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We know that funding high-quality carbon credits provides vital funding to impactful projects <a href="https://www.ipcc.ch/2023/03/20/press-release-ar6-synthesis-report/">which prevent and avoid emissions</a>.
However, it’s vital to look at the bigger picture: how carbon credits are being used is critical in taking meaningful climate action for our planet.
Simply using carbon credits to offset our business-as-usual emissions (often referred to as becoming ‘carbon neutral’) without taking steps to reduce those emissions directly <a href="https://wedocs.unep.org/bitstream/handle/20.500.11822/40875/EGR2022_KR.pdf?sequence=3">will not solve climate change</a>. In addition, there’s increasing pressure on businesses following recent crackdowns on green claims, such as <a href="https://www.theguardian.com/environment/2023/may/15/uk-advertising-watchdog-to-crack-down-on-carbon-offsetting-claims-aoe">claiming ‘carbon neutrality’ through offsetting alone</a>. So, across our industry, we need to rethink carbon offsetting completely, from the ground up.
Let’s unpack this.

Offsetting to compensate for business-as-usual emissions is OUT

Science is clear that minimising global warming requires substantial emissions reductions globally. The IPCC has called for <a href="https://www.ipcc.ch/sr15/chapter/spm/">50% reductions in emissions by 2030</a>, and global net-zero emissions by 2050, if we are to limit the global temperature increase to below 2°C, and as close as possible to 1.5°C. Every year that we continue to increase emissions, the steeper the curve needs to be for the world to decarbonise in time, 
Traditional carbon offsetting involves paying for carbon credits, each representing one tonne of emissions reduced or avoided by a project (like a solar farm). To offset, you would produce one tonne of greenhouse gas emissions through your business activities, and then offset that tonne by buying a carbon credit. 
However, traditional offsetting also gives free licence to businesses to continue generating emissions, or even increase them! Provided that they are also paying to offset them. You can see this in the visual below.
<img loading="lazy" class="aligncenter size-full wp-image-7760" src="https://cms-assets.offset.earth/app/uploads/20230516164950/COP27-Net-Zero-Pathway-Workshop.png" alt="" width="960" height="540" srcset="https://cms-assets.offset.earth/app/uploads/20230516164950/COP27-Net-Zero-Pathway-Workshop.png 960w, https://cms-assets.offset.earth/app/uploads/20230516164950/COP27-Net-Zero-Pathway-Workshop-300x169.png 300w, https://cms-assets.offset.earth/app/uploads/20230516164950/COP27-Net-Zero-Pathway-Workshop-768x432.png 768w" sizes="(max-width: 960px) 100vw, 960px" />
Even when businesses fund high-quality projects and offset their emissions in full, those direct emissions are still taking place. The benefits of avoided emissions are effectively cancelled-out if the projects funded are only being used to offset your business’s continued emissions. The same is true, even if you are doing your offsetting with carbon removal credits &#8211; because the climate impacts of emitting and then removing greenhouse gases are not the same as simply not emitting them.
This is unsustainable. We need to reconsider completely the way we think about offsetting.

Reducing emissions whilst committing to fund high-quality climate‌ action is IN

For businesses to align their operations with <a href="https://www.iema.net/articles/ghg-management-hierarchy-updated-for-net-zero.">the science of climate change</a>, making direct emissions reductions <a href="https://ecologi.com/articles/blog/charting-the-path-to-net-zero-for-businesses">across your supply chain is paramount</a>. That’s a separate process, which offsetting doesn’t contribute toward.
Funding impactful projects through carbon credits still has a huge role to play. The SBTi (Science Based Target initiative) deems <a href="https://sciencebasedtargets.org/blog/net-zero-urgent-beyond-value-chain-mitigation-is-essential">funding carbon credits as an &#8220;essential&#8221; step</a> in the journey towards global net-zero. 
Supporting these high-quality carbon avoidance projects (that’s the same kinds of projects which are traditionally used for offsetting) is a perfect entry point for businesses to start their climate journey &#8211; whilst these businesses gather their plans to reduce their emissions directly.

