Carbon removal vs carbon avoidance: what's the difference?

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Carbon removals vs. carbon avoidance: what’s the difference?

<h2>What is a carbon credit?</h2>
Carbon credits work by providing funding (‘carbon finance’) to projects in exchange for activities which avoid or remove emissions from our atmosphere referred to as ‘Carbon Avoidance’ and ‘Carbon Removal’ credits.
Each carbon credit represents the avoidance or removal of one metric tonne of greenhouse gas emissions. However, not all carbon credits are created equal. Some are much higher-quality than others.
<h2>Is carbon removal the same as carbon avoidance?</h2>
Carbon avoidance projects prevent additional greenhouse gas emissions from entering the atmosphere by reducing sources of emissions. An example of this would be replacing a fossil fuel power plant with a wind farm or a solar farm. From the moment the renewable energy replaces energy from fossil fuels, the potential emissions of the fossil fuels that aren’t burned for energy are categorised as avoided emissions.
Carbon removal differs from carbon avoidance because it removes CO2 from the atmosphere.
So, where avoidance is trying to minimise the volume of greenhouse gases being emitted, removal is trying to decrease the amount of CO2 in the atmosphere.

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If you think about atmospheric CO2 as the water in a bathtub, with emissions represented by water coming in from the tap – then direct emissions reductions and carbon avoidance are both akin to turning down (or off) the flow of water from the tap, whereas removals are akin to pulling out the plug to let some of the water drain away.

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<h2>Definition</h2>
Carbon removal
Projects directly take CO2 out of the atmosphere.
Carbon avoidance
Projects prevent additional greenhouse gases such as CO2 from entering the atmosphere.

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<h2>Cost</h2>
Carbon removal
Credits cost between £30-£1,000 per tonne depending on a range of factors including the type of project, vintage of the credit, and location of the project.
Carbon avoidance
Credits cost between £7-£20/tonne depending on a range of factors including the type of project, vintage of the credit, and location of the project.

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<h2>Role in achieving net-zero</h2>
Carbon removal
Credits can be part of your Beyond Value Chain Mitigation (BVCM) i.e. funding climate action as part of your net-zero journey. However, unlike carbon avoidance credits, carbon removal credits also have a unique role to play at the end of your net-zero journey. Once you have reduced your emissions by at least 90%, carbon removal credits can be used to balance your remaining, unavoidable emissions to bring your net emissions to zero. 
Carbon avoidance
Credits can also be part of your BVCM, and can be used throughout your net-zero journey alongside reducing your emissions.

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<h2>Project types</h2>
Carbon removal
Projects include nature-based solutions such as blue carbon, ARR (afforestation, reforestation and revegetation), biochar, as well as technological solutions like Direct Air Carbon Capture and Storage (DACCS).
Carbon avoidance
Projects include renewable energy (wind, solar, hydro), preventing deforestation of mature forests, peatland and wetland restoration,and community-based projects such as efficient cookstoves and clean water solutions.

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<h2>Certification</h2>
Carbon removal
Projects are certified through bodies such as Gold Standard and Verified Carbon Standard, as well as other certifying bodies such as Puro. In order to be certified by a reputable body, removal projects must prove the carbon will be stored securely for a long time, known as “permanence”, and so project developers must ensure that the carbon sequestered by the project is protected.
Carbon avoidance
Projects are also certified through bodies such as Gold Standard and Verified Carbon Standard. For projects to receive these certifications they also need to prove their permanence, among other factors like additionality and co-benefits.

<h2>Is your business ready to take climate action?</h2>
Visit our Impact Shop to see our Carbon Avoidance and Carbon Removal projects, or complete the form below to schedule a call with our team to start your climate journey and create a solution to suit your business.

Speak to our team. We're here to help find your perfect climate solution.

Case studies

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Case study: SmartestEnergy Business

<h2>About SmartestEnergy Business</h2>
SmartestEnergy Business is a next generation energy company empowering sustainable businesses to control their energy overheads, protect against market uncertainty and achieve environmental goals. They’re proudly committed to funding the global reforestation of diverse trees, and climate action projects to support future decarbonisation.

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<h2>Issue </h2>
SmartestEnergy Business had already shown a deep commitment to environmental sustainability, championing the shift to renewable energy. But they wanted to take a more proactive stance on climate change, so they teamed up with Ecologi.
Joining the Ecologi community was a great way to enhance the company’s brand reputation, and gain a competitive advantage by firmly demonstrating a dedication to responsible business practices and generating good news stories to be shared online and across social media.

