Reduce your carbon footprint
Creating value through climate action
Carbon offsetting is a critical component of an organisation’s climate strategy. For most, going carbon neutral today cannot be done without the use of carbon offsets. Carbon offsetting is a measurable and credible way to neutralise an organisation’s greenhouse emissions and investing in carefully chosen carbon offset projects will deliver social and economic benefits to communities over and above emissions reduction. Offsets also build internal capacity on carbon pricing and future-proof your organisation by internalising the cost of carbon.
Carbon offset procurement
Management of risk in purchasing and retiring carbon offsets should drive the procurement strategy and is core to TEM’s value-add to our clients. Key risks that TEM expertly manage on behalf of our clients:
- Counter Party Risk: We undertake extensive due diligence on the project proponent and on any third-party transactions we provide transparency to the source of the credit supply and integrity of offset purchase.
- Price Risk: TEM has the systems and processes to manage the fluctuation and volatility in offset price over the term of the offset supply contract managed – on individual projects and across portfolios.
- Market Risk: TEM have the experience and capacity to understand the supply and demand dynamics of the different carbon markets to secure a predictable supply of carbon offsets.
- Policy Risk: TEM tracks the changes to domestic and international government policy, standards, carbon markets and certification schemes that informs the future offset purchasing.
- Supplier Risk: As a specialist buyer of carbon offsets for our clients, TEM has the people, systems and processes in place to manage client risks and we operate under an AFSL.
Carbon offset projects
Types of carbon offsets
TEM delivers carbon offsets from a diverse portfolio of premium carbon projects in Australia and around the world, accredited under internationally recognised standards.
Our carbon offset portfolio consists of eligible carbon offset units that have been assessed as meeting the Australian Government’s Climate Active Carbon Neutral Standard’s offsets integrity principles.
- Australian Carbon Credit Units (ACCUs) issued by the Clean Energy Regulator;
- Verified Emissions Reductions (VERs) issued by the Gold Standard;
- Verified Carbon Units (VCUs) issued by the Verified Carbon Standard;
- Certified Emissions Reductions (CERs) issued under the Clean Development Mechanism of the United Nations Framework Convention on Climate Change.
Frequently Asked Questions
Management of risk in purchasing and retiring carbon offsets should drive a company’s offset procurement strategy. TEM is the largest offset provider in Australia and the team has over 60 years combined experience in global carbon markets. We expertly manage the following risks on behalf of our clients:
• Counter party risk – We undertake extensive due diligence on the project proponent and on any third-party transactions we provide transparency to the source of the credit supply and integrity of offset purchase.
• Price risk – We have the systems and processes to manage the fluctuation and volatility in carbon offset price over the term of the offset supply contract managed, on individual projects and across portfolios.
• Market risk – we have the experience and capacity to understand the supply and demand dynamics of different carbon markets to secure a predictable supply
• Policy risk – we track the changes to domestic and international government policy, standards, carbon markets and certification schemes that informs future offset purchasing
• Supplier risk – as a specialist buyer of carbon offsets, we have the people, systems and processes to manage client risks and we operate under an AFSL
A partnership with TEM delivers so much more than carbon offsets. We thrive on nurturing a relationship that exceeds expectations by developing sophisticated, creative solutions that include bespoke marketing and communications content, strategic stakeholder engagement, consumer insights on sustainability and immersive offset project experiences.
One carbon offset represents one metric tonne of greenhouse gas emissions reduced or removed from the atmosphere. A carbon offset is created by either a) removing one tonne of emissions from the atmosphere by for example planting forests, or b) preventing one tonne of emissions from reaching the atmosphere by for example replacing a fossil-fuel burning power plant with a wind farm.
Carbon Offsetting is an activity by businesses, consumers, and groups to firstly calculate, reduce emissions where possible or practicable and then offset their emissions. This process has been made increasingly popular by entities and individuals frustrated by a lack of ambitious and effective climate action at the national and international level.
In its purest form carbon offsetting provides a verified counterfactual price for emissions reductions. Enabling users to reflect environmental costs and also invest in removal, avoidance, or reduction activities.
An activity, product or organisation is carbon neutral when its greenhouse gas emissions are equal to zero. To become carbon neutral, companies must rigorously calculate their emissions, reduce them as much as possible, then purchase and retire carbon offsets to the equivalent of the remaining emissions.
As planes fly they burn fuel that releases greenhouse gas emissions into the atmosphere. We have calculated the emissions for each flight available on Webjet, and as a passenger you can offset your share of these emissions. We then pass your offset contribution to verified carbon offset projects around the world that mitigate climate change, protect wildlife and nourish communities.
Offsets must demonstrate actual emission reductions compared to what would have otherwise happened, ensure the emissions they represent are not simply released at a later date, or are displaced elsewhere. Essential components used to verify the quality of offsets across different carbon offset standards include:
Real: offsets must represent real emission reductions that have already occurred (i.e., the reduction is not projected to occur in the future).
Additional: offsets must represent emission reductions that are in addition to what would have occurred otherwise.
Permanent: offsets must represent emission reductions that are non-reversible or must typically be sequestered for 25-100 years in the case of sequestration projects.
Verifiable: sufficient data must be available to ensure emission reductions can be verified by an independent auditor against an established protocol or methodology under the carbon offset program.
Quantifiable: emission reductions must be reliably measured or estimated, and capable of being quantified.
Enforceable: offset ownership is undisputed and enforcement mechanisms exist to ensure that all offset program rules are followed and the market’s environmental integrity is maintained.
TEM only supports carbon offset projects that are verified at the highest international standards. Of course, it is critical to ensure that the emission reductions generated by these projects are actually occurring. This is the work of accreditors like the VCS Program and the Gold Standard to ensure that once projects have been certified against rigorous criteria, project developers can then be issued tradable carbon offsets.
We procure carbon offsets from a diverse portfolio of international and domestic projects, including projects in every State/Territory across Australia and every continent in the world. All of our offsets are compliant under the Australian Government’s Climate Active Carbon Neutral Standard. Our projects are all accredited under a strict third-party verification standard. These standards have a rigorous set of rules and requirements to ensure each project delivers real, permanent, and additional benefits.
The price of offsets can vary depending on the location, size, certificate and the type of project. TEM can help tailor a portfolio of offsets that meets your budget expectations and delivers against the strategic drivers important to you and your business.
The main difference between these methods is that carbon removal captures carbon that has already been emitted into our atmosphere, such as through nature-based solutions including reforestation and blue carbon sinks.
Whereas carbon avoidance projects prevent emissions from being released in the first place, through methods including renewable energy displacing fossil fuels and preventing deforestation.