Reducing your business emissions is a marathon, not a sprint

One of the SBTi’s core requirements for a business to achieve net-zero is to achieve a <a href="https://sciencebasedtargets.org/net-zero">minimum 90% reduction in emissions in most sectors</a>. This emissions-reduction journey will not be easy, since that’s a BIG task!

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Imagine having to reduce your financial budget by 90% &#8211; it would require a lot of planning, researching, and implementation, over a long period.

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Near-term targets are going to be crucial to break down those larger long-term goals. SBTi <a href="https://sciencebasedtargets.org/reports/sbti-progress-report-2021">research in 2021 showed that</a> if your business had set its science-based targets that year, you would need to make emissions reductions of just 4.2% per year &#8211; a much more understandable and manageable target for most businesses.
Remember as well that, even if simply offsetting your business emissions was your goal, then the higher your emissions are, the more it will cost to your business to offset them. This means that whilst there’s an enormous challenge in reducing emissions over a sustained period, it will be much better in the long run, both for your business and for the planet.

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This is a long-term commitment which all businesses need to undertake. That’s why funding high-quality climate action is crucial at the same time. You can give back to our planet throughout the process &#8211; and by doing so, you can have a real, measurable impact <a href="https://sdgs.un.org/goals">on people, communities and biodiversity</a>.

High-quality climate action that ‘goes beyond’

This funding of high-quality climate action outside of a business’s operations is referred to by the SBTi as ‘<a href="https://sciencebasedtargets.org/blog/going-above-and-beyond-to-contribute-to-societal-net-zero">beyond value chain mitigation</a>’ or ‘BVCM’. They highlight this as a critical contribution to reaching societal net-zero because it has a positive climate impact outside of your business’s direct sphere of influence. Your company can leverage its BVCM strategy to generate positive global change for our planet.
The great thing about BVCM is that it allows your business to select project types and locations that matter to you: you can build your own mix of projects to support.

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Don’t be put off by the scientific terminology. Simply, it means continuously funding climate action via high-quality carbon avoidance credits (and other types of impactful climate projects) whilst reducing your business emissions on your journey to net-zero.

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At Ecologi, we select the carbon avoidance projects we support according to our<a href="https://ecologi.com/articles/updates/how-ecologi-finds-and-funds-the-most-impactful-climate-solutions"> climate impact regionalisation strategy</a>, which focuses on directing funding towards locations and projects with the greatest potential impact.
This approach allows our in-house team to identify which, out of the ~200 quotes for carbon credits we review every month, are the most impactful.
The projects we support &#8211; which you can fund through <a href="https://ecologi.com/impact-shop">our Impact Shop</a> or through <a href="https://ecologi.com/business/integrations">our automations and integrations</a> &#8211; are also independently scrutinised by organisations like our friends at <a href="https://www.sylvera.com/">Sylvera</a>.

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Reframing carbon offsetting in a way that makes a real difference

Don’t let your business fall into the trap of thinking that buying carbon credits gets you off the hook by compensating for emissions which you haven’t attempted to reduce. That way of thinking is all wrong.
<a href="https://sciencebasedtargets.org/net-zero">The net-zero pathway</a> allows you to fund carbon removal credits to ‘offset’ your unavoidable emissions. However, you need to reduce your emissions as much as possible first, and only use removals for up to a maximum 10% of your initial emissions, and it has to be carbon removal, which is very expensive!
Think about your BVCM as funding climate action, full stop. It’s not about compensating to let your business keep producing emissions. It’s just one cost of running a responsible business, whilst you work to reduce your emissions directly. 
Don’t think about it in the context of letting your business carry on emitting as it was before &#8211; because that won’t contribute toward solving the climate crisis.