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Above all, SmartestEnergy Business just wanted to do something good for our planet. Collaborating with Ecologi allowed the team to actively address environmental challenges and make a genuinely meaningful impact.

<h2>Challenges</h2>
The team at SmartestEnergy Business had been on the lookout for the right tools and technologies to progress their climate journey, but often had trouble finding cutting-edge carbon projects that were affordable.
One example is the funding of blue carbon removal projects. In the past, blue carbon removal had proven to be costly to support, but the ability to flexibly fund blue carbon projects anytime through our Ecologi Impact Shop placed this innovative new technology within reach.
<blockquote>“We have had experience in the past looking for carbon offsetting projects such as blue carbon, but it was tough to find ones that fit our budget. Since the project has been made available this year with Ecologi, we have been able to purchase blue carbon and we look forward to funding even more technologically revolutionised methods of carbon offsetting.”</blockquote>

<h2>Solution </h2>
Ecologi has been embraced throughout the business model. In fact, the relationship with Ecologi spearheads the SmartestEnergy Business renewable energy proposition. 
Ten trees are planted in their global impact forest for every renewable energy customer that joins or renews. And those customers are given the feel good factor with a Tree Planting Commitment Certificate and Renewable Commitment Certificate sent as soon as their contract goes live. The team are proud to empower a greener generation and support UK businesses in taking positive climate action.

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The team also launched a Climate Action Calendar at the start of the year. This means that every month SmartestEnergy Business funds a new carbon avoidance or removal project. These range from community donations, to blue carbon removal, to wildlife and forest protection, and much more. 
Each new project supported is showcased in their monthly Sustainable Spotlight, which shares inspiring stories through blogs on their customer <a href="https://smartestenergybusiness.com/latest-news-company-updates-smartestenergy-business-info-hub/" target="_blank" rel="noopener">Info Hub</a> and <a href="https://smartestenergybusiness.com/sustainable-spotlight/)" target="_blank" rel="noopener">website</a>, social media posts, and their customer newsletter. Each month the team will be also adding to an evergreen <a href="https://smartestenergybusiness.com/climate-action-project-conserving-the-amazon-in-brazil/" target="_blank" rel="noopener">infographic</a> that celebrates the impact of their Climate Action Calendar. It promises to be a real visual feast by the end of the year!

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The team loves to share their good work and uses their work with Ecologi to inspire more sustainable thinking in their colleagues. In fact, the entire workforce has made a shared resolution to place sustainability at the heart of everything they do in 2024.

<h2>Outcome</h2>
SmartestEnergy Business joined Ecologi less than a year ago and has already funded the planting of 18,951 trees,avoided 185.7 tonnes of CO2e, and removed 5 tonnes of CO2e.

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By becoming part of Ecologi’s community, SmartestEnergy Business has given its brand reputation a big boost by showcasing its dedication to sustainability through regular good news stories and project updates. 
SmartestEnergy Business has successfully enhanced its appeal, winning and retaining more climate-conscious businesses, offering tree planting certificates and other marketing collateral. By assisting these businesses in their journey towards net-zero, SmartestEnergy Business distinguishes themselves as a socially responsible business. Giving something back to customers when chosen as their energy supplier has really helped them gain a competitive advantage in their market.
John-Paul Jenner, Senior Marketing Manager at SmartestEnergy Business, said: “We have embraced Ecologi throughout our global business model and we take pride in leveraging our partnership to inspire green thinking with our people to make conscious decisions over their own carbon footprints.”
He continued:
<blockquote>“We have made a shared resolution in 2024 to place sustainability at the heart of everything we do, and commit to funding a new climate project through Ecologi each month. This all helps to raise further awareness of sustainability whilst spotlighting the amazing efforts being made at local community level.”</blockquote>

<h2>Want to make your business greener, better, faster, stronger? </h2>
If this article has inspired your business to start its climate journey, talk to our team today.

