Terrapass https://terrapass.com/ Restore the Balance Mon, 23 Feb 2026 22:07:42 +0000 en-US hourly 1 Beyond Carbon Credits: A Guide to the Expanding World of Environmental Credits https://terrapass.com/blog/beyond-carbon-credits-a-guide-to-the-expanding-world-of-environmental-credits/ Mon, 23 Feb 2026 21:04:58 +0000 https://terrapass.com/?p=1246100 If a business wants to make a positive impact on the world, addressing its environmental footprint operationally might not be enough. Even with the best intentions, running a business inevitably means consuming some resources that can’t simply be avoided. For example, a coffee company might engage in regenerative farming to sequester more carbon than it […]

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If a business wants to make a positive impact on the world, addressing its environmental footprint operationally might not be enough. Even with the best intentions, running a business inevitably means consuming some resources that can’t simply be avoided.

For example, a coffee company might engage in regenerative farming to sequester more carbon than it emits and support healthy local ecosystems. But even with careful practices, it can’t avoid certain realities, like the shipping emissions from transporting beans to their customers.

Fortunately, there are several voluntary, market-based solutions that enable businesses to address residual environmental issues that can’t simply be cut. c

The most well-known mechanism is likely carbon credits. Also called carbon offsets, carbon credits direct financing toward environmental projects that avoid, reduce, or remove emissions, thereby helping a buyer balance its carbon footprint. And with high-quality credits, the funding typically supports projects that wouldn’t otherwise be possible without this extra revenue.

But carbon credits are just one of several types of environmental credits that direct financing toward projects that support the environment.

For one, carbon credits are often grouped under the umbrella term environmental attribute certificate (EAC), which includes other types of financing mechanisms, like energy-related certificates. By purchasing an EAC, the buyer generally gains the right to claim the environmental benefits associated with that certificate, like an emission reduction associated with funding renewable electricity.

Still, the same concept can apply to non-emissions areas. Buying plastic credits can fund the recovery or prevention of plastic waste, which a company might then claim helps balance the impact of the virgin plastic used in its products.

Depending on your operations and sustainability goals, different types of credits or certificates could be worth investing in.

Here, we’ll take a closer look at some of the most popular types of environmental credits.

Types of Environmental Credits

Renewable Energy Certificates (RECs) Environmental attributes of 1 MWh of renewable electricity Claim renewable electricity use and support clean energy generation
Water Restoration Certificates (WRCs) 1,000 gallons of freshwater restored or improved Address water footprint by contributing to water restoration
Plastic Credits ~1 metric ton of plastic collected or recycled (varies) Counter plastic pollution when elimination isn’t yet possible
Biodiversity Credits Conservation of ecosystems (units vary by issuer) Protect biodiversity/conserve natural ecosystems
Sustainable Aviation Fuel certificates (SAFc) Environmental attributes of 1 metric ton of sustainable aviation fuel Claim low-carbon fuel and support sustainable fuel production
Renewable Thermal Certificates (RTCs) Environmental attributes of 1 dekatherm of renewable thermal energy Reduce emissions from hard-to-electrify fuels, e.g., replacing fossil fuel natural gas with renewable natural gas

 

Carbon Credits

What they represent: One metric ton of carbon dioxide equivalent emissions avoided, reduced, or removed from the atmosphere.

Why they matter: Even when companies set ambitious emission reduction goals, they generally can’t cut to zero overnight. Carbon credits can help serve as a bridge to global net-zero, and they can continue to be used to offset residual emissions that are essentially impossible to avoid.

Carbon credits also tend to have a variety of co-benefits beyond emissions, like protecting valuable ecosystems or supporting health and economic opportunities in the local communities where these projects operate.

How they’re generated: Carbon credits can come from many different types of projects that have independent third-party verified emissions impact, such as reforestation, methane capture from landfills, and soil carbon sequestration, to name just a few.

 

Calculate your carbon footprint to get a better sense of the emissions you want to balance.

 

Renewable Energy Certificates (RECs)

What they represent: The environmental attributes associated with one megawatt-hour (MWh) of renewable electricity.

Why they matter: Buying a REC is essentially the same as buying renewable electricity. Power gets mixed from different sources within a grid, so it’s not always possible to know exactly who’s consuming what. But since that renewable electricity is definitively added into the mix, that means someone is now using renewable energy.

