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Carbon Offsetting

Carbon offsetting was introduced by United Nations (UN) linking the carbon market with sustainable development introduced in Kyoto protocol in 1997. The concept is related with the reduction or removal of atmospheric carbon emissions in private or public organizations.

Use of existing compliance or voluntary mechanisms for carbon offsetting can facilitate the achievement of net zero carbon emission hotels allowing the offsetting of any remaining carbon emissions in them at affordable cost.

Offsetting carbon emissions

Offsetting carbon emissions can private organizations, including hotels to achieve the net-zero carbon emissions target. Hotels after reducing their energy consumption and replacing part of fossil fuels used with renewable energies can offset any remaining carbon emissions purchasing carbon credits from carbon emission trading schemes. Offsetting carbon emissions is an additional tool for companies to achieve climate neutrality and the climate change mitigation targets. The concept of offsetting carbon emissions with three mechanisms was firstly proposed by UN under the Kyoto protocol in 1997. 

The mechanisms for carbon offsetting

These three mechanisms are: a) the clean development mechanism (CDM), b) the joint implementation (JI), and c) the emissions trading (ET).  The first two are related with development of projects while the third is related with carbon emissions trading. Clean developing mechanism is related with the implementation of an emission-reduction project in developing countries.  Joint implementation is related with the investment of a clean energy project in another country. Emissions trading is related with carbon emissions exchanging.

Offsetting carbon emissions in hotels

Hotels should first estimate their annual carbon emissions and then choose a climate project to offset their emissions. This can be done through specialized companies which offer the possibility of carbon offsetting.

Climate projects reduce, avoid, or remove greenhouse gases from the atmosphere. This is achieved, for example, through the development of renewable energies, forest protection or reforestation, social impact projects such as clean cooking stoves or drinking water, or other technologies. The effect is verifiable and is calculated in ton of CO2. Therefore, by supporting climate projects, you contribute to financing global climate action. 

Climate projects are certified according to international standards such as the Verified Carbon Standard (VCS) and the Gold Standard and are regularly audited by independent third parties. This makes climate projects an important instrument in the fight against climate change. 

Climate projects often facilitate a transition towards more sustainable technologies, thereby reducing emissions in the long term. They also promote sustainable development in the project regions, improve the local living conditions, or help conserve biodiversity.

The majority of climate projects are categorized as:

Projects related with Nature-based solutions 

  • Afforestation, forest protection, blue carbon, regenerative agriculture, improved forest management, et cetera. 

Projects related with green energy generation

  • Wind energy, solar energy, hydropower, biogas/biomass, geothermal energy, et cetera.