Schedule a call with our team

Our response to the BBC Panorama Investigative Documentary on the Carbon Markets

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Our response to the upcoming BBC Panorama Investigative Documentary

UPDATE: The Panorama programme and its portrayal of the meeting with our team was exceptionally misleading. Our team was asked specific questions about how carbon neutrality certification is achieved. Our response described this certification and its significant flaws. This description was then misrepresented as our advice. Indeed, we advocated for the SBTi’s Corporate Net-Zero Standard instead, which requires a minimum of 90% emissions reduction before a net-zero claim can be made. This part was edited out. We did not and do not advocate carbon neutrality. We have never offered carbon neutrality ‘badges’ or certification.
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A little over two weeks ago Ecologi was contacted by a production company working on a BBC Panorama investigation, airing later this week around “the economics of the carbon credit market; the work of carbon credit developers and whether brands which buy certain types of carbon credits can credibly say they will reach net zero.”
Though we have not yet seen the documentary, we anticipate that Ecologi will feature in it, amongst other companies. We have decided to take the initiative and publish the correspondence received from the production company and our responses in full (<a href="#correspondence">see the end of this article</a>), in addition to providing a summary of our perspective on the subject matter here on our blog.
At Ecologi, trust and transparency is core to who we are. Today we would like to ensure that our community is aware of the key facts before the programme airs as well as providing an update to this page after the programme airs.

<h2>Are the projects Ecologi supports really high-quality?</h2>
In their correspondence with us, the production company questioned the quality of the projects we have funded over time. We rebutted each of their assertions, and reiterated our confidence in the quality of the projects that are eligible to be funded through Ecologi.
The criticisms from the production company relied on the West et al study <a href="https://www.sylvera.com/blog/guardian-offsets-response" target="_blank" rel="noopener">which was roundly debunked</a> by industry experts last year. Even if all of the study’s assertions about the relevant projects were correct (which we refute), this would represent only 4% of all the funding Ecologi has provided to impact projects since our inception in 2019. This translates to a 96% “success rate” which is still top-tier. 
We also noted that when it comes to funding projects, certain projects that were historically funded by Ecologi would not be eligible for funding today, given that our quality standards have improved over time. It is important to note that even if a project no longer meets our quality standards, this does not imply that the project has achieved zero carbon avoidance or other benefits, rather, according to our latest analysis, it simply no longer falls at the top-end of the quality spectrum we seek moving forward.
We did acknowledge that the full list of projects displayed on the Ecologi website included both those eligible for funding today, and those which were funded historically but may no longer meet our eligibility criteria. To improve our website’s clarity, we have since made the relevant updates.

<h2>What about carbon neutrality and net-zero?</h2>
In their correspondence with us, the production company made various incorrect statements about how the use of carbon avoidance credits is insufficient for carbon neutrality certification. Carbon avoidance credits are indeed a component of carbon neutrality certification under the industry <a href="https://www.bsigroup.com/en-GB/capabilities/environment/pas-2060-carbon-neutrality/" target="_blank" rel="noopener">PAS 2060 Standard</a>. 
Nevertheless, as we explained to the production company in person and in our written correspondence, Ecologi has never provided a carbon neutrality certification. Furthermore, <a href="https://ecologi.com/articles/blog/carbon-neutral-vs-net-zero-whats-the-difference" target="_blank" rel="noopener">in 2021 we made the decision to support</a> corporate endeavours towards the SBTi Net-Zero Standard instead of the carbon neutrality standard, because the former requires &gt;90% emissions reductions across all scopes, before the organisation is eligible to make its net-zero claims.