How to take the first step on your climate journey

Every business is different, and that means that although reducing emissions is vital, funding climate action might be the most suitable entry point for you, on your climate journey.
Through Ecologi, you can do this and more:

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Speak to our friendly team of experts to find the right climate solution for your business and for our planet

<h2>Watch our talk: The way we think about carbon offsetting is all wrong</h2>
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What's happening at COP29

This year’s Conference of the Parties is underway in Baku, Azerbaijan and will run until the 22nd of November. Our team at Ecologi are monitoring the daily events to give you real-time analysis and reactions to the developments and agreements taking place. 
What is COP29? Click <a href="https://ecologi.com/articles/uncategorised/what-to-expect-at-cop29" target="_blank" rel="noopener">here</a> for a comprehensive guide to all things COP29. 
What happened at COP28? Click <a href="https://ecologi.com/articles/blog/whats-happening-at-cop28" target="_blank" rel="noopener">here</a> to read a full report of the event in 2023.

COP29 - Daily updates 

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The two-week conference, scheduled for November 11th-22nd will bring together representatives from all countries that have agreed to be bound by the UNFCCC. The conference takes place annually to negotiate new measures, develop policy and review progress against the goal of limiting climate change.
Azerbaijan, the host nation, has received its fair share of criticism for becoming this year’s COP president. Oil and Gas make up 92.5% of the country’s GDP per capita, and President Ilham Aliyev has stated his support for oil and gas producing nations to continue investing in the sector, clashing with last year’s COP28 outcome in which all nations called for accelerating the transition away from fossil fuels.

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<h2>The key talking points and priorities in the run up to COP29</h2>
This year, priorities are focused on climate finance, with COP29 being coined the Finance COP, this is reiterated by the programme of scheduling with Finance, Investment and Trade taking priority spot on the first day of discussions.
Energy and Science are also high on the agenda, while Nature and Biodiversity and Oceans and Coastal Zones take more of a back seat, only being scheduled for the final day before negotiations; naturally, this comes as a disappointment as this signals these areas of discussion are considered lower priority when compared with energy and finance.
It is likely momentum and attendance will decrease by the end of week two and could undermine the urgency needed to address the implications of climate change on nature globally and reduce their integration into wider climate strategies.
The following key priorities are expected to lead discussions at COP29;
<h3>New Collective Quantified Goal (NCQG)</h3>
Developing countries, particularly those most vulnerable to climate change, require substantial financial support to transition to green economies and adapt to climate impacts. COP29 aims to agree on a new commitment to provide annual climate finance to developing countries, replacing a goal of $100 billion per annum set in 2009 at COP15. The World Economic Forum states that ‘the NCQG must be ambitious yet realistic, balancing the financial capacities of developed countries with the urgent needs of developing nations’.
<h3>Growing the loss and damage fund</h3>
Established and operationalised at COP27 in Sharm El-Sheikh, the loss and damage fund acknowledges the disproportionate burden that climate change places on vulnerable nations. It is a financial mechanism that helps countries cope with the loss and damages they face due to climate change – this includes loss of life, damage to infrastructure and displacement.
At COP29, there is hope to see significant progress in the fund’s operationalisation and funding. Countries are expected to make substantial pledges to the fund to ensure it can meet the needs of developing countries. To date, major contributors include the UAE, Germany and the United States. Other big-emitting countries such as China and Saudi Arabia are yet to announce their intention to contribute to the fund.
<h3>Nationally Determined Contributions (NDCs)</h3>
At COP29, nations will be encouraged to commit to more ambitious and robust Nationally Determined Contributions; these are climate action commitments made by countries to reduce their greenhouse gas emissions and contribute to climate change mitigation, aligning with the goal of limiting global warming to 1.5 degrees Celsius.
NDCs are submitted every 5 years to the UNFCCC, and with the next global stocktake approaching NDCs are to be put forward by February 2025, demonstrating increased ambition and concrete action plans. At COP29, there is likely to be a push to provide financial and technical support to developing countries to enable them to outline and implement NDCs of their own.
<h3>Article 6 of the Paris Agreement</h3>
Article 6 of the Paris Agreement aims to promote the use of carbon markets to achieve their climate targets. At COP29 we can expect discussions with regards to how a robust and well-regulated international carbon market can be developed and maintained. A key goal of COP29 is to finalise the rulebook for Article 6, which will provide clear guidelines for its implementation, and address concerns with regards to the quality of carbon credits, double counting and sustainable development.

