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Simple explanations for technical terms: Global Changemakers' Knowledge

Can we halt climate change? Can we achieve just, global development for all, which benefits rather than harms our earth? Yes, we can. With as much participation as possible.

Sustainability expert Janine Steeger offers simple, concise explanations of terms surrounding development and climate, from the 1.5-degree target to emissions balances and Agenda 2030. Videos that give us courage to act - and make everyone a little smarter. For more information on the topic (currently available only in German with English subtitles):

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What exactly is carbon dioxide removal (CDR)?

CDR encompasses a range of technologies and strategies aimed at extracting CO2 from the atmosphere.

Why is it important? The more CO2 we can remove from the atmosphere, the better we can mitigate global warming and reduce the impacts of climate change.

The measures include both natural processes and technological solutions. One example is reforestation and protecting existing forests, as trees absorb CO2 and store it in their biomass over the long term. Another example is direct air capture (DAC), a technology that captures CO2 directly from the atmosphere. The captured CO2 can then be stored or used, for instance, in the production of synthetic fuels or chemical products.

Many CDR technologies are still in development and face challenges such as high costs, limited scalability and potential environmental impacts. Therefore, CDR should not be seen as a replacement for reducing emissions at their source. Instead, it should be considered a complementary tool in the broader strategy for climate protection.

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What does decarbonisation actually mean?

Decarbonisation refers to the process of reducing carbon dioxide (CO2) in the atmosphere. Primarily, it focuses on minimizing emissions from fossil fuels such as coal, oil and gas. The goal is to accelerate the transition to a low-carbon economy to combat global warming and its severe consequences.

There are numerous strategies and technologies to achieve decarbonisation:

  • expanding renewable energy sources like solar, wind and hydropower,
  • improving energy efficiency in buildings, industries, and transportation,
  • and developing technologies for carbon capture and storage (CCS).

Why is decarbonisation so important?

Burning fossil fuels for energy, transportation and industry is the largest driver of climate change. It increases CO2 concentrations in the atmosphere, which in turn fuels global warming. To meet the Paris Agreement’s goal of limiting global temperature rise to well below 2°C, a radical reduction in these emissions is essential.

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What exactly is climate resilience?

Storms, floods and droughts: the global impacts of climate change are already being felt.

To address this, we must not only combat the causes of climate change but also protect ourselves against extreme weather events. Climate resilience refers to the ability of a system to adapt to changing climatic conditions, cope with them, and prevent future crises. Such a system could be a country, a region or even a business.

For example, to protect ecosystems and their populations, countries may construct dikes and dams or raise riverbanks to shield coastal communities from rising sea levels. They also work to raise public awareness of the risks posed by climate change.

Climate resilience can only be achieved if we take ambitious and coordinated global action to adapt to the consequences of climate change.

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How does it work?

Neutralisation involves the permanent removal and secure storage of CO2 from the atmosphere. This is primarily achieved through two main methods: geological storage and natural processes.

Geological storage utilises carbon capture and storage (CCS) technologies, where CO2 is directly captured from industrial processes and stored long-term in geological formations. These can include depleted gas fields or aquifers.

The other method uses the power of nature itself. Forests, soils, and other ecosystems play a key role in carbon sequestration through photosynthesis, a process that stores carbon and releases oxygen. Efforts like reforestation and the protection of natural ecosystems enhance this capacity.

Both approaches – geological and natural – work hand in hand and are crucial for reducing the CO2 burden on our atmosphere. Together, they represent a vital part of strategies to combat climate change effectively.

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What exactly does “net zero” mean?

“Net zero” refers to a state in which an organisation, country, or the entire world removes as much greenhouse gas from the atmosphere as it emits. The goal is to neutralise the impact of CO2 emissions on the climate. This can be achieved through a combination of:

a) Reducing emissions – for example, by improving energy efficiency and using renewable energy, and
b) Removing CO2 from the atmosphere – such as through reforestation or carbon capture technologies.