The REC simply gives you permission to claim that benefit for yourself, while generally avoiding the risk of double-counting. Meanwhile, by buying RECs, you’re supporting the financial viability of more clean energy projects.

How they’re generated: RECs can be generated when a renewable source of electricity gets verifiably added to a power grid. RECs can either be sold bundled or unbundled. With bundled RECs, the energy and environmental attributes are sold together, like if a solar farm directly sells its energy to a company and agrees not to sell the claim to those environmental attributes elsewhere. Unbundled RECs separate the environmental claims and the energy, making it possible to claim the use of renewable electricity while continuing to purchase from your local utility.

 

You can easily and affordably purchase Green-e certified RECs through Terrapass online.

 

PrairieWinds ND1 (PWND1) Emissions Reduction Project

Water Restoration Certificates (WRCs)

What they represent: One WRC corresponds to 1,000 gallons of natural freshwater improved or restored.

Why they matter: Many parts of the world are under significant water stress, which often stems from issues like commercial overuse and climate change. Buying WRCs can help counter this trend by supporting the health and volume of freshwater systems.

A business operating in water-stressed regions in the Western U.S., for example, may need to inevitably use some freshwater to produce its products. In that case, it can ideally fund WRC projects in that same water resource region, like ones that secure water rights to keep more water within rivers, aquifers, etc.

How they’re generated: While similar water-related credits may exist elsewhere, BEF WRCs™ are specifically issued by the Bonneville Environmental Foundation (BEF). BEF WRC™ projects can involve restoring flows through securing legal rights, restoring natural systems through physical interventions like removing dams, or improving water use efficiency. All projects are third-party verified, typically by Watercourse Engineering or the National Fish and Wildlife Foundation, and all are tracked on S&P Global’s Markit registry.

 

Support freshwater systems and their associated recreational and ecological benefits by buying WRCs through Terrapass today.

 

Water Restoration Certificates (WRCs)

Plastic Credits

What they represent:  Plastic credits aren’t quite as formalized as some of these other market-based instruments, so the details can vary by credit issuer. But one example is Verra’s Plastic Waste Reduction Program, where one plastic credit represents one metric ton of plastic that’s been collected or recycled.

Why they matter: Each year, approximately 19-23 million tons of plastic leak from land-based sources into water systems, according to the UN Environment Programme. Plastic pollution then poses many threats, such as to the health of marine animals, as well as overall human health.

Businesses can buy plastic credits to help counter plastic pollution, especially because plastic has become so ubiquitous that it’s not always possible to immediately remove plastic from your packaging or other parts of your supply chain.

How they’re generated: Generating these credits depends on the issuer. Some businesses, particularly consumer-facing ones, work with third-party organizations to make plastic-neutral claims. For one, ice pop company GoodPop launched a limited edition flavor that’s certified plastic neutral by 4Ocean. For this certification, 4Ocean removes plastic from water systems and coastlines equivalent to each pound of plastic used to produce that product or for the brand as a whole.

For Verra’s plastic credits, projects must meet the specific guidelines of its Plastic Waste Reduction Standard and accounting methodologies that help ensure each credit represents one metric ton of plastic collected or recycled. These projects are also third-party audited, as well as tracked on the Verra Registry, similar to carbon credits.

 

Plastic Credits

Biodiversity Credits

What they represent: Biodiversity credits are one of the least developed types of environmental credits, so there’s not a general consensus on what they represent. Different credit issuers have different standards.

For example, one of the pioneers in this space, Savimbo, sells biodiversity credits that represent one month of conservation for one hectare in a biodiversity hotspot. In contrast, another leader in this space, Terrasos, sells biodiversity credits that represent 10 m² (0.001 hectares) of protected ecosystems for 30 years.

Why they matter: Climate change and related issues like land use change are causing significant biodiversity loss. From 1970 to 2020, wildlife populations fell by 73%, according to WWF.

At a simple level, interfering with natural cycles of plant and animal life leads to species loss, which then creates more risks for humans, like faster temperature rise due to the loss of natural carbon sinks. There’s also many nuanced arguments for supporting biodiversity, such as the economic and health value of stable plant and animal life.

