Media reports have once again sparked a discussion about whether offsetting is an adequate tool for climate policy. For the long-term success of this solution, it is necessary to increase trust in the market. This will be possible thanks to the transparency of the entities operating on it.

Emission compensation (offset) is an increasingly widespread tool of climate policy. The challenges in implementing the solution are twofold – it is related to the climate policy of enterprises and to the credibility of the solutions offered by contractors, as well as to the effects on the environment and local communities.

– Offsets are part of climate neutrality efforts, but cannot be used as an excuse for not taking action to reduce greenhouse gas emissions. Compensation measures are designed to fill the gap between the achievable emission reduction and the state of climate neutrality, achieved by capturing carbon dioxide from the atmosphere, for example by rebuilding ecosystems – says Justyna Wysocka-Golec, director of the Climate Change, Energy and Decarbonization Team in the Business Advisory Department at KPMG in Poland.

Reports on the challenges related to measuring the real impact of the offsets offered are closely watched not only by climate movements, but also by company stakeholders – consumers or shareholders.

The credibility of the implemented reduction measures is one element of the process. Another is to check whether the portfolio of the purchased offset units includes activities that are not only cost-effective, but also efficient, with the ability to measure and verify results.

– For the long-term success of offsetting, it becomes necessary to increase trust in the market. Its construction will be possible thanks to the transparency of the actions taken and the entities operating on it. As in any area where fraud can occur on a large scale, it is crucial to verify before purchasing units whether these units exist at all, whether they show the additionality effect or whether they are not sold to us again – says Justyna Wysocka -Golec, director of the Climate Change, Energy and Decarbonization Team in the Business Advisory Department at KPMG in Poland.

More companies declaring climate neutrality drive interest in offsets. Such declarations are a response to legislative changes (e.g. elements of the European Green Deal) and to the scientific consensus reached in the reports of the Intergovernmental Panel on Climate Change (IPCC). It calls for a global offset by 2050.

– Well-thought-out offsetting can also bring other, non-climate environmental benefits. The most noticeable may be the positive impact on the protection of biodiversity, considered to be the field of the next environmental crisis. The expectations of regulators and the public in this regard are growing, so the choice of a high-quality project for the protection and restoration of ecosystems allows you to respond to the expectations of regulators or the market in advance and may be part of a broader ESG policy of the company – says Justyna Wysocka-Golec, director of the Climate Change Team , Energy and Decarbonization in the Business Advisory Department at KPMG in Poland.

Source: info. press

Source:https://odpowiedzialnybiznes.pl/aktualno%C5%9Bci/offsety-jako-narzedzie-polityki-klimatyczna-firm/

Supported by Norway through Norway Grants 2014-2021, in the frame of the Programme “Social Dialogue – Decent Work”.