Net zero is a cornerstone of efforts to combat climate change, aiming to limit the rise in global average temperatures.

The English term “net zero” is also widely used in German and means the same thing: taking all possible measures to balance emitted and stored emissions, thereby halting global warming.

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Climate finance: already heard of it?

The climate knows no borders, and protecting it requires global cooperation – and funding. Unfortunately, many countries in the Global South lack the financial resources to reduce emissions, transform their energy systems, or adequately respond to the impacts of global warming.

In 1992, industrialised nations made the first legally binding commitment to support countries in the Global South in their fight against climate change. Through climate finance, sustainable development can be promoted, and the effects of global warming can be mitigated.

In addition to contributions from governments, organisations and businesses also voluntarily provide climate finance. This private funding is crucial for closing the financing gap in achieving the Sustainable Development Goals (SDGs) – the 17 goals set by the United Nations – and for ensuring sustainable development and global climate protection in the long term.

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What are climate agreements, and what are they meant to achieve? 

Climate agreements are international accords between nations aimed at combating climate change and mitigating its impacts. These agreements provide a shared framework to: 

  • reduce greenhouse gas emissions, 
  • promote adaptation to climate change, and 
  • enhance support for countries in the Global South. 

 They are founded on the recognition that climate change is a global issue requiring coordinated and collective action. 

The most well-known and significant climate agreement is the Paris Agreement. Adopted in 2015, it set the ambitious goal of limiting global warming to well below 2°C, preferably to 1.5°C. Under the agreement, countries commit to individual climate action plans, known as Nationally Determined Contributions, which are regularly updated and reviewed to ensure transparency and track progress. 

Through international cooperation, these agreements aim to promote a low-carbon future and strengthen resilience to the impacts of climate change. 

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What are the SDGs, and why are they important?

SDGs stands for Sustainable Development Goals. The 17 Sustainable Development Goals are concrete targets set by the United Nations to promote sustainable development worldwide by 2030. They cover a wide range of topics, including poverty reduction, healthcare, education and measures to protect the environment and climate.

The SDGs are a global roadmap for a better future. They aim to ensure that all people have access to the resources and opportunities they need to lead healthy and fulfilling lives, without neglecting the needs of future generations. They are closely interlinked and complement each other. They apply equally to all countries in the world.

Therefore, the SDGs are about effecting positive changes, some of which are mutually dependent. By achieving the SDGs, we are simultaneously protecting the climate and promoting development.

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What exactly is development cooperation?

Development cooperation aims to empower people to lead self-determined lives free from material hardship and to provide their children with a promising future. It contributes to the sustainable improvement of global economic, social, ecological and political conditions. It fights poverty while promoting human rights, the rule of law and democracy.

A key aspect of the term “development cooperation” lies in the word cooperation – working together. Industrialised nations and countries in the Global South collaborate to enable people in disadvantaged regions to take responsibility for shaping their own lives. This is a task for governments, particularly through development policies. Businesses, organisations and private individuals also play a vital role by engaging in partnerships to achieve the Sustainable Development Goals (SDGs).

Why do we do this?

Development cooperation is guided by humanistic values and works to secure a shared future. This is especially critical in an interconnected world: global cooperation is essential for driving the changes needed to ensure a sustainable future for generations to come. Moreover, development cooperation upholds fundamental human values such as justice and solidarity.

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What is Education for Sustainable Development?

The goal of Education for Sustainable Development (ESD) is to provide knowledge that empowers people to shape the world and its future sustainably. This means meeting the needs of everyone around the world and enabling them to develop their talents without compromising the stability of global ecosystems. The challenges we face in achieving this are vast: mitigating climate change, ensuring global food security and fostering fair globalisation. And the clock is ticking – we don’t have much time. Tackling these monumental tasks requires knowledge – knowledge that equips individuals to create a sustainable and just world.

