Carbon Credits vs Carbon Offsets
At its broadest the two terms are defined as followed:
- Carbon offsets are a way to reduce the level of greenhouse gases in the atmosphere by paying money to a company that works to reduce the total amount of greenhouse gases in the world, for example by planting trees
- Carbon credits are a unit used in carbon trading that represents the right of a business, factory, etc. to release 1,000 kilograms of greenhouse gases into the environment
In other words, carbon offsets represent the removal of greenhouse gases from the atmosphere, where as carbon credits represent the right to emit a certain amount of greenhouse gases.
How Offsetting Works
Emissions are generated
From our day-to-day activities including driving and more
Credits are purchased
Emissions are calculated and credits are purchased for retiring
Projects are funded
Such as carbon capture or clean energy generation or reforestation and more
Vehicle is carbon neutral
Credits are retired and your vehicle is now carbon neutral for offset distance
Buying a voluntary carbon credit provides an impactful way to compensate for your vehicle's emission.
Your purchase of a voluntary carbon credit creates a direct connection to real projects around the world that are changing lives and reversing nature loss while at the same time advancing both climate and sustainability targets.
The nature-based credits that a project issues can provide life changing incomes to rural communities which transform their natural assets, such as a forest, into a revenue generating asset.
This also creates a revenue stream which enables a project to plan with certainty into the future and transform the scale of the investment, therefore contributing to the project's enduring efforts and its permanence.
How Does Net-Hero Offsetting Work
As one of the leading carbon offsetting companies for car carbon credits Net-Hero follows the same fundamentals as above.
How do we make sure our projects are of the highest quality? We have partnered with one of the leading ratings agencies for the carbon market - BeZero Carbon.
They make sure all of our projects are of the highest possible standard. In fact, offsetting with Net-Hero's portfolio is the highest possible level of quality:
And what's more £1 from every tonne offset goes to our chosen charities respectively
BeZero’s credit portfolio achieves an AAA+ rating by retiring more than 1 offset credit per tCO2e claimed. The weighted average rating across the recommended portfolio by project is AAA-.
This portfolio is equivalent to 500 tCO2e based on BeZero’s project scores in our ratings framework; 662 credits will be purchased.