How they’re generated: Because these are less established, there’s not a standard way to generate biodiversity credits. But in general, these work like carbon credits, in the sense that an issuer works with project developers to ensure a given area of land is conserved in a way that protects biodiversity.

One voluntary group, the Biodiversity Credit Alliance (BCA), backed by organizations such as the UN Development Programme, is working on developing a framework for biodiversity credits that could help this market more closely resemble the voluntary carbon credit market.

 

Biodiversity Credits

Sustainable Aviation Fuel Certificates (SAFc)

What they represent: The environmental attributes associated with one metric ton of unblended sustainable aviation fuel (SAF).

Why they matter: Flying is a carbon-intensive activity, yet these can be some of the hardest emissions to avoid. A growing business, for example, may be able to address its direct energy use, but total emissions could still rise if employees fly to meet with customers and suppliers. Finding efficiencies like batching travel into longer trips or using online meetings when possible can help, but the reality is that many still value flying.

So, sustainable aviation fuel certificates (SAFc) provide buyers with a way to claim the use of this low-carbon fuel, rather than accounting for the normal emissions associated with traditional jet fuel. If you’re flying on a commercial airline, you don’t have direct control over their fuel usage, but by buying SAFc, you’re supporting the transition to lower-emission fuel sources.

How they’re generated: Unlike traditional jet fuel made from petroleum, SAF comes from alternative feedstocks like used cooking oils or agricultural waste. SAF then gets blended with traditional jet fuel, with commercial planes currently able to accommodate about 10-50% of the total volume from SAF, though testing of higher limits is underway.

Because of this blending, you can’t exactly say that your flight from New York to LA runs on SAF while a flight from New York to San Francisco runs on traditional jet fuel. But like with RECs, SAF certificates give you the ability to claim the environmental attributes of SAF. If you purchase enough certificates that correspond with your flight’s fuel usage, you could claim your portion of the flight fully used SAF from an emissions accounting perspective.

Buyers often use the book-and-claim approach for SAF certificates and other low-carbon fuel purchases. That means instead of taking physical possession of this fuel, you’re buying the certificates that represent a certain amount, and you then claim the corresponding environmental attributes.

Renewable Thermal Certificates (RTCs)

What they represent: The environmental attributes of 1 dekatherm (Dth) of renewable thermal energy, such as renewable natural gas or green hydrogen.

Why they matter: Not everything can be electrified to then run on renewable electricity, at least in the short term. Businesses often still have large scope 1 footprints from burning natural gas or using similar fuel sources.

So, using renewable thermal certificates (RTCs) provides buyers with a way to claim the environmental benefits of renewable thermal energy, like using renewable natural gas (RNG) to generate heat from a furnace, or using green hydrogen to power an industrial boiler. Like with RECs, RTCs enable buyers to make these claims without having to always physically procure the renewable energy, especially in cases where renewable and non-renewable fuels get mixed.

How they’re generated: RTCs are generated from projects that produce renewable thermal energy, like municipal waste facilities that capture methane from landfills and convert it into RNG. This works essentially the same as it does with RECs, where the RTCs can be either bundled with the underlying energy or sold unbundled on a book-and-claim basis.

 

Finding the Right Environmental Credits

Environmental issues are often deeply interconnected. Rising greenhouse gas emissions, for example, can increase global temperatures, which then can increase droughts and trigger biodiversity loss. So, while carbon credits are generally the most established option, purchasing a broader mix of environmental credits can help organizations reach sustainability goals faster and drive more meaningful impact.

Still, not all environmental credits are created equally. Quality can vary significantly, so make sure you’re buying credits from a reputable source. Consider factors such as third-party verification, registry tracking to avoid double-counting, and additionality, where the money from purchasing credits supports environmental action that wouldn’t otherwise take place.

Environmental product providers like Terrapass make it easy for buyers to fund a mix of high-quality carbon credit projects, as well as other types of credits like RECs and WRCs.

Businesses can also build a custom portfolio of environmental credits through Terrapass to align with your environmental footprint and corporate sustainability goals. Reach out today to see how you can make a more positive impact by funding different environmental projects.

frameworks, and support transparent, defensible climate claims as part of a long-term sustainability strategy.