To this end, the United Nations declared the Decade of “Education for Sustainable Development”. This initiative is a key driver of the 2030 Agenda and supports the achievement of the 17 Sustainable Development Goals (SDGs). From kindergartens and schools to universities; in vocational training, communities, associations, cultural institutions and businesses – ESD seeks to develop action-oriented skills, critical thinking and new perspectives. Its aim is to help people understand the global impact of their local actions and make responsible, sustainable decisions for today and tomorrow.

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What does the Contribution Claim approach mean for companies and other organisations?

In the fight against global warming, many companies and organisations have set climate protection goals, often focusing on achieving carbon neutrality. This means avoiding and reducing emissions along their value chain and offsetting remaining emissions through external certificates to achieve net-zero emissions.

The Contribution Claim approach is an alternative to the climate neutrality goal and the associated carbon offsetting. This approach allows companies and organisations to support ambitious climate projects without claiming the achieved emission reductions for their own climate protection balance. It is a voluntary, additional commitment that is not reflected in the emissions balance. But why should companies and organisations adopt this approach?

This method enables the support of projects that contribute to climate engagement in their respective countries or promote sustainable development beyond climate impact. Equally important is addressing the massive financial gap that needs to be bridged to achieve net zero greenhouse gas emissions globally by 2050, estimated in the hundreds of trillions of US dollars. Providing additional climate financing through the Contribution Claim approach is crucial for companies and organisations to fulfil their climate responsibility in line with the Paris Agreement and become pioneers in climate action.

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What is insetting and how does it differ from offsetting?

Offsetting involves supporting climate projects by measuring, avoiding, reducing and compensating for unavoidable emissions. This compensation is typically without a direct connection to the company’s supply chain.

Insetting, however, focuses on climate protection within the company’s own value chain, promoting a holistic transformation of established processes and practices. Insetting can enhance local biodiversity, water conservation, or product recyclability within the supply chain. Corporate social responsibility metrics are also considered. Thus, insetting represents a comprehensive approach impacting local ecosystems, communities and economic structures.

In summary, while offsetting compensates for emissions through voluntary climate actions, insetting aims for a deep transformation within the company, strengthening stakeholder relationships. Both approaches can be complementary, derived from the overarching goal of CO2 reduction and contributing to broad sustainability objectives.

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What are the co-benefits of climate action?

Co-benefits are the additional advantages that climate projects can bring to the project area beyond emission reductions. These include preserving biodiversity, improving air quality, or promoting sustainable technologies. Especially valuable are co-benefits that foster development in the Global South, aligning with the UN’s 17 Sustainable Development Goals (SDGs).

For instance, a project constructing small biogas plants not only positively impacts the climate and expands clean energy but also improves local living conditions. Women and girls no longer need to gather wood, saving time and resources that can be invested in education. This contributes to SDG 4: Quality Education. Additionally, avoiding deforestation protects terrestrial biodiversity. This example illustrates how sustainable development and climate action are interconnected through co-benefits.

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Which quality criteria need to be considered for greenhouse gas offsetting? And what does additionality mean in this context?

In order to guarantee that climate projects have a positive impact, there are some criteria that need to be considered. One of the most important is additionality. There must be a guarantee that the project would not have gone ahead in any case. When examining the criteria, a distinction can be made between two forms of additionality:

a) Financial additionality: Ensures the climate protection measure would not have happened without the revenue from carbon credits. Measures which were already economically viable cannot be certified as climate projects.

b) Regulatory additionality: Ensures the emission reduction is not legally required or typical practice in the region.

A reference scenario is developed to assess both forms, indicating how emissions would have developed without the climate measure. Comparing this with the expected project emissions allows for the emission reduction calculation. Additionality ensures that the sale of carbon credits results in genuine additional CO2 reductions.

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What does permanence mean for climate projects?

Permanence is a key quality criterion for ensuring the lasting impact of climate projects. The emission reductions from these projects must be guaranteed to be permanent. For example, in forestry projects, threats such as fires, pest infestations or illegal logging could negate emission reductions by releasing stored CO2.

