Carbon Offsets: What Are They and How do We Use Them?

Carbon offsets are activities that compensate for carbon or GHG emissions in one area by reducing them in another so the overall outcome is no net increase in emissions. Carbon offsets are usually measured in tonnes of CO 2 equivalent. They are bought and sold through international brokers, online retailers and trading platforms in the way that stocks, bonds and mutual funds are sold. Projects that generate carbon offsets typically reduce GHG emissions by improving energy conservation, development of renewable sources of energy (including wind, solar, small hydro, geothermal and biomass) and tree planting (which increases CO 2 removal through photosynthesis).

VANOC’s climate change strategy involves reducing GHG emissions at source wherever possible and investing in projects that offset any remaining emissions. Developing our offset investment program is both technically and financially challenging.

First, we must define the scope of GHG emissions to be offset, both in terms of time and Games-related activity. The GHG impact of the Games should arguably include the Paralympic Games period and cover international travel by athletes, officials, spectators and workforce.

Second, we need to identify credible projects to invest in that will offset Games emissions by identifying further energy efficiencies or renewable energy sources elsewhere. In addition, we must secure funding for this investment.

Finally, the regulatory policy and market framework regarding carbon offsets is dynamic and the subject of considerable debate, both nationally and internationally.