 

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Climate Action in 2026: New Rules Add High-Integrity Carbon Credits to Aggressive Decarbonization https://terrapass.com/blog/climate-action-in-2026-new-rules-add-high-integrity-carbon-credits-to-aggressive-decarbonization/ Wed, 28 Jan 2026 17:26:57 +0000 https://terrapass.com/?p=1243783 After a turbulent year for sustainability in 2025, many businesses are reassessing how to move forward on climate action. While the impacts of global warming are accelerating, political and regulatory support for climate initiatives has become increasingly uneven across regions. For companies navigating climate risk, sustainability disclosures, and reputational exposure, this uncertainty raises a critical […]

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After a turbulent year for sustainability in 2025, many businesses are reassessing how to move forward on climate action. While the impacts of global warming are accelerating, political and regulatory support for climate initiatives has become increasingly uneven across regions. For companies navigating climate risk, sustainability disclosures, and reputational exposure, this uncertainty raises a critical question: how will climate action be credible and valued over the long term?

As we look to 2026, two clear themes are emerging. First, businesses need a steady, long-term approach to managing carbon emissions that is resilient to political shifts. Second, governments, global coalitions, and leading climate frameworks are reinforcing the role of high-integrity carbon credits—providing clearer rules for how credits can be used alongside decarbonization, establishing global quality standards, and offering guidance that protects companies from greenwashing accusations. Together, these developments signal an important evolution in how carbon credits fit into credible climate strategies.

Executive Takeaway

In 2026, credible climate action is no longer about choosing between decarbonization and carbon credits—it is about using both correctly. New guidance from global coalitions and frameworks such as The Coalition to Grow Carbon Markets and the Science Based Targets initiative (SBTi) is clarifying how high‑integrity carbon credits can complement sustained emissions reductions, mobilize global climate finance, and support transparent, defensible climate claims. For businesses, these developments reduce uncertainty and greenwashing risk while reinforcing the need for disciplined project selection, clear disclosures, and alignment between carbon credit attributes and their intended climate use.

Businesses Need a Steady, Long‑Term Strategy for Carbon Footprint Management

Global warming and climate change are happening, and they are not going away. Businesses and individuals are feeling the effects in very real ways. Higher temperatures are increasing our energy consumption and costs. (2) More frequent and severe storms are driving up insurance costs. (3) Tidal flooding events are more common. (4) While more talked about signs of global warming like shrinking glaciers and retreating sea ice feel like another world, global warming will increasingly affect all of us.

Businesses need to view carbon emissions are a long-term liability risk in addition to corporate environmental responsibility. Companies already face negative public and customer perception for greenhouse gas emissions, and regulatory penalties could increase over time. 2026 will have several new regulatory requirements in sustainability and climate. Australia, Hong Kong, Indonesia, Malaysia, Singapore and Thailand have enhanced their climate-related disclosure requirements. (7) EU’s Carbon Border Adjustment Mechanism (CBAM) also enters its definitive phase. This trend will only continue. As the effects of global warming build, the historical impacts that a business has not addressed become an increasing liability concern.  advances

Advances in understanding climate science, developments in zero emission technology, and progress in greenhouse gas regulation teach us that climate action will not be an abrupt shift. It will be a long-term sustained transition by businesses, governments, and society. Good business leaders recognize the difference between short-term political fluctuations and long-term drivers like global warming. It is inefficient for businesses to reactively stop and start programs based on the trends of the moment. Successful business leaders recognize long-term drivers and maintain programs to create future competitive advantages. The best way to mitigate the liability of greenhouse gas emissions is with consistent progress and action over time. Businesses who continue to implement and advance their climate programs will reduce their historic greenhouse gas liability and position their companies for long-term success. This is also an important way for a business to show customers that it cares about its impact on the planet.

Carbon Credits are an Important Part of Climate Action, Especially in Times Like This

Widespread and consistent government support for the transition to a net-zero economy has been difficult to achieve. Progress is challenging when government programs stop and start with political changes. A major benefit of voluntary carbon projects is that they don’t rely on government support. They rely on climate finance from businesses and individuals who purchase carbon credits to take responsibility for their footprint by contributing to global greenhouse gas reduction. Carbon credits are a way for businesses and individuals to drive carbon reduction and sustainability independent of the politics of the moment.