Quality standards require risk analyses and may exclude certain vulnerable project types. Buffers also mitigate risks. For instance, 20-30% of total CO2 reductions in forestry projects are reserved and not issued as certificates, providing a communal reserve to draw upon in case of unforeseen events.

In summary, the permanence of climate projects ensures that emission reductions are maintained over the long term.

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What are corresponding adjustments?

Let’s look back to the 2015 Paris Agreement to understand corresponding adjustments. The 195 signatory states committed to setting and pursuing their own emission reduction targets, which leads to potential double counting. 

For example, imagine a German company buys certificates for a stove project in Ethiopia that offsets 1,000 tonnes of CO2. In the case of double counting, these 1,000 tonnes are counted for both Ethiopia’s national emissions reduction and the German company’s. This would distort global emission balances. Corresponding adjustments prevent this. In our example, Ethiopia would need to authorise the reduction transfer to Germany; thus, the 1,000 tonnes of CO2 would not be counted towards Ethiopia’s targets. Germany, with Ethiopia’s approval, can then claim the reduction of 1,000 tonnes of CO2.

Corresponding adjustments ensure accurate emission accounting and enhance global contributions to climate protection in a fair and communal manner.

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How do we feel the effects of climate change?

Climate change affects us in various ways: on one hand, we face more frequent heatwaves and droughts, and on the other, heavy rainfall and flooding. The increasing frequency of extreme weather events in Germany has been evident since the catastrophic flood in the Ahr Valley in 2021. However, what about the Global South, where the impacts of climate change have been felt longer and hit regions with less developed infrastructure?

Bangladesh, for example, is one of the world’s poorest countries and at the same time one of the most affected by global warming. This is due to its geographic location, with the Himalayas to the north and the Bay of Bengal to the south. Rainfall from the mountains can flood the country internally, while storm surges from the sea can reach up to five metres high. A one-metre rise in sea level would flood 30,000 square kilometres of land, transforming it into ocean. These massive floods already lead to diseases, famines and forced migrations.

To mitigate these severe impacts, especially in the Global South, industrialised nations must fulfil their responsibilities and take action where it affects the poorest of the poor. Financing climate projects that support local development is a practical form of assistance today.

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How can companies reduce emissions?

Before addressing how to reduce greenhouse gas emissions, it is essential to first consider how to avoid emissions altogether. For instance, emissions from business travel can be avoided by holding digital meetings instead of international conferences.

When emissions cannot be entirely avoided, the focus shifts to reducing them. But how? 

A critical aspect is energy. In Germany, electricity and heat production account for around 80% of greenhouse gas emissions. Switching to renewable energy sources offers the greatest reduction potential. Enhancing energy efficiency can also significantly contribute. Process optimisation and sustainable procurement are key measures for reducing a company’s emissions. However, the path to emission reduction is as individual as the company itself. Therefore, the first step is to create an emissions inventory for the company. This inventory helps define goals, strategies and concrete measures. This is not as complicated as it sounds, and every single step brings us closer to the 1.5°C target.

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What are Science-Based Targets?

Science-Based Targets (SBTs) are specific goals set by companies to reduce their greenhouse gas emissions. These targets focus on the amount of emissions that need to be reduced to meet the objectives of the Paris Agreement, which aims to limit global warming to well below 2°C, ideally to 1.5°C. SBTs involve developing concrete methods and criteria for setting and validating these goals, providing companies with the tools needed to implement climate actions based on the latest scientific findings.

These targets encompass emission reductions across the entire value chain, including upstream and downstream activities such as raw material production and recycling. Companies are thus responsible for indirect emissions from suppliers, energy usage and transportation chains. It’s important to note that companies cannot rely solely on external carbon offset certificates to meet their targets; however, they are encouraged to pursue such measures as additional climate actions.

Overall, SBTs offer companies the opportunity to align their goals and actions with the Paris Agreement, making a significant contribution to scientifically validated global climate protection.

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What are carbon sinks?