<h2>What’s going on with the SBTi and the net-zero standard?</h2>
In recent weeks, there has been much analysis and speculation about the Science-based Targets initiative (SBTi) corporate sustainability standards and carbon markets. This has included <a href="https://sciencebasedtargets.org/news/statement-from-the-sbti-board-of-trustees-on-use-of-environmental-attribute-certificates-including-but-not-limited-to-voluntary-carbon-markets-for-abatement-purposes-limited-to-scope-3" target="_blank" rel="noopener">the recent announcement</a> from the Board of Directors of the SBTi about the upcoming routine revision to their Corporate Net-Zero Standard. In that statement, the Board of Directors referred to the possibility for the updated Standard to allow businesses to use carbon credits to work towards their Scope 3 emissions reduction targets. Controversy ensued after this announcement, which we expect may be raised in the BBC Panorama documentary.
We understand the impetus behind exploring the option to allow certain businesses (under strict criteria, which are yet to be defined) to use credits for limited scope 3 abatement in particular circumstances; for some businesses scope 3 emissions are very hard to measure and harder still to meaningfully reduce. We also understand that some will be concerned that allowing the use of carbon credits for scope 3 abatement will lead to organisations attempting to ‘offset’ their way out of emissions culpability. Yet, multiple studies have shown that the opposite is true, and that organisations buying carbon credits tend to be those taking the most accountability for their own emissions (see <a href="https://www.sylvera.com/resources/carbon-credits-and-decarbonization" target="_blank" rel="noopener">here</a>, <a href="https://www.ecosystemmarketplace.com/articles/new-research-carbon-credits-are-associated-with-businesses-decarbonizing-faster/" target="_blank" rel="noopener">here</a> and <a href="https://trove-research.com/report/corporate-emission-performance-and-the-use-of-carbon-credits" target="_blank" rel="noopener">here</a>). 
Another concern could be that if poor-quality credits are used for Scope 3 abatement, then the net effect of allowing these credits to be used may mean that emissions are not prevented at all. Albeit possible, we assume that this would be at least partially accounted for in the “specific guardrails and thresholds as well as the rules to be applied” when the SBTi updates the Standard. Organisations such as Ecologi are dedicated to using the latest data to support businesses to easily identify and fund the higher-quality projects on the market.
We welcome the fact that standards-setters are constantly iterating and developing their Standards to ensure they are clear, up-to-date, and reflect the latest science and best practice. We believe that standard-setters need to be transparent, and follow appropriate governance principles, all while being led by science. Regardless of the outcome of the upcoming SBTi’s Corporate Net-Zero Standard update, businesses need clarity on best practice so they can be confident that they are taking the right steps, and communicate externally about the action they are taking in the right way.
For our part, we want to reassure businesses that there are (and will remain) two core imperatives for businesses in taking climate action:
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<li style="font-weight: 400;" aria-level="1">To reduce emissions as much as possible, as fast as possible, within the value chain; and:</li>
<li style="font-weight: 400;" aria-level="1">To contribute funding to projects globally (‘beyond’ the value chain) that mitigate climate change and contribute to sustainable social and economic development.</li>
</ol>
As of now, instruction from the SBTi under the Net-Zero Standard has not changed, and the organisation has also recently released <a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener">a helpful guide to beyond value chain mitigation (BVCM)</a>. We also have our own articles for businesses about:
<ul>
<li style="font-weight: 400;" aria-level="1"><a href="https://ecologi.com/articles/blog/carbon-offsetting" target="_blank" rel="noopener">How to think about funding projects as contributory rather than compensatory</a>,</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://ecologi.com/articles/blog/go-above-and-beyond-during-your-net-zero-journey-explaining-beyond-value-chain-mitigation" target="_blank" rel="noopener">How to approach designing a BVCM strategy</a>,</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://ecologi.com/articles/blog/carbon-removals-vs-carbon-avoidance" target="_blank" rel="noopener">What the differences are between different types of projects</a>,</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://ecologi.com/articles/blog/funding-carbon-credits" target="_blank" rel="noopener">How to spot a great carbon project</a>, and:</li>
<li style="font-weight: 400;" aria-level="1"><a href="https://ecologi.com/articles/blog/how-can-businesses-avoid-greenwashing" target="_blank" rel="noopener">How to avoid greenwashing</a>.</li>
</ul>
Ecologi will continue to support businesses to measure and manage their emissions, as well as help them to make informed decisions about how to approach funding climate action. We are very excited about the new product launches we will be rolling out later this year to even better support businesses in high-integrity climate action.

<h2>Closing thoughts</h2>
We agree that there is always room for improvement for ourselves and for others in the industry. We acknowledge that the past few weeks have presented a difficult and turbulent time in corporate sustainability, as Standards-setters grapple with harmonising their approaches. We always have and always will welcome industry scrutiny, because it provides an incentive for the market as a whole to improve its standards. 
In our recent <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">Climate Commitments survey</a>, 76% of businesses surveyed are putting sustainability at the heart of their strategy. We deem this positive direction at risk with media narratives making business leaders question whether sustainability and climate action should be a priority worth the risk. Nearly one third (29%) of businesses are either worried about greenwashing or only communicate their claims internally, and one fifth of businesses don’t make any sustainability claims at all for fear of greenwashing. We can not let reductive criticism of the industry from poorly-informed commentators result in greenhushing &#8211; where businesses become afraid and either downplay their sustainability initiatives, or refrain from taking any action at all.
The carbon market is a vital tool in the fight against climate change. It is an effective mechanism to provide financing to impactful projects around the world that would otherwise not exist today. We believe it is crucial to prioritise high-integrity progress over perfection as we collectively aim to limit warming to as close to 1.5ºC as possible. 
Our business has been built on trust and transparency over many years because of our high standards, due diligence and openness with our current and future customers. We will continue to share our perspective as the conversation develops. I thank you for supporting Ecologi as your climate action partner of choice.
Warmest regards,
Dimitri Theocharis 
CEO, Ecologi

<h3>Read the correspondence between DM Productions and Ecologi </h3>
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Climate Commitments Survey 2024

