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.