A carbon offset project is an initiative developed to reduce actual GHG emissions and it can be in any sector, agricultural to industrial. On the other hand, a carbon offset program refers to a set of standards made by a company or organization to measure, regulate, and review carbon offset projects.

So, the right question would be what are the best carbon offset programs? 

What Are The Best Carbon Offset Programs?

Both businesses and individuals use carbon offset programs to look for the right offset project to invest in. These programs offer different carbon offset projects that you can select to support. 

So, how do you know you got the best carbon offset program to trust? 

We’ll give you a couple of top options below. The selection is based on certain things such as transparency, the projects’ carbon offset quality, types or range of projects in offering, among others. 

One more vital criterion is third-party verification because it’s critical to validating that the project is really reducing carbon emissions. Plus, of course, adherence to high social and environmental integrity standards is also considered. 

Best Carbon Offset Programs – Top 4 Picks

Native Energy

Making it on the top spot is Native Energy, founded around the 2000s. Apparently, it’s operating in the carbon offset space for quite some time. Being certified as a B Corp and Public Benefit Corp tells us that it meets high standards for social and environmental programs.

Native Energy is also transparent about the quality of the carbon offsets their project offering produces. 

Best of all, the carbon offset program offers a broad range of projects for both individuals and companies. They cover the following project types:

Clean water
Nature-based
On-farm
Regenerative AG
Removals (CDR)/Drawdown
Renewable energy

The program also has specific calculators in place that small businesses can use. For instance, small companies can use its travel, freight, or even calculators to measure emissions, and to offset either by dollar or by tons of CO2. 

In the same way, individuals also have tools on their disposal when it comes to calculating travel, household, or activity footprint. The results of the calculation will then determine the cost needed to offset the footprint. The money paid by the polluter would then be invested into a specific carbon offset project they pick. 

To date, the program manages to achieve these results:

The confidence of their clients also lies in the fact that the carbon offsets they have are verified by the top carbon standards, namely: Gold Standard, Verra, Climate Action Reserve, and American Carbon Registry.

3Degrees

If you’re a business owner, then this carbon offset program could be your best selection. 3Degrees’ carbon offset projects are specifically meant to help businesses and utilities decarbonize their operations.

Just like Native Energy, 3Degrees is also a certified B Corp, transparent, and with third-party verified projects. However, it doesn’t have projects available for individuals, so take note of that cons. 

The program came about in 2007, believing that businesses have a key role to play in fighting the climate crisis. For over 15 years, 3Degrees has been a pioneer in providing climate solutions. Within that time period, the company has achieved these results:

The company also deals with many other carbon offset projects apart from nature-based solutions. They mostly include landfill gas capture projects.

Setting aside its proven track record in the space, what makes 3Degrees stand out from other best carbon offset programs are these points:

Quality Standards: the carbon offset program works with all four of the major voluntary carbon offset standards as the case with Native Energy. 3Degrees further ensures that each project adheres to approved protocols.

Tailored Solutions: 3Degrees help companies build a portfolio of high-quality projects that are relevant to their business and stakeholders.

Portfolio Management: holistic approach to managing portfolio while working with clients to balance immediate need with long-term goals.

Here are the specific offset projects that 3Degrees has under its hat:

Agricultural methane capture/combustion
Wind power
Forest management
Solar power
Oil recycling
Energy efficiency
Emission reduction
Biogas
Landfill gas methane capture and destruction

Terrapass

Getting third place on the best carbon offset programs is Terrapass. It makes carbon offsetting easy for both corporates and individuals through its monthly subscription model. 

It has pre-packaged bundles and monthly subscription services that make it easy for emitters to choose to address their footprint. What this means is that it would be very easy for you to offset your footprint on a monthly basis. 

The company was launched in 2004 originally to help individual people reduce their travel’s carbon footprint. But after its portfolio has grown to include energy consumption, the program has helped 1,000+ entities and individuals pay for their climate impact. 

Same with the previous programs, Terrapass also provides useful carbon tools or calculators for individuals, businesses, and even special events! The program covers these carbon offset projects:

Landfill gas capture
Abandoned coal mines methane capture
Wind power
Forestry
Farm power
Water Restoration Certificate

Those offset projects are verified by the most-recognized carbon standards. So, why pick Terrapass? 

Here’s why…

myclimate

Making it on the last list of our best carbon offset programs is myclimate. It’s a great option for multiple environmental impacts because of its extensive and diverse carbon offset projects. These include:

Biogas
Biomass
Efficient cookstoves
Energy efficiency
Hydropower
Land use and forestry
Solar waste management and compost
Water (purification and saving)
Wind

Founded in Switzerland in 2002, myclimate is an award-winning carbon offset program that covers 170+ projects in 45+ countries worldwide. Its other achievements in many aspects are outstanding and involve more than just cutting emissions. 

