CarbonClick’s blended basket approach
We have a unique approach to carbon offsets which balances the desire to conserve and regenerate the local environment. Depending on your locale, your offsets will automatically be sourced from a number of projects. After fees are deducted, the remaining amount is split 50/50. Where available, 50% will be allocated to local flagship forest regeneration or conservation projects, and 50% will go to high-impact international clean energy projects.
If we don’t yet have a local project for your country, your offsets will be allocated to 100% international high-impact projects.
Local baskets are currently available for United States, Australia and New Zealand. Due dilligence is being conducted on additional projects.
Locale-specific flagship forest regeneration and conservation projects
We have a passion for trees and want to support the reforestation of our planet. Our locale-specific projects are selected for the amazing value they add to the local community and focus on forest regeneration, conservation and biodiversity projects.
- Pungo River Avoided Forest Conversion Project, South Carolina, USA
- Yarra Yarra Biodiversity Corridor, Perth, Australia
- Arawera native forest conservation, Taranaki, New Zealand
Arawera native forest
South Taranaki, New Zealand
This project conserves an area of rich indigenous forest in South Taranaki, capturing carbon from the atmosphere and providing a habitat for native wildlife.
Southland, New Zealand
This initiative protects a native rainforest, made up tawhai (silver beech), miro and tōtara and provides economic opportunities for local Maori
North Carolina, United States
With the help of CarbonClick contributions, this forest in North Carolina has been saved from deforestation, enabling trees and soil to absorb carbon from the atmosphere.
Yarra Yarra Corridor
Western Australia, Australia
This reforestation project is re-establishing a 200km long forest corridor in the Western Australian outback, capturing carbon and restoring biodiversity.
High-impact international clean energy projects
These high impact projects are selected for their strong positive impact on cleaning our atmosphere and reducing or avoiding emissions – normally this is achieved for displacing coal or other fossil fuel energy sources.
These projects also score highly in regads to co-benefits like employment and improving living standards, but are also cost-effective and reduce the average price of our carbon offset baskets.
- Solar Water Heater Project, India
- Wind Farm Development, India
- Biogas Energy Project, Hezhang, China
- Rainforest Conservation and Agroforestry, Panama
Tropical rainforest panama
This project is reforesting 5 regions of rainforest with mostly indigenous species and is sustainably producing timber and cacao.
Solar Water Heaters
This program delivers solar water heaters to Indian communities and businesses, helping avoid the burning of coal and providing cheap renewable energy for poor families.
This project funds the generation of clean wind electricity for communities in India that otherwise rely on dirty fossil fuels like coal.
Hezhang, Guizhou, China
Funds for this project are helping create biogas generators that turn waste into energy, providing a cheap source of energy for rural Chinese farmers.
Frequently asked questions
Carbon Click recommends that businesses take climate change action along the following lines
- Step 1
Measure your impact, through internal sustainability audits, or using MPI’s emissions guidelines.
- Step 2
Reduce. Businesses and individuals must drastically reduce their emissions if we are to avoid the worst of climate change. Nothing else can work.
- Step 3
Offset. For any emissions leftover once these emissions reduction goals are realised, offsetting is key to reducing any business’ impact to ‘net zero’. The UN Sustainable Development Goals can be achieved in tandem with carbon offsetting, because the projects supported often have positive social and economic benefits in the local communities in which they take place.
There are so many good resources available to educate and inspire us to take climate action. Here are are some good places to start:
- Check Out Gen Less’ site to find out how you personally can embrace a lifestyle that uses less energy: https://genless.govt.nz/
- Stuff’s article 10 tips for business to reduce their emissions is a good place to start for actions your workplace can take
- For individual action, check out WWF’s guide here
The Sustainable Development Goals are the blueprint to achieving a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate, environmental degradation, prosperity, and peace and justice. The SDGs, also known as the Global Goals were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. For more info on the SDGs check out the UN website here.
