Top 5 Questions About Carbon Offsetting

Shell is buying carbon credits in projects that protect, enhance or restore natural ecosystems, including reforestation, to absorb and store carbon dioxide. Shell invests in nature-based projects that do more than simply reduce or avoid the release of CO₂ emissions – they also benefit local communities by funding activities such as new schools or fresh water supplies. Shell has built a broad portfolio of projects. Shell has sourced some carbon credits from within the UK, including the Overkirkhope Project in the Scottish borders and the Longwood Project in Cumbria, both woodland creation projects verified to the UK Woodland Carbon Code. However, the UK market for carbon credits is small. Therefore, to have enough to offset our UK customers CO₂ emissions in this scheme, these will be supplemented by carbon credits purchased from nature-based projects globally, including Cordillera Azul National Park Project in Peru, Katingan Peatland Restoration and Conservation Project in Indonesia and GreenTrees Reforestation Project in the USA. In the UK Shell will also be supporting Forestry and Land Scotland which ultimately will generate carbon credits.

The Framework is a series of COP decisions providing advice on national-scale (or interim subnational, while preparing national systems) ‘policy approaches and positive incentives for REDD+’.

REDD+ projects can form part of / contribute to national Warsaw Framework approaches if/when they are ‘nested’ within the national (or subnational)forest reference emission level (FREL), to prevent double accounting of, or payment for, emission reductions.

What we can do as NBS investors is work with governments to ensure there is an enabling environment in place that will allow for projects to sit within national (Warsaw Framework) REDD+ accounting and implementation frameworks (including a national REDD+ strategy, FREL, safeguards information system and national forest monitoring system). We will continue to work closely with national governments to address issues around double accounting / double payment to ensure the environmental integrity of our investments and the certified carbon credits they yield.