This document discusses carbon offsets and provides information on how they work. It explains that carbon offsets represent the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases. It also outlines the basic process of how offsets work, which involves setting a baseline and emissions cap, issuing permits, and allowing trading to reduce emissions. The document notes there are over 200 project types that generate offsets and follows with some variations in offset programs and standards. It closes with considerations around whether offsets can scale effectively to address climate change and provides some caveats.

1. Making Sense
of
Carbon Offsets
Ewan O’Leary
Offset Collective, Inc.
18th June, 2008

2. parts-per-million
<!>

3. parts-per-million
<@#$^!!>

4. Carbon 101
Fungible = freely exchangeable

5. 2,983
MtCO2e
(World Bank)
20.4
Metric Tons/ yr
(EIA)
= 475 Trees
(for 10 years)
EPA

6. “One carbon offset represents the
reduction of one metric ton of
carbon dioxide, or its equivalent in
other greenhouse gases.” -
Wikipedia

7. How Offsets Work
CO2e
into the atmosphere
You CO2e
Out of the
atmosphere

8. Value the Priceless
1. Baseline emissions
2. Set an emissions cap
Sightline Institute

9. Value the Priceless
3. Issue permits
4. Reduce the cap
5. Trade!
Can we scale?
Sightline Institute

10. Voluntary
Carbon Market
=Demand
Consumer

11. LULUCF
REDD
Popsets?
Renewables
200+ Methane
project types

12. Follow the Money
• Reduce costs
• Promote
investment
• Drive innovation

13. “Additionality”
Business-as-usual
is not
climate as usual

14. Important!
• Transparent
• Verifiable
• Valid
• Permanent
• Vintage

15. Standards
Source: EcoSystem Marketplace, New Carbon Finance, 2008

16. Some Variations
• Geography
• Project Type
• Co-benefits
Gold Standard
VER
CDM VCS
CCX
JI
Green‐E

17. Does Will it Work?
• Scale
• Collaboration
• Effectiveness
$43-Trillion US
(opportunity IEA)

18. Caveats
1. Bless me Father, for I have sinned
2. We can’t see the forest for the trees

19. Caveats
3. All your tree are belong to us
4. Is it just me or is this lifeboat leaky?
5. Death and taxes

20. DO SOMETHING!
join a CRAG*
*Carbon Reduction
Action Group