Climate change threatens our economy and our way of life. Moody’s Analytics report that climate change could cost the global economy US$ 69 trillion by 2100. Greenhouse gas emissions are continuing to increase exponentially worldwide, which means we need to increase our efforts to transition to a low carbon economy. This, however, is likely to take significant investment and time. Offsetting the CO2 we are producing is something we can do right now to take climate action.
Congratulations on taking steps towards reducing your emissions and being part of the fight against climate change. Offsetting is part of the larger journey towards ‘net zero’ carbon, as not all emissions can be avoided and reduced. For these emissions, offsetting is the only way to neutralise your impact.
Offsetting is a way to take action on climate change right now, alongside your compliance with the Emissions Trading Scheme. To fight climate change we urgently need to reduce the amount of carbon in the earth’s atmosphere, by funding projects that permanently reduces or avoids emissions being released into the atmosphere. This is carbon offsetting.
The purchase of NZ Emissions Trading Scheme (ETS) carbon credits doesn’t necessarily do this. This is because 1) the government allocates free ‘permits to emit’ to certain trade-exposed industries and 2) any organisations can buy uncapped, fixed price units from the government to fulfil their NZ ETS requirements. Neither of the carbon credits issued in either of these situations are connected with a real and permanent emission reduction, for instance, a forestry blocks absorbing carbon. Therefore, a business meeting its NZETS requirements is not ‘offsetting’ it’s emissions, because they may have bought or been allocated credits that don’t directly reduce or avoid carbon emissions. However, NZETS credits registered under the New Zealand Permanent Forest Sink Initiative (NZ_PFSI) can be used for carbon offsetting because they are permanent and connected with a permanent reduction in emissions.
Offsetting with CarbonClick is a way to compensate for a business’ footprint and to make a direct measurable impact to fight climate change, something that is done alongside and in addition to meeting NZ ETS requirements.
The NZ ETS credits CarbonClick has retired as offsets are NZU_PFSI credits and are therefore connected with projects that permanently reduce or avoid emissions being released into the atmosphere. Once these projects have issued us the carbon credits, they are retired, meaning that no other organisation can claim the credit for this offset.
There is still room for climate action, even for those who have offset their emissions! Our ambition is that globally, people will use offsetting to become ‘climate positive’ – that they will be leaving a positive impact exceeding their personal carbon footprint.
There is no universally agreed upon definition of carbon neutral. However, CarbonClick uses following definition from the NZ Commerce Commission Guidelines for Carbon Claims: “Carbon neutral means that – through a transparent process of measuring emissions, reducing those emissions and offsetting residual emissions – net calculated carbon emissions equal zero.”
CarbonClick can help your business offset its residual emissions and become carbon neutral provided that:
- You’ve measured your emissions in compliance with the GHG Protocol Corporate Standard and ISO 14064-1:2006
- You have an enacted and are currently working on an ambitious emissions reduction plan (check out Science Based Targets to find out more)
If you don’t have the resources to do a full emissions measurement for carbon neutrality, CarbonClick can still help. This might be through helping you make a ‘climate friendly’ claim, as long as you have a reduction plan in place and have made some kind of measurement of your emissions.
For more on carbon neutrality check out our blog post here.
Voluntary carbon offsetting is to compensate for unavoidable carbon emissions. To do this, organisations support projects that positively impact the environment and reduce or avoid carbon emissions that would have otherwise contributed to climate change. If the positive impact of this support negates the negative impact they have, ie: if the emissions avoided equal the original emissions of an activity, that activity is said to be “offset”.
A carbon credit is what is bought and sold when dealing with voluntary carbon offsets. For every tonne of CO2 that a project manages to absorb or otherwise reduce, a carbon credit is issued. Carbon credits are certified by international standards and held in registries like the Gold Standard registry (international credits) or the Emissions Trading Register (New Zealand).
If only it were so easy! Offsetting is only part of the solution and should be used alongside ambitious and continued actions to reduce emissions wherever possible.
- Auckland Council’s FutureFit is a great place to start, and they also list a number of resources which help you identify ways on how to reduce.
- For individual actions you can take, check out WWF’s guide here.