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<h2>Who is attending COP29</h2>
With just 2 months to go until COP29 kicks off, there has been minimal discussion with regards to which World Leaders we can expect at the event.
From the UK, Ed Miliband, the newly appointed Secretary of State for Energy and Net Zero, is confirmed to be leading UK negotiations for COP29. However, with the USA election taking place just 5 days before COP29 begins, it is unlikely that the President will be in attendance. As the event draws closer, we can expect more countries to confirm which delegates will attend.

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<h2>What to expect during COP29</h2>
An anticipated 40,000 participants are heading to COP29, almost half the number of attendees than at <a href="https://ecologi.com/articles/blog/whats-happening-at-cop28" target="_blank" rel="noopener">COP28</a> in Dubai last year; this poses the question of if bigger is necessarily better, fewer attendees reduce the environmental impact of the conferences, with the UN Climate Chief Simon Stiell <a href="https://www.climatechangenews.com/2024/04/24/peak-cop-un-looks-to-shrink-baku-and-belem-climate-summits/" target="_blank" rel="noopener">saying he hopes to see fewer people attending COPs </a>as size does not necessarily translate to the quality of outcomes.
COP29 still presents a crucial opportunity to make significant strides in climate action, by focusing on climate finance and reaffirming climate goals, countries can collectively work together to provide the funding and tools necessary to shape the trajectory of global climate efforts.

<h2>Partner with us for COP29 and beyond</h2>
Over the next 12 months we want to support as many businesses as possible to tackle climate change.
If your business is interested in a partnership to help scale climate action or starting its climate journey during COP29 or beyond, get in touch.

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

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Before and after: See how your climate action is making a difference

Before and after: This is how your Ecologi impact is transforming landscapes and lives.

We love a before and after shot at Ecologi. They&#8217;re an incredible way to show the impact of the projects supported by our community. Whether it’s deforested land turning back to verdant green, or solar projects springing to life, sometimes two simple images are worth a thousand words.
On this blog you’ll find snapshot images that paint pictures of the difference our supported climate projects are making, all around the world. Thank you to our community for making it all possible! 
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📍 Location: Ouarzazate, Morocco
⌛ Dates: 2015 –2020
🌱 Project: Verified Carbon Standard
🌳 Type: Solar energy

Morocco

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From a bare area of desert to a haven of clean energy. The Ouarzazate II solar project is a major milestone in Morocco&#8217;s journey towards a clean energy future. It is one of the largest concentrated solar power plants in the world and is expected to supply around 500 GWh per year to Morocco’s power grid.
The project uses thousands of concave mirrors to concentrate solar energy and generate electricity, which can be stored for up to 7 hours. This allows the project to continue generating electricity even after the sun sets.
The Ouarzazate II solar project supplies electricity to nearly 2 million Moroccans and will prevent emissions equivalent to 300,544 tCO2e per year over its 10 year crediting period. The project has also created around 7,000 local jobs and incorporated co-projects that promote the creation of cooperatives, educational opportunities, and skills training.
Learn more about this<a href="https://ecologi.com/projects/morocco-solar"> project</a>.

📍 Location: Brodoclea, North Ayrshire, Scotland
⌛ Dates: 2018 –2021
🌱 Project: Future Forest Company
🌳 Type: Temperate reforestation

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Nestled in North Ayrshire, Brodoclea is a sprawling 174-hectare haven of broadleaf woodland that plays host to woolly pigs, the incredible ecological restoration engineers! 
Under <a href="https://thefutureforestcompany.com/">The Future Forest Company</a>&#8216;s guidance, these pigs awaken the soil seed bank, nourish soil microbiology, create space for sapling growth, reduce competition, and form pondlets for breeding amphibians and invertebrates. This enriches the ecosystem, offering sustenance for birds and materials for nests. 
Since 2018, the Ecologi community has helped make a significant impact on this site, funding the planting of 56,170 trees, with a focus on native broadleaf species including oak and birch, creating important habitat for local invertebrate and bird species.