Carbon markets also help reduce the cost to society for climate action by directing funding to projects that achieve the biggest impact at the lowest cost. Even long-time climate activist Bill Gates acknowledged that social well-being must be maintained while we address global warming. (1) With limited funds to drive economic growth, social welfare, and carbon reduction, it is in everyone’s best interest to make climate action as efficient as possible.

Lastly, while the priority is eliminating our own carbon emissions wherever possible, we know that is not enough. Our global carbon reduction needs are bigger than our ability to eliminate our emissions. Supporting high-quality voluntary carbon projects alongside science-aligned carbon reduction is the new formula for leading climate action.

Climate Action in 2026: New Rules Add High-Integrity Carbon Credits to Aggressive Decarbonization

Governments and Climate Leaders want Aggressive Carbon Reduction and Global Climate Finance

Government and climate leaders focused on achieving the greatest climate progress to recognize the value of carbon credits in climate action. The governments of UK, France, Switzerland, Luxembourg, Canada, New Zealand, Kenya, Panama, Peru, and Zambia are leading The Coalition to Grow Carbon Markets which launched at London Climate Action Week 2025. The goal of The Coalition is to, “drive climate-positive growth and accelerate the pace of emissions reductions worldwide by strengthening the incentives businesses need to invest in high-integrity carbon credits across carbon markets, including voluntary and Article 6 markets.” (5) It recognizes that carbon credit markets are an under-used tool to drive investment to the global low-carbon transformation and put a value on the greenhouse gas (GHG). (5)

“With a $1.3 trillion annual climate finance gap, we must unlock the full potential of private sector action to accelerate emissions reductions and drive investment at scale.” Philippe Varin, Chair, International Chamber of Commerce (ICC). (5)

Coalition partners include World Business Council for Sustainable Development (WBCSD), Integrity Council for the Voluntary Carbon Market (ICVCM), World Bank, International Chamber of Commerce (ICC), and International Emissions Trading Association (IETA), which have worked closely with the Coalition to inform and shape the outputs. 

The Coalition’s Shared Principles aim to align private sector action with national and global climate goals by providing direction, clarity, and confidence for companies to grow their voluntary carbon credit demand, alongside deep decarbonization, and to make credible claims regarding these actions. Companies who follow these rules ensure a high standard for carbon project integrity and also have important protection against greenwashing accusations. The Shared Principles include: (5)

  1. Use carbon credits in addition to decarbonization

Companies should prioritize measurable and sustained direct and indirect emissions reductions with carbon credits used in addition to decarbonization, in line with the mitigation hierarchy

  1. Use carbon credits with high environmental integrity

Companies should retire carbon credits of high environmental integrity

  1. Uphold fair price, social safeguards, and, where applicable, support co-benefits for people and nature

Companies should source carbon credits from activities that meet rigorous requirements for social, economic, and environmental safeguards

  1. Disclose carbon credit use publicly and transparently

Companies should publicly and transparently disclose how carbon credits are used as part of their climate strategies

  1. Make accurate, substantiated claims involving carbon credit use

Companies should ensure that claims involving carbon credits are clear, truthful, and substantiated, avoiding greenwashing and misleading representations

  1. Support growth of high-integrity carbon credit markets

In a rapidly evolving market for voluntary carbon credit use, companies should cooperate with other market participants to help improve market functionality.

SBTi and the Evolution of Business Climate Claims

Science Based Targets Initiative (SBTi), the leading global framework for business climate action, is also undertaking its first broad revision of the Net Zero Standard. Among other changes, SBTi will add rules for the use of permanent carbon removals in business net-zero plans and recognition for addressing ongoing emissions with high-integrity carbon credits. The new Net Zero Standard is expected to be published in spring 2026 and becomes mandatory beginning January 1, 2028. There are two Key Elements of the Net Zero Standard Revision Related to Carbon Credits: (6)

  • Companies can start using durable Carbon Removals now to achieve near-term and long-term carbon removal goals for Scope 1 Residual Emission requirements in their net-zero plan.
  • SBTi will also recognize companies who use high-integrity carbon credits to address “ongoing emissions” (those released during the decarbonization journey), if they also achieved their carbon reduction goals for the year. SBTi states that by taking responsibility for these ongoing emissions, companies can help limit temperature