In particular, it financed 13 million tonnes of carbon reduction, planted over 18 million trees, and installed more than 775,000 efficient cookstoves. 

It also has easy-to-use carbon footprint calculators for these areas: 

Finally, myclimate serves a very wide range of clients from individuals to nonprofits, and companies of every size. You can be confident that your money serves its value by going to the project of your choice, with its carbon reductions verified by these offset quality standards:

Gold Standard
Plan Vivo
Verra 
Agencies of the Swiss Government

Best Carbon Offset Programs For Individuals

Needless to say, there are a lot more programs available for carbon offsetting projects. And their number continues to grow as the world is in urgent need to decarbonize. 

But not all of them have the same results or standards they adhere to. The top four options identified are a good place to start and narrow down your choices. And if you’re particularly looking for the best carbon offset programs for individuals, then just take out 3Degrees from the list of options. 

The remaining three programs work best for your individual or personal carbon offsetting needs. The carbon offset projects they offer are equally diverse.

Just remember that each project is unique so check out their details before you bet your money into it. And before anything else, see to it that the program you pick meets rigorous offsetting standards and is verified by a third party. 

Lastly, you can also think about whether you want a program that supports projects in your locality or in international regions. 

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ExxonMobil’s move to end its 14-year, multi-million-dollar support for research into making fuel from algae also ended years of funding for projects at the Colorado School of Mines and the National Renewable Energy Laboratory (NREL).

Exxon $350 Million Algae Support 

Oil giant’s backing for research into developing high-yield algae at Mines was stopped at the end of last year. While the project meant to create a computer model to test farm-scale biofuel productivity will halt this spring. 

Exxon provided millions of dollars in the search and development of fast-growing algae. Since 2009, it has pumped $350 million on projects developing a fuel from the lipids in algae.

The oil giant touted its research in the public through social media, video ads, and print ads. The company has even predicted to produce 10,000 barrels of biofuels by 2025.

Why Stop the Funding

Exxon’s research efforts, however, drew criticism from environmentalists, claiming that the project was just greenwashing. It misleads information to make the oil firm look environmentally friendly.

At the end of 2022, Exxon began to unwind its support for algae. It started to cut funding to Viridos Inc., a California biotech company that is Exxon’s key partner in algae fuel development. Then it concludes the Mines and NREL projects.

Remarking on this, a representative stated in an email:

“Algae still has real promise as a renewable source of fuel, but it has not yet reached a level we believe is necessary to achieve the commercial and global scale needed to economically replace existing sources of energy.” 

A total of 8 years of research has been conducted at Mines lab that’s now over, but not done. And so the partnership with the Posewitz Research Group to search for fast-growing algae has ended. 

Fast-growing algae are aquatic, microscopic, organisms that live through photosynthesis like land-based plants.

To develop algae fuels, two major challenges are growing enough algae or biomass and increasing their lipid content. Posewitz’s lab has “focused on maximizing bio-productivity.”

Posewitz and Exxon have been searching for hearty algae in the hottest, saltiest bodies of water such as the Great Salt Lake and the Gulf of Mexico.

“The experimental design was basically ‘The Hunger Games.’ wherein a bucket of water is put in a bioreactor in the lab in a high-heat, high-salt, high-light environment to see which organism survived best.”

The winner was P. celeri, which can double its biomass in as fast as two hours, 20% to 75% faster than other cell lines. This doubling time is critical to establish a productive level of biomass and to recover from process upsets.

As amazing as P. celeri is, it’s not a good lipid producer. Viridos has been working on increasing the lipid content of test algae. 

Shifting Focus to Other Tech 

Exxon shifts its focus to technologies that can be scaled up faster, such as carbon capture and hydrogen. This decision was further inspired by government subsidies for these technologies under the administration’s Inflation Reduction Act.

Exxon’s business means making decisions around the commercial viability of R&D projects. As such, a spokesperson noted:

“We announced plans to invest $17 billion in lower emission initiatives from 2022 to 2027. This includes investments in carbon capture and storage, hydrogen and other biofuels.”

Despite losing the support from the oil giant, Posewitz said his lab will continue its work, including the genetic engineering of P. celeri, with other funding.

Now for Exxon’s NREL project, it was designed to run 3 years, concluding this spring with results published in the near future.