📍 Location: Belavenika, Madagascar.
⌛ Dates: 2019 –2022
🌱 Project: Eden Reforestation Projects
🌳 Type: Mangrove reforestation

Madagascar

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Madagascar’s mangroves are amazing habitats that, sadly, have been deforested over the years and become degraded. This project is one of three currently being supported by the Ecologi community that are replanting mangroves in Madagascar to bring benefits to local biodiversity and communities.
Creating new sustainable income streams for local people is a key component of the project, as is female empowerment. The project employs an average of 85 people per month, with female employees making up approximately 37.5% of the workforce in 2022.
As a result of their involvement in this project, local people are now able to purchase more nutritious food, leading to improved health, and can afford to send their children to school.
To date, the Ecologi community has funded 7.9 million trees on this site in north-west Madagascar.
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📍 Location: Marotaola, Madagascar.
⌛ Dates: 2019 –2022
🌱 Project: Eden Reforestation Projects
🌳 Type: Mangrove reforestation

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This was the very first project we supported, so it holds a special place in our hearts. Seeing its progress over the last four years has brought us so much joy! 
Native mangrove species are being planted on this site, including Avicennia marina, Rhizophora mucronata, and Ceriops tagal. To date, the Ecologi community has funded the planting of over 10 million trees here, and there’s room for another million. 
This site is particularly fascinating as the mangroves are only separated from the open ocean by a thin strip of sand about 100m wide. Despite being more exposed to the ocean, mangroves that have successfully become established are growing well, creating an important habitat for coastal biodiversity and protecting the coastline from erosion by the waves.
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📍 Location: Vĩnh Hảo, Tuy Phong District, Bình Thuận, Vietnam
⌛ Dates: 2018 –2023
🌱 Project: Verified Carbon Standard
☀️ Type: Solar

Vietnam

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Vietnam&#8217;s demand for energy has been rising sharply since the 1990s, and it’s a demand that the country has struggled to fulfil, with an overreliance on coal and frequent power outages.
This project, in the Vinh Hao commune, Vietnam, is generating electricity using photovoltaic technology, which transforms sunlight into electricity. The project is on around 60ha of salt farm, and will generate 83,750MWh of power annually.
Local people have been involved throughout the design phase and operation of the project. The construction process of the project was carefully managed to minimise the impact on the local environment. During the operation of the project, pollution will also be minimised through a series of measures, including ensuring no littering takes place, and waste materials will be responsibly disposed of off-site.
Over the 10-year crediting period, the project will prevent 704,110tCO2e from being emitted by replacing energy in the grid that would otherwise have come from fossil fuels.
The project has given a real boost to the living standards of local communities through economic support funds: the commune gratitude fund in the Vinh Hao commune, and the learning promotion fund in the Binh Thuan province.
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📍 Location: Mount Elgon, Uganda. 
⌛ Dates: 2021 – 2023
🌱 Project: Trees for the Future
🌳 Type: Reforestation and sustainable agroforestry

Uganda

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Trees for the Future’s innovative Forest Gardens approach is all about engaging farmers in reforestation and sustainable agroforestry. The farmers take part in a 4-year programme, learning the skills they need to better manage their land. This brings multiple benefits, including protected crops, stabilised soils, and habitats for pollinators, as well as increasing household incomes.
Over the past two years, the Ecologi community has funded the planting of 766,663 trees in Forest Gardens through this project. Three hundred farmers (57% of whom are women) are involved, with 3,522 people benefitting from the project so far. 
Pictured is 56-year-old Philister Khana, a farmer enrolled in the programme. In just two years she’s taken the number of trees on her plot from 4 to 2,001!
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Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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Hopescrolling: The good news timeline

It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.

The way we think about carbon offsetting is all wrong

Offsetting to compensate for business-as-usual emissions is OUT

Reducing emissions whilst committing to fund high-quality climate‌ action is IN

Reducing your business emissions is a marathon, not a sprint

High-quality climate action that ‘goes beyond’

What makes a project high-quality?

Reframing carbon offsetting in a way that makes a real difference

How to take the first step on your climate journey

More posts

What is happening at COP29

Before and after: See how your climate action is making a difference

Hopescrolling: The good news timeline

Stay in touch with Ecologi