Forests, wetlands and oceans are natural reservoirs for CO2. These carbon sinks absorb more CO2 than they emit, playing a crucial role in the global climate.

Effective climate protection projects leverage the natural capacities of carbon sinks. For example, in reforestation projects, forests absorb CO2 from the atmosphere and convert it into oxygen through photosynthesis. Certified reforestation projects are known as carbon removal projects, which remove already released carbon dioxide from the atmosphere. In addition to natural carbon removal projects using carbon sinks, there are also technical methods to extract CO2 from the air.

Carbon avoidance projects, on the other hand, reduce emissions without binding greenhouse gases from the atmosphere. These include renewable energy projects, efficient cookstoves and more.

It’s clear: carbon sinks like forests, wetlands and oceans are of immense importance to the world’s climate. However, it remains crucial to emit as little CO2 as possible into the atmosphere and significantly reduce coal, gas and oil use.

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What is climate responsibility? 

Climate responsibility falls on those contributing to global warming. 

This primarily includes industrialised nations in the Global North. Since the onset of industrialisation, they have emitted the most greenhouse gases, while people in developing and emerging countries suffer the most from climate change effects despite contributing the least. The poorest are the hardest hit – floods, storms and droughts lead to crop failures and health risks, displacing millions as climate refugees. 

We bear climate responsibility not only for our contemporaries but also for future generations. To meet this responsibility, we must satisfy present needs without compromising the ability of future generations to meet theirs. 

Sustainable and climate-responsible actions should be: 

– Socially just, 

– Ecologically sustainable, 

– Economically efficient. 

This applies to states, municipalities, corporations, startups and individuals. We are all responsible for the climate and future of our planet. We must recognise our climate responsibility and act accordingly. Why not create sustainable perspectives for people in the Global South while securing our own future?

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What does the 1.5°C target mean?

In 2015, the UN member states agreed to limit global warming to 1.5°C above pre-industrial levels in the Paris Climate Agreement.

1.5°C or 2°C warmer – why does this make a difference?

If global warming reaches 2°C instead of 1.5°C by 2100, all coral reefs worldwide would die instead of “just” 70%. The risk of floods and heavy rainfall would increase by 170% instead of 100%.

So, 1.5°C is the target. What needs to be considered?

Firstly, tipping points are critical thresholds in the earth system. The North and South Pole ice sheets are among these tipping elements. Melting ice reflects less sunlight, diminishing the cooling effect. Other tipping points include the Amazon rainforest, methane release from permafrost, and ocean acidification. Protecting these fragile elements is crucial for climate stability.

Equally important is sustainable development in the Global South. This should be supported by promoting low-emission energy sources. Given rising energy demands and changing consumption patterns, global climate goals can only be achieved by leapfrogging carbon-intensive technologies.

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What is Agenda 2030?

The United Nations adopted Agenda 2030 in 2015. Its goal is to achieve sustainable development on a global scale by 2030. It is addressed equally to all states, companies, civil organisations, cities, municipalities and individuals.

What exactly does it entail?

At the core of Agenda 2030 are the 17 Sustainable Development Goals (SDGs). These goals cover all three dimensions of sustainability: society, economy and environment. Developing, emerging and industrialised countries are to achieve them by 2030.

Progress on several goals can be achieved through the promotion of high-quality climate projects. For example, in Raichur, India, traditional cooking on open fires is being replaced by sustainable cookstoves, achieving three SDGs:

Goal 15: Life on Land

The cookstoves require 70% less firewood, reducing deforestation, which is crucial in the dry region of Raichur.

Goal 13: Climate Action

Reducing firewood use also cuts greenhouse gas emissions.

Goal 3: Good Health and Well-being

Less harmful smoke improves health conditions. 

This example demonstrates how international cooperation can implement Agenda 2030’s sustainability goals practically. By supporting climate projects, we can all contribute to achieving the 17 SDGs.

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Are there multiple carbon markets?

Yes, there are. Primarily, carbon markets are divided into mandatory and voluntary markets.

