Carbon Offsets 101

This essential introduction to carbon offsets covers the basics of how offsets work and provides an overview of the global voluntary market. The hour-long webinar will explain offset terms and definitions, project types, quality criteria, project standards and credit certification, and retail offset transactions and product certification. We will also cover the state of and trends in the voluntary marketplace, and an overview of different players in the market.

This webinar is designed for those who want a basic overview of the international over-the-counter (voluntary) carbon market, with special emphasis on offset project types and how offsetting is used to reduce the environmental impact of individual and organizational activities. Originally aired Wednesday, August 6, 2014 at 10:00 am PT with Todd Jones, Green-e Climate Manager

Transcript

1. CARBON OFFSETS 101
   Definitions, Projects, Players and Trends
   August 6, 2014 Todd Jones, Green-e Climate Manager
   Center for Resource Solutions
   

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4. GREENHOUSE GASES
   AND CLIMATE CHANGE
   

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5. Greenhouse Gas
   (GHG) Chemical Symbol
   Global Warming
   Potential (GWP)
   Carbon Dioxide CO2
   1
   Methane CH4
   21
   Nitrous Oxide N2
   O 310
   Hydrofluorocarbon HFC 140 - 11,700
   Perfluorocarbon PFC 6,500-9,200
   Sulfur Hexafluoride SF6
   23,900
   

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6. Source: IPCC, AR 5, Working Group I, Summary for Policymakers, pg.14,
   http://www.climatechange2013.org/images/report/WG1AR5_SPM_FINAL.pdf
   

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7. Source: Hugo Ahlenius, UNEP/GRID‐Arendal,
   http://www.grida.no/graphicslib/detail/historical‐trends‐in‐carbon‐dioxide‐concentrations‐and‐temperature‐
   on‐a‐geological‐and‐recent‐time‐scale_a210
   

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8. Source: IPCC, AR 5,
   Working Group I,
   Summary for
   Policymakers, pg.18,
   http://www.climatecha
   nge2013.org/images/re
   port/WG1AR5_SPM_FI
   NAL.pdf
   

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9. OFFSET BASICS
   

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10. Types of Carbon Markets
    Compliance Voluntary
    Emissions
    (allowances)
    1
    Cap-and-trade
    2
    Voluntary Cap-and-
    trade
    Emissions
    Reductions
    (offsets)
    3
    Compliance Offsets
    4
    Offsets
    

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11. Carbon Offset
    An intangible commodity
    representing a reduction in
    greenhouse gas emissions
    

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12. + -
    GHGs
    

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13. scopes
    1 2 3
    

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14. projects
    

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15. STRUCTURE OF THE
    VOLUNTARY MARKET
    

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16. Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Lifecycle of a Retail Offset
    

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17. Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Lifecycle of a Retail Offset
    Credits
    

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18. Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Lifecycle of a Retail Offset
    Credits
    Project
    developers/
    owners
    Project
    Standards
    and
    Certification
    Programs
    Offset
    Providers/
    Retailers
    Project
    Registries
    Retail Offset
    Standards and
    Certification
    Programs
    Brokers and
    Exchanges
    Direct and
    wholesale
    purchasers
    

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19. OVERSIGHT AND
    QUALITY ASSURANCES
    

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20. Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    

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21.  The American Carbon Registry
     The Clean Development Mechanism
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    

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22.  The American Carbon Registry
     The Clean Development Mechanism
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    • Retailers
    • Direct and Wholesale
    Purchasers
    • Permanence
    • Additionality
    • Verified
    • Enforceable
    • Real
    

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23.  The American Carbon Registry
     The Clean Development Mechanism
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    • Retailers
    • Direct and Wholesale
    Purchasers
    • Permanence
    • Additionality
    • Verified
    • Enforceable
    • Real
    

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24.  The American Carbon Registry
     The Clean Development Mechanism
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    • Permanence
    • Additionality
    • Verified
    • Enforceable
    • Real
    in Transparency & Oversight
    Gap
    

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26.  The American Carbon Registry
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    • Permanence
    • Additionality
    • Verified
    • Enforceable
    • Real
    

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27.  The American Carbon Registry
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    • Permanence
    • Additionality
    • Verified
    • Enforceable
    • Real
    Looks for the
    Green-e logo
    

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28. Endorsed Programs
    Endorsed Programs
    Endorsed Programs
    Retail Assurances
    1. Offsets are supplied with verified
    emissions reductions and projects that
    meet a high standard of quality.
    P.A.V.E.R.
    2. Emissions reductions are not being double-sold. Retirement of correct volumes
    and types of emissions reductions on behalf of customers based on an audit of
    sales and supply. Exclusive Ownership
    3. Customers are given complete and accurate information about their purchase
    and are not mislead with inaccurate advertising. Disclosure
    

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29. • P.A.V.E.R.
    • Exclusive Retail
    Ownership
    • Disclosure
     The American Carbon Registry
     The Climate Action Reserve
     The Gold Standard
     The Verified Carbon Standard
    Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Registry account-
    holders/retailers
    • Permanence
    • Additionality
    • Verified
    • Enforceable
    • Real
    Looks for the
    Green-e logo
    

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30. Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Looks for the
    Green-e logo
    •Additionality
    •Permanence
    •Real
    •Ownership
    •Verified
    •Enforceable
    •Disclosure
    

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31. Carbon offset project Greenhouse gas
    emissions reduction
    Retail carbon
    offset
    Retail
    consumer
    Carbon Offset Market - Oversight
    Looks for the
    Green-e logo
    A .P.R.O.V.E.D.
    

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32. TRENDS IN THE
    VOLUNTARY MARKET
    

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33. Please visit http://www.forest‐trends.org/vcm2014.php
    for the Ecosystem Marketplace State of the Voluntary
    Carbon Markets Report 2014.
    

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34. 0
    20,000
    40,000
    60,000
    80,000
    100,000
    120,000
    2008 2009 2010 2011 2012 preliminary
    2013
    metric tons CO2e
    Green-e Climate Growth*
    *Current Endorsed Programs only and controlling for outlying purchases.
    

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35. Green-e Climate Certified Sales 2012
    57.25%
    18.41%
    13.65%
    5.91%
    3.99%
    0.43%
    0.35%
    Project Types
    LFG Methane
    Coal Mine Methane
    Wind RE
    EE
    Forestry
    Solar RE
    Geothermal RE
    83.74%
    5.91%
    3.99%
    3.00%
    3.00%
    0.35%
    Project Location
    US
    South Africa
    Kenya
    China
    India
    Turkey
    

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36. 55.53%
    36.39%
    8.08%
    Endorsed Programs
    CAR
    VCS
    PRE
    Green-e Climate Certified Sales 2012
    

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37. 0
    20
    40
    60
    80
    100
    120
    MA OH NY OR CT CA WA NJ IL PA
    Top 10 Number of Customers by Location
    Green-e Climate Certified Sales 2012
    

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38. Todd Jones
    Green-e Climate Manager
    Center for Resource
    Solutions
    todd@resource-solutions.org
    CONTACT
    @greenemarktplc
    facebook.com/CenterForResourceSolutions
    

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