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THE CYCLE – OFFSET
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Another option would be that large organizations implement their own
emissions reduction project, most likely in a field they are already active in,
for example a power company that develops a renewable energy project in a
developing country which would then be certified according to CDM criteria
or verified by another credible standard. That way the company can benefit
from the technological experience and take credits for the project benefits
plus save cost by keeping as much as possible of the investment in house.
One corporation that thinks offsets are worthwhile is the HSBC Group,
which says it is the world’s first carbon-neutral major bank. Its carbon man-
agement plan includes managing and reducing its direct emissions, buying
“green electricity”, and offsetting its other emissions. It bought 170 000
tonnes of carbon offset credits from a New Zealand wind farm, an Austra-
lian organic waste composting scheme, an agricultural methane capture
project in Germany, and an Indian biomass co-generation plant.
More and more firms now accept the concept as a way of showing how green
they are. Their motives may include ethical conviction, compliance with vol-
untary and mandatory targets, product branding and stakeholder pressure.
They may also fear the threat of legislation and want to persuade government
that regulations are not needed. Whatever their reasons, they are economically
still more powerful than small organizations- powerful enough to set up their
own projects, and to direct the transfer of technology and capacity building.
1 060
1 470
Emissions from one tonne
of
paper waste
going to
disposal (no recycling, no
recovery)
Emissions from one
tonne of
food waste
going to disposal
(no recovery)