Countries can trade emission rights through mandatory carbon markets. This system was established at the Kyoto Climate Conference in 1997, when industrialised nations first committed to binding reductions in their greenhouse gas emissions. 

Today, if a country emits less than its allocated amount, it can trade the remaining emission rights. The Paris Agreement further developed this system, requiring all countries to submit their own ambitious climate action plans every five years. Additionally, industrialised nations are committed to supporting countries in the Global South with climate protection and adaptation efforts. However, progress has not aligned with the targets set by the Paris Agreement.

This is where the voluntary market becomes crucial. It involves offsetting unavoidable emissions through specific projects that provide additional climate protection. These projects also aim to promote sustainable development. They are verified by non-governmental certifiers. The most commonly used standards in Germany are from organisations like Gold Standard and Verra. These organisations assess the design and implementation of projects and their economic, social and ecological impacts. Climate projects must avoid double counting: a single project’s emission reductions should only be certified and counted once in the mandatory or voluntary market.

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What is climate neutrality?

Under the Paris Agreement, the international community has agreed to become climate neutral by 2050. But what exactly is climate neutrality? It is generally defined as balancing the globally produced and absorbed emissions. Emissions should only be as much as can be reabsorbed by sinks such as forests or wetlands.

The term “net zero” is often used in this context. In a net-zero climate strategy, companies set goals to avoid and reduce greenhouse gas emissions in line with the global 1.5°C target. Only emissions that cannot be avoided are offset by investing in high-quality carbon sinks. Additionally, companies should make financial contributions to global climate protection measures outside their value chain, such as projects in the Global South.

Through net zero and global climate protection efforts, financially weaker countries can also be supported in making sustainable investments. What do climate neutrality and net zero have in common? First, emissions inventories calculate how much is emitted. Then, greenhouse gases must be avoided, reduced and offset. And this should be done as quickly and comprehensively as possible.

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What is an emissions balance?

An emissions balance shows the amount of greenhouse gas emitted. It can be measured annually, for example. However, not all greenhouse gases are equal. CO2 equivalents are often used to standardise values. Other climate-relevant greenhouse gases, such as methane or nitrous oxide, are converted into the most relevant greenhouse gas, carbon dioxide (CO2). For example, one tonne of methane is 25 times more harmful to the climate than one tonne of CO2, so one tonne equals 25 tonnes of CO2 equivalent.

For companies, emissions are divided into three categories: Scope 1 covers direct emissions from sources owned or controlled by the company, such as production facilities. Scope 2 refers to emissions from the energy consumed, including electricity, heat or cooling. Scope 3 encompasses indirect emissions from all other areas, including the entire value chain, suppliers, transportation, consumers and disposal. Together, these three scopes represent the total emissions of a company.

And what comes next? An emissions balance is the foundation for a climate protection strategy. It is essential, for example, when striving for climate neutrality. Only by knowing the amount of emissions produced can companies aim to avoid, reduce and compensate for them. Finally, companies should report their contributions to climate and environmental goals. Some laws also require this, such as the EU’s “Green Deal”.

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Holistic climate strategies for companies – how does it work?

Climate protection concerns us all, but companies bear a special responsibility. Acting in a climate-friendly manner demonstrates corporate responsibility and helps ensure future viability. The starting point is the emissions inventory, which measures the company’s greenhouse gases. Emission reduction targets are derived from this. Credible climate protection strategies are based on scientifically grounded targets, considering how much can still be emitted to limit global warming to 1.5°C.

Ambitious interim targets must also be set. These goals are implemented at the company level along the entire value chain. A holistic climate protection strategy is built on the principle of comprehensively and rapidly avoiding, reducing and additionally compensating for emissions. High-quality climate protection certificates can offset emissions that cannot be avoided or further reduced. It is crucial that offsetting complements, rather than replaces, efforts to avoid and reduce emissions.