- For New Zealand based projects, CarbonClick buys credits certified under the Permanent Forest Sink Initiative and Plan Vivo voluntary standards.
- Internationally, we only fund carbon offset projects which have been certified by the following standards; Gold Standard, Verra, Plan Vivo, United Nations’s UNFCCC Clean Development. These standards provide a methodology framework, independent verification process, and a registry to ensure emissions reductions are real, additional, permanent and unique.
CarbonClick follows industry best practice to ensure that the offsets we provide have a real, measurable impact on reducing climate change. By ensuring our projects are of the highest quality, CarbonClick seeks to reduce reputational risks and maximize the impact our customers are having by taking the following steps:
- For international projects, we only short-list projects that comply with our independently verified selection methodology, which uses many of the same stringent requirements of ICROA Code of Best Practice.
- For New Zealand based projects, we purchase units registered under the Permanent Forestry Sink Initiative.
- We only select projects certified to the highest international standards, and seek projects that contain co-benefits wherever possible.
- Our selected projects undergo a qualitative review by our network of industry experts.
The price of carbon credits varies widely and could cost between $2 to $40 per tonne. The reason this price ranges so much is due to different operating costs, the countries the projects take place in and how the project is managed. The price of projects in New Zealand range from $25 to $32 per tonne and international projects range from $2 to $15. Our price reflects the current projects in our inventory and will therefore vary slightly through time, with a target of around $25NZD per tonne.
We’re also working hard to negotiate the best price, obtaining a minimum 10% discount (often we are able to secure more, due to buying large volumes) from our offset providers. The price you see includes a 10% margin for CarbonClick, which funds things like customer support, auditing projects, building and maintaining technology and more.
CarbonClick sources offsets from multiple projects and sources. From customer interviews, we know there is a preference for local (i.e., NZ Domestic), forestry-based offsets – and there is a great story to be told here.
However, on the flip side, when customers are asked about the economics of offsetting (international offsets being more cost-effective) or their opinion about co-benefits of offsets (offsets in developing countries often have more social impact benefits in addition to offsetting emissions), they acknowledge that international, projects play an important part in the offsetting story.
Additionally, it is universally recognised that we need to reduce fossil fuel consumption. Therefore one of the most important ways to invest money from offsets to avoid emissions is by supporting renewable energy and energy efficiency projects, which are primarily based offshore.
Therefore we provide a mixed basket of high-quality offsets from international and domestic sources and offsets from forests and other projects. This ensures that our basket is cost-effective, diverse in co-benefits and also reflects our customers’ desires to see their impact onshore.
The money paid to CarbonClick for carbon credits goes towards certified carbon offset projects that have met the highest standards. The funds are distributed amongst carbon offset suppliers carrying out the projects and CarbonClick takes a margin on the carbon credits for sourcing projects, quality assurance, administration and transaction fees.
- For New Zealand based projects, we are looking to work directly with landowners and reputable brokers who can give us full end-to-end transparency on the forest and movement of credits. Our current provider of permanent New Zealand forestry credits is NZ Carbon Farming, who are leaders in this space. We hope to announce additional partners in the near future.
- For international offsets, we purchase from global voluntary offset market platforms like the UNFCCC, Carbon Trade Exchange, from brokers like Umwelt-Projekt-Management GmbH and CarbonBay. The projects sourced from all over the developing world. Information about particular projects is available to view on our projects page.
Check out our pricing page for more details.
To be successful and deliver impact on a global scale, our business needs to be sustainable. We need to cover costs such as wages, quality assurance, administration and transaction fees. Our sources of revenue are:
- We take a 10% margin on the carbon credits. Note, we are also working hard to negotiate volume discounts with our brokers (minimum 10%) to ensure customers get carbon credits at, or below market rates.
- Our e-commerce plugin is priced as a Freemium model, where some customers will pay a monthly fee to get additional features in their store.
- We charge an integration fee for any business that needs a customised solution.
- We are backed by seed fund investment so that we can remain sustainable as our business scales up.