Here we provide detailed information on the requirements for climate protection projects and about our analyses of the German market for carbon offsetting. You can also find our various publications from research projects here.
Guide on Voluntary CO2 Offsetting
Our guide on voluntary CO2 offsetting through climate protection projects provides information and assistance on how emissions can be voluntarily offset using climate protection projects. Special attention is paid to their quality standards.
Each person leaves a CO2 footprint. In Germany, this is on average a good 11 tonnes of CO2 per year. Emissions can be avoided or at least reduced by acting in a climate-conscious manner, for example by flying less or eating less meat. For the remaining emissions, the final step is to offset them. This is generally referred to as offsetting. The principle of offsetting is based on the idea that the effect is the same for the climate wherever greenhouse gases are emitted or avoided. Therefore, emissions caused at one point can be offset by making savings at another more distant point. However, the reduction in global emission levels achieved in this way comes very late. It is better to avoid and reduce your own emissions first because what you do not emit does not have to be offset at all.
Efficient cooking-stoves in RuandaSource: atmosfair gGmbH
Voluntary CO2 offsetting can offset the remaining climate-damaging emissions caused by one’s own actions – such as by travel, housing, nutrition and other activities of everyday life. This guide summarises what is important in voluntary offsetting and what needs to be predominantly taken into account to ensure a positive effect on the environment, people and the climate. It explains the relationships and technical terms as well as how climate protection projects work. Special attention is paid to quality standards, which are presented in individual fact sheets at the end.
Quality standards ensure compliance with certain criteria. Above all, they ensure that greenhouse gas emissions are offset at the desired level. The standards thus clarify the following exemplary questions:
In the end, does a new wind turbine really ensure lower overall emissions than without it?
Are there any negative side-effects after afforestation that undermine the benefits of the project?
And should not the Indonesian city administration have tackled the hazardous waste anyway?
Our guide addresses all these issues and ultimately provides you with a helpful summary for a properly understood voluntary offsetting of your own greenhouse gas emissions for both private individuals and companies. The guide can also offer providers of offsetting services or ‘climate-neutral’ products the opportunity to adapt their offers to the standards we believe are necessary.
Analyses of the German market for voluntary CO2 offsetting and national climate protection projects
We regularly commission studies to understand who is offering offsetting services in Germany, who is using them and which emission reduction credits are being used. Contractors investigate the market for us and map what is happening in the voluntary offsetting market in Germany in general.
We now have a timeline from 2010 to 2020 focusing on the behaviour and preferences of providers as well as the demand side of offsetting services and quality aspects of the credits used.
The voluntary domestic market for greenhouse gas offsets offers great potential as an instrument for ambitious climate protection and the transition to a low-carbon economy. At the same time, reduction obligations from the Paris Agreement, the EU Emissions Trading System (EU ETS 1) and the national or subnational level set limits to the scope for action.
In 2017, we commissioned a study to analyse the characteristics and preconditions of initiatives in other countries that generated carbon credits from domestic projects for voluntary offsetting. The aim of this study was, firstly, to investigate the challenges and options for domestic climate protection projects in the voluntary offset market, secondly, to develop proposals for better development of a domestic voluntary offset market.
The findings from this previous study have been updated in the research project “How does Germany offset GHG emissions?” (published in German “Wie kompensiert Deutschland?“ with an eight-page summary in English). For this purpose, five countries with domestic markets for offsetting were presented and examined. The study shows the tension that arises for carbon offset projects in Germany when requirements of the Paris Agreement as well as national and European regulations are considered. As the title of the study reveals, it also reflects the current market survey. In order to understand the development of the market in recent years , as well as to investigate the demand for certificates from German climate protection projects in the light of the requirements of the Paris Agreement, a new analysis of the German market for voluntary greenhouse gas offsetting is carried out for the years 2017 to 2020.
Studies (available in German only)
Climate Change 52/2022: Wie kompensiert Deutschland? Analyse der Potenziale für und Entwicklung von Anreizen zur freiwilligen Nutzung von Klimaschutzprojekten in Deutschland
Climate Change 11/2010: Analyse und Bewertung von Waldprojekten und entsprechender Standards zur freiwilligen Kompensation von Treibhausgasemissionen (Unique forestry consultants)
Recent years have witnessed a dynamic development within the voluntary offsetting market. The framework conditions for offsetting measures have been changing starting with the Paris Agreement and nationally determined contributions (NDCs). Since the Glasgow Conference at the end of 2021 concrete requirements have been produced for market approaches under Article 6 of the Paris Agreement, which also require a reorientation of the use of emission reduction credits for voluntary purposes. The rules of application for implementing Article 6 of the Paris Agreement accepted in Glasgow (Conference of the Parties (COP) 26) and the availability of Paris Agreement-compliant emission reduction credits will take some time to produce. During the expert workshop on 01/07/2022, four market participants (Öko-Institut e.V. (Institute for Applied Ecology), VW Kraftwerke GmbH (VW Power Plants), atmosfair gGmbH and UBA) assessed the trends from their perspective and discussed them with the participants.