The funding for the project is part of a $100 million, 10-year agreement between Exxon and NREL made in 2019 for various projects. That is the largest financial commitment to the lab, outside the government.

NREL has been doing research on algal fuels for over a decade. It will continue its investigation into developing algae strains, cultivation, carbon capture, and product conversion technology for market adoption. 

Most of the work is funded by the U.S. Department of Energy’s Bioenergy Technologies Office. 

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Citibank unveiled targets for reducing emissions linked to loans to coal mining, steel, auto, and real estate clients by 2030, while revealing its plan to buy carbon credits for its own operations. 

Banks around the world are pledging to reduce carbon emissions for the sectors that emit the most carbon. And last year, Citi announced goals for its energy and power portfolios. The American major bank updated its plan to achieve net zero emissions by 2050. 

Citibank said its clients need to use carbon credits while it will buy the credits to offset its own emissions. 

Ending Fossil Fuel Financing

Fossil fuel financing from the world’s largest banks has amounted to $4.6 trillion in the 6 years since the 2015 Paris Agreement. 

Some lenders are restricting financing for the dirtiest energy projects while others opted to totally end fossil fuel financing.  

But environmentalists say they are not acting fast enough to prevent global temperatures from going beyond 1.5 degrees Celsius above pre-industrial times. It’s the level required to avoid the worst effects of climate change.

While other banks are tightening their climate lending policies in line with the Paris Accord, most of the large U.S. lenders continue to back expansion in the sector.

In fact, last year, three large American banks which include Citigroup slammed shareholders’ proposals to align lending with climate goals. The other two banks are Wells Fargo and Bank of America.

Citibank came second to JPMorgan Chase in fossil fuel funding from 2016 to 2021, with $285 billion worth of investment.

Citibank Carbon Emissions and Targets

Banks have different exposures to industries and their clients’ emissions disclosures are unclear and incomplete. So it’s quite hard to judge the lender’s plans for sectoral emissions reductions.  

Add to this that banks are using varying base years for their targets. Some of them include underwriting while others don’t like Citibank.

Citi pledges to reach net zero emissions for operations by 2030 and net zero for financing by 2050. For its sectoral targets, the bank aims to cut absolute emissions from lending with these targets:

90% by 2030 from a 2021 baseline in thermal coal mining 
31% intensity of emissions for auto manufacturing
41% for North American commercial real estate 

Here is Citi’s 2030 emissions targets by sector.

CITI 2030 EMISSIONS REDUCTION TARGETS

The bank said it will reveal more detail on steel emissions and alignment with the Paris Agreement in the future. 

Its targets cover direct financing but don’t include the underwriting of stock and bonds – called facilitated emissions. Citi said it will include it if the agreed methodology for all banks is out. 

The bank’s emissions in 2021 for energy portfolio significantly declined versus 2020 but were the same for power. Comparison analysis between the sectors is not simple as financed emissions are constantly changing year-on-year. 

Moreover, the bank stated in its climate financial disclosure report that:

“Climate-related reporting continues to fall short of the necessary quality, quantity and consistency to permit comparability across clients, industries and sectors, which underscores the necessity of client-level engagement.”

So, the lender’s approach is not to divest but to engage with clients. But for some campaign groups, the bank’s sectoral updates are disappointing when compared to European banks. 

For example, Britain’s largest domestic bank Lloyds Bank decided to stop direct financing to fossil fuel projects. The finance giant said that it will not fund any new gas, oil, and coal projects to support the UK’s transition to a sustainable, low-carbon economy.

To reach its net zero emissions, Citibank intends to use carbon credits as one way to tackle unavoidable emissions.

Carbon Credits for Net Zero

Though the bank said it doesn’t plan to buy carbon credits to reach interim targets, it says some activities may not achieve absolute zero emissions by 2050. 

So, Citibank looks to buy voluntary carbon credits for its 2030 net zero targets. The bank also said that some sectoral clients will need to use the credits to also achieve their absolute net zero emissions by 2050.

The lender will focus on credits that are additional, certified and restricted to carbon removals. But since removal tech remains costly at the present, the bank goes for nature-based removal credits. 

For its operational emissions, Citibank sees the potential of carbon credits to address its Scope 1 emissions for 2022 and beyond. The bank is buying the credits to complement its 100% renewable electricity commitment. 

As Citi approaches its 2030 operational target, it will continue to assess carbon removal credits to offset any remaining emissions.

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Planetary Technologies has published a measurement, reporting, and verification (MRV) protocol for ocean-based carbon removals, hoping it provides a major boost to the market of marine carbon removals.