Our Climate Commitments 2024 report surveyed 1,400 business owners and decision-makers to businesses with 1-1,000 employees spanning all regions of the UK and 28 professional sectors. 
There were three clear themes that emerged this year. Despite the continuing economic downturn, businesses are still making sustainability a core part of their strategy and reaping the benefits. Whilst more and more businesses are starting their net-zero journey the majority are not on course to hit their targets by 2050. Key barriers around investment, time and tools still remain as well as a lack of government support to accelerate the transition to the net zero economy.
<h3>Read the full report </h3>
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 📁 Download the PDF report <a href="https://cms-assets.offset.earth/app/uploads/20240415131731/Climate_Commitments_Survey.pdf" target="_blank" rel="noopener">here</a>

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<h3>1. Despite the continuing economic downturn, businesses are making sustainability a core part of their strategy and reaping the benefits.</h3>
76% said becoming more environmentally sustainable is a core business strategy for their organisation in 2024.
Despite the current cost of living crisis nearly two thirds (64%) say that the economic downturn is having a positive or no impact at all on their sustainability commitments with only a third (29%) saying it is having a negative impact. As a result 81% are planning on either increasing or maintaining their investment in sustainability initiatives.
Changing business practices are wide-ranging and have seen nearly half of respondents increasing rates of recycling (49%) or reducing energy consumption (48%) while over a third (37%) have taken the step of using ‘greener’ suppliers and products, been educating employees on best practices to reduce climate change (35%) and increased their use of renewable energy (35%).
For the two thirds of businesses (63%) who have set sustainability targets, they are reporting multiple business benefits. These range from improved brand reputation (34%), reduced costs (31%), increased productivity and/or innovation (30%), attracting more eco-conscious customers (28%), employee loyalty and/or motivation (28%), competitive advantage (22%) and increased revenue and/or market share (22%).

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<h3>2. More and more businesses are starting their net-zero journey but are not on course to hit their targets</h3>
72% of businesses have either measured their footprint consistently over the past few years (35%) or in the last year (37%) demonstrating the momentum in the first step on a net-zero journey.
Around a third have calculated their carbon footprint (30%), set emissions reductions targets (35%), achieved emissions reductions (30%) and funded climate action (35%) but less than a third (27%) were on track to reach net-zero by 2050 or sooner.
Businesses still recognised the role of carbon offsetting as an effective way for businesses to contribute to global climate action (21%) when used as part of a wider strategy (17%) after reducing emissions as much as possible (17%). Funding tree planting still tops the list as businesses’ number one favoured climate action solution (46%), followed by renewable energy (38%), habitat conservation &amp; restoration (37%), rainforest conservation (32%) and carbon dioxide removal (31%).

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<h3>3. Barriers around investment, time and tools still remain, as well as a lack of government support.</h3>
Over a third of UK businesses cited financial constraints (32%), the cost of tools or technology (28%), lack of government support in the form of incentives (25%), time constraints (25%) and the lack of the ability to measure their carbon footprint (20%). 
The business sector is calling out for more support from the government.  Nearly eight in ten (79%) of UK businesses feel that the government should provide more support to improve their environmental affairs, three quarters (76%) feel that the government investing in the green economy would be good for business, creating jobs and lowering their running costs while 73% feel more government support is key to their business increasing its sustainability targets.
With less than half (49%) of businesses yet to apply for government funding to make their business greener there’s a clear desire for more funding (45%) and incentives (44%) to be made available as well as clearer information (40%) on how to access these.

<h3>Businesses can lead the sustainable revolution</h3>
Ecologi remains committed to supporting businesses on their climate journey through our all-in-one platform allowing organisations to calculate their carbon footprint, set targets and reduce their emissions whilst funding high quality climate action projects. Our mission is to inspire and empower businesses to accelerate global climate action.
We’re trusted by over 20,000 businesses. Why not add yours to the list? If you want to make your business greener, better, faster, stronger, speak to our expert team.
You can access the full data set <a href="https://docs.google.com/spreadsheets/d/e/2PACX-1vR2QZj3JAUk_f4suOMmd653C6AEiytUp_T5WhBnUOypIkW9Wf9yT61C9TzQ4_GMwQ/pubhtml" target="_blank" rel="noopener">here</a>

Carbon removals vs. carbon avoidance: what’s the difference?

More posts

Case study: How SmartestEnergy Business is engaging businesses and consumers around sustainability

Our response to the upcoming BBC Panorama Investigative Documentary on Carbon Markets

Climate Commitments Survey 2024

Stay in touch with Ecologi