This involves offsetting emissions through high-quality climate projects elsewhere to at least an equivalent degree. Another approach is making financial contributions to climate protection without counting them towards the company’s climate balance. Both methods promote sustainable development and low-emission technologies where they are not yet in use. This protects the environment and can simultaneously reduce poverty. By adopting holistic climate protection, companies can fulfil their social and global responsibilities on multiple levels.

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What are emission certificates?

An emission certificate represents one less tonne of carbon dioxide in the atmosphere. It can offset one tonne of carbon dioxide emitted elsewhere. For this offset to really make a difference, the additionality criterion must be met. In other words, the climate project must have only been made possible by the purchase of the certificates and would not have happened anyway. Without additionality, no real extra climate protection is achieved.

However, how are climate projects certified? Initially, a reference scenario is established to determine how emissions would have increased without the project. Once the project is underway, independent auditors monitor and verify the saved emissions and development impacts. Only when all data are aligned is the certificate issued. When someone buys a certificate, it is retired to ensure the offset effect cannot be sold again.

Projects verified by the Gold Standard often produce high-quality certificates. These projects emphasise development impacts such as improved education and working conditions, health promotion, and environmental protection. Beyond greenhouse gas offsets, the goal is to improve local communities’ living conditions. It is about ensuring that both development and the climate benefit equally.

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What types of climate projects are there?

Projects for additional climate action differ in their type, scope, geographical location and target group. They not only save different amounts of emissions but also have different effects on the environment in which they are implemented.

Examples of projects that avoid GHG emissions include:

(a) energy projects that reduce emissions with renewable energy, such as the production of biogas or efficient cooking stoves.

Alternatively, there are projects which bind and permanently store GHG emissions, for example:

(b) nature-based solutions. In this scenario, carbon dioxide is stored by natural sinks. This includes forest protection, the protection of mangroves or the rewetting of moors.

When it comes to forestry projects, care must be taken to ensure that they remain in place for decades until they reach their total carbon storage capacity. In addition, conflicts over land use – for example, with local indigenous people – must be avoided in forest projects.

The projects can then meaningfully combine sustainable development and climate protection according to appropriate quality criteria and improve the social and economic conditions of the local community.

In this way, every additional tonne of carbon dioxide saved helps to protect the climate and contributes to more education, jobs and better health protection.

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Does greenhouse gas offsetting truly contribute to climate neutrality?

Imagine a company continues to emit greenhouse gases as if climate change weren’t happening. It merely offsets emissions by making compensation payments without making any effort to avoid or reduce them.

Sounds like greenwashing? It is indeed, when the process is as described.

However, greenhouse gas offsetting can make a real and important contribution to climate action, when the following points are considered.

Holistic climate action consists of three pillars: avoidance, reduction and offsetting of unavoidable residual emissions.

Let’s break down the process: a company measures its emissions, sets targets for avoidance and reduction, and then takes action to meet these targets. This approach stimulates innovation and fosters the adoption of new technologies and behaviours. Only emissions that are currently unavoidable are offset. This means that offsetting is a direct way to actively benefit the climate. It also promotes climate justice, as private funds from the Gobal North drive green innovation through climate projects in the Global South.

Returning to our question: does greenhouse gas offsetting really contribute to climate neutrality?

The answer is yes – when emissions are also reduced and avoided. Then greenhouse gas offsetting is an essential contribution to climate protection with a concrete and global impact.

Janine Steeger

The television presenter, speaker and author has been focusing on sustainability for some ten years. Through her experience presenting “green” events, sustainability work with corporations and her work as an author, she can draw on a wealth of experience on the subject. 

Janine Steeger comes with over 20 years professional experience as a journalist, over five years of which on the RTL television channel, for instance, moderating the boulevard magazine “Explosiv”. She acquired more extensive knowledge about sustainability through her study of corporate environmental management and environmental economics. She has adapted her private life to become more sustainable: She avoids flights and plastic as much as possible, cycles or takes the train, and favours “green” fashion and cosmetics. 

Photo credit: Nadine Dilly