Planetary is also inviting experts to review its MRV protocol, available at its GitHub account, and provide their input. The tech firm welcomes comments until April 15, 2023. 

MRV Explained

Measurement, Reporting, and Verification (MRV) refers to the process to measure the number of carbon emissions reduced by a certain mitigation activity over a period of time and report the results to an accredited third party. This particularly includes reducing emissions from deforestation and forest degradation.

The third party then verifies the reported findings so they can be certified and the corresponding carbon credits can be issued.   

One credit is equivalent to one ton of reduced emissions expressed in tons of CO2 equivalent (tCO2eq). The credits are from the results the World Bank pays for through specific results-based climate financing arrangements such as the Emissions Reduction Payment Agreements (ERPAs).

Carbon credits are also basic units traded in the carbon markets used by countries to meet their Nationally Determined Contributions (NDCs) under the Paris Agreement. Companies and individuals are also using them to offset their own footprint or simply support environmental projects.

MRV serves as the key to showing progress on climate goals and attracting more investments into the sector. 

At the very start, the carbon reductions project should have baseline data against which performance is measured periodically. The assumptions upon which baselines are established and accounting methods adopted to measure the reductions vary by sector and scale.

At the end, standard setters set the requirements that those baselines and mitigation activities must meet. This is to ensure that the project follows the highest accounting standards for reliable results. 

In gist, MRV seeks to prove that activity actually reduced or removed harmful GHG emissions. The goal is to ensure that mitigation actions can be converted into credits with monetary value. 

Planetary Ocean CDR MRV Protocol

Planetary’s MRV is the world’s first Ocean Carbon Dioxide Removal (CDR) protocol designed to ensure accuracy and transparency of Ocean Alkalinity Enhancement (OAE) projects to deliver carbon removals. 

Since the summer of 2022, the firm has been testing its technology in the UK, Canada and the US. It says it can remove up to 1 million tonnes of CO2 by 2028 while restoring coastal and marine ecosystems.

Co-founder and CEO of Planetary, Mike Kelland, said:

“To address climate change, we need to be ambitious with our approach. For the safety of our planet and people, we need to remove billions of tonnes of carbon dioxide from the air. At the same time, we want to continue safely so we will continue at low levels and grow as we increase our confidence in the safety and efficacy of our approach.”

Planetary’s open-source protocol provides guidelines for developing ocean CDR projects, including how to calculate carbon removal and estimate lifetime storage. It also includes a standardized methodology used to assess the CDR performance, increasing trust and thus, climate finance. 

Just last month, a team of MIT researchers unveiled a new way of capturing CO2 from seawater, not air. Their novel tech uses less energy and cheaper cost than existing direct air capture methods.

What makes Planetary MRV unique is its conservative holdback that allows carbon removal credits sold as the protocol evolves. And to further improve its protocol, the company stated on its website that it’s working on including these key issues:      

Proper representation of CDR accomplished through the capture of biological CO2 entrained in wastewater
An iterative approach to refining the holdback factor
Alkalinity loss due to particle dissolution below the (seasonally varying) mixed layer
Alkalinity loss due to subduction of alkalized water from the (seasonally varying) mixed layer
Alkalinity loss by reaction with acids other than carbonic in the wastewater 
Alkalinity loss due to particle ingestion at various levels in the ocean food web

Boosting Ocean-based CDR Projects

The company’s goal is to ramp up the development and adoption of ocean-based CDR projects with its OAE tech process. 

Schematic showing the layout of Planetary’s monitoring program, the measurements made at each location, and the resulting parameters required for calculation of CDRgross. TSS refers to total suspended solids.

Planetary’s method adds an alkaline substance to seawater, lowering its acidity in the surrounding marine environment. This then converts the dissolved CO2 into a mineral salt, which will remain in that state for 100,000 years.

As the Planetary’s tech reduces the CO2 in the oceans, it can suck in more atmospheric CO2, as part of the natural carbon concentration balancing process.

Knowing the exact volume of this process is where the MRV protocol becomes crucial to ensuring that it works. As such, it also makes sure that the issued carbon removal credits are real and verified. 

Planetary’s new MRV for ocean carbon removal has been reviewed by Shopify, one of its supporters in testing the tech. The giant e-commerce’s sustainability head said that OAE can remove and capture gigatonnes of CO2 each year at a low cost. She added:

“Planetary is driving the OAE pathway forward, and their decision to open source their MRV framework and request expert feedback further validates the respect and trust we have in their organization.”

The novel MRV protocol will instill Shopify and other carbon credit buyers with the confidence that ocean-based CDR projects are removing emissions as promised.

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