Top 5 Questions About Carbon Offsetting

A carbon credits represents the avoidance or removal of greenhouse gases equivalent to one tonne of CO₂. These carbon credits can then be marketed, traded and bought. For example, they can be bought to help offset less avoidable carbon dioxide emissions that are produced elsewhere, such as the emissions released when driving a car.

There is a robust programme of third-party independent standards, verification processes and registries to help ensure the quality and integrity of projects that produce carbon credits. The Verified Carbon Standard, the Gold Standard and the Climate Action Reserve are examples of well-known standards in the market. In order to be validated to these standards, projects are checked by independent Designated Operational Entities (DOEs) – which are qualified to ensure the projects meet crucial quality criteria and deliver genuine reductions. In addition, the DOEs check the projects on a regular basis to ensure they are continuing to deliver what is claimed.

Shell will only partner with projects that are verified by independent Designated Operational Entities with established processes to verify reported CO₂ emissions reductions. Key criteria in evaluating the credibility and quality of an offset project is proof that it is:

1. Additional – the reduction in emissions would not have occurred without the carbon finance from selling carbon credits
2. Verifiable – the carbon credits will be retired from the carbon market so that they cannot be sold again or double-counted
3. Permanent – the project delivers the reductions claimed and they will not be reversed
4. Addressing leakage – the emission reduction in one area has not caused an increase in emissions elsewhere