On 28/09/2021 adelphi, NewClimate Institute and sustainable organized the final workshop of the research project "New perspectives for national climate protection projects for the compensation of greenhouse gases" (FKZ 3720425050) on behalf of the German Emissions Trading Authority (DEHSt) at the German Environment Agency (UBA). The project partners presented the results of the project so far and discussed them with the participants afterwards. Thus, the exchange could offer further insights for the final report.
The workshop "Leveraging domestic offset projects for a climate-neutral world" took place on 27/09/2016 in Berlin at the German Emissions Trading Authority (DEHSt) at the German Environment Agency.
Voluntary domestic offset schemes offer great potential as instruments for advancing ambitious climate action and supporting the transformation towards low-carbon economies. At the same time, their scope of action in industrial countries is limited by international, regional and national regulations on climate protection. Mitigation commitments from the Kyoto Protocol, the EU ETS 1 and national or subnational compliance mechanisms increase the risk of different forms of double counting and make it difficult for project developers to prove additionality. Adding to these challenges, the regulatory framework will change after the entry into force of the Paris Agreement.
Last year, an expert conference in Berlin facilitated the dialogue among representatives of different domestic offset initiatives in Europe and was the first step in an effort to foster mutual learning and to establish a forum for coordination. This year’s workshop aimed at providing a continuation of this forum, being divided in three different blocks:
Presenting preliminary results of the research study “Leveraging DOPs for a climate-neutral world: Regulatory conditions and options”
Discussing present challenges and opportunities from the experience of real cases
Looking at the future, discussing how the new climate regime signed in Paris will have an effect in the DOP market.
Finally, the workshop deepened in the understanding of key issues and options for improving the regulatory conditions in order to further develop domestic offset markets across Europe.
In the context of the on-going international climate negotiations, countries are free to develop initiatives on their pledges of Intended Nationally Determined Contributions (INDCs). However, an increasing number of companies, organisations and governments are thinking beyond the current UNFCCC initiated mechanisms and markets for climate mitigation. Indeed, in Europe, several initiatives are already exploring the possibility of developing domestic offset systems.
On 19/06/2015, the expert workshop on Domestic Carbon Initiatives organised by the Gold Standard Foundation and the German Environment Agency (UBA) facilitated the dialogue among domestic offset initiatives in Austria, Belgium, France, Germany, the Netherlands, Switzerland, and the United Kingdom. A representative of each initiative presented goals, visions, progress and challenges, thus providing a clear picture on current carbon offset activities in Europe. Market analysts gave insights on consumer preferences and supply patterns and provided a rationale for domestic offset initiatives.
Five working groups discussed the relevance of and options for flexibility mechanisms under the effort sharing decision for post 2020, and positive impacts beyond just carbon reduction. Moreover, experiences from the Californian carbon market were presented and participants discussed on how to account project credits in the national inventory, with particular regard to the double counting issue. Another working group discussed what kind of platform is desired to enhance dialogue and cooperation on carbon offsets in Europe.
Companies as well as individuals can offset carbon dioxide emissions by investing in forest carbon projects. Thereby, high quality standards must be adhered to. A new publication „Investing in forest carbon projects - Guidelines for companies and private investors” by the rainforest foundation OroVerde and the Global Nature Fund depicts possible criteria.
Tree with strong roots in a virgin forestSource: Oro Verde/Elke Mannigel
The brochure provides an overview of the different types of forest carbon projects, introduces the carbon market as well as the current standards in the German-speaking area, and assesses these standards on the basis of criteria. An actual project from Paraguay exemplifies how the recommendation of the guidelines can be implemented.This project has been documented in a second publication „Chances and challenges of forest and carbon projects – A pioneer project in Paraguay“ (this publication is available in German only).
Both brochures are part of the project „Climate and forest protection for private investors” which was jointly conducted by OroVerde and Global Nature Fund. The project is funded by the German Environment Agency and the Federal Ministry for the Environment.
Information by BMU/IKI and Germanwatch on REDD+ projects
The transition from the Kyoto Protocol to the Paris Agreement represents a fundamental change in the global control of greenhouse gas emissions which also affects the voluntary market. Whether and how to avoid ‘double counting’ of emission reductions is a critical issue – especially using the same emission reduction to achieve voluntary offsetting and to reach a country's mandatory target under the Paris Agreement (NDCs).
The study focuses on the future international structure of the voluntary carbon market. It identifies three models, each with its own strengths and weaknesses, feasible in the Paris era:
Acting ‘outside’ a country's mandatory contribution – referred to as ‘non-NDC crediting’ by experts.
Acting ‘within’ such a contribution – ‘NDC crediting’ model – and
Jointly achieving the emission reduction target without an offset claim – referred to as the ‘contribution claim’ model.
Impacts and benefits of the models are likely to change over time if NDCs are expanded.
Aiming at maximising climate protection effects and hedging against some of the risks arising from the models' features, the study draws the following conclusion: the market should focus on project activities with challenging reduction options and on host countries with ambitious targets.
In this context it is important that the voluntary carbon market ensures that the project activities to be supported do not prevent governments from enhancing their own climate protection efforts.
Publications
(partly available in German only)
Climate Change 04/2021: Voluntary offsetting: credits and allowances
Freiwillige Kompensationszahlungen und nachhaltige Lebensstile: Passt das zusammen? - Dokumentation der UBA-Tagung am 10.11.2014 in Berlin (UBA Texte | 24/2015)
