Toyako Carbon　Offset


	Top Page＞What is carbon offset

This video clip was provided by ap bank
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When we switch on electricity or travel on vehicle, we consume fossil fuel and emit CO2,which is the cause of global climate change. On the other hand, projects such as wind power and energy efficiency can reduce fossil fuel consumption, thus reduce CO2 emissions. Carbon offset is a mechanism, which we try to reduce our own CO2 emissions and purchase ‘carbon credit’ for the remaining part that we cannot reduce by our own effort through investing in emissions reduction projects, thus letting other people reduce CO2 emissions on behalf of us.

We cause CO2 emissions, which are the cause of global warming in our daily activities such as use of electricity and traveling on vehicles. On the other hand, projects such as wind power and energy efficiency can reduce fossil fuel consumption, thus reduce CO2 emissions. Carbon offset is a mechanism, which we first try to reduce our own CO2 emissions, and then calculate unavoidable CO2 emissions that cannot be reduced to zero just by our own effort. After calculation, carbon credits equivalent to the total or partial amount of the CO2 emissions are purchased and neutralized to make sure that the credits are used up to offset the emissions. You may choose to invest in emission reduction projects to obtain carbon credits you need instead of purchasing them.
Carbon offsetting can help people to become aware of their own “carbon footprint”, which are environmental burdens caused by their own business and daily activities, and to become responsible for it.

Importance of Carbon Offsetting

There is criticism that carbon offsetting is to justify CO2 emission just by purchasing carbon credits, and is facilitating speculative buying and selling of carbon credits. This section describes how promotion of carbon offsetting can contribute to mitigation of global warming and to sustainable development of developing countries.

In general, when a country develops and grows, manufacturing and production increase, therefore CO2 emissions also increase. The Clean Development Mechanism (CDM) is a mechanism to restrain and reduce greenhouse gas (GHG) emissions without constricting development of developing countries. It is a mechanism to promote a clean development. Carbon credits generated from CDM projects (CERs) will be used for the carbon offsetting of the Hokkaido Toyako Summit.

Under the CDM scheme, developed countries such as Japan provide developing countries with knowledge and technologies to reduce GHG emissions and to increase energy efficiency. To have developed countries participate in the scheme to help clean development of developing countries, there is an incentive. Emission reductions achieved by the CDM projects become tradable carbon credits, which can be transferred to donor companies in return for the knowledge, technology and finance provided.

It costs a lot to implement new equipments and facilities or replace them to increase energy efficiency and reduce GHG emissions. Companies in developing countries can use the sales revenue of the carbon credits to cover the initial costs or to reinvest in another development.

Carbon offsetting can help people to become aware of their own “carbon footprint”, and to become responsible for it. The money spent on purchasing carbon credits for carbon offsetting will be utilized for clean development of developing countries. In this sense, promotion of carbon offsetting can contribute to mitigation of global warming and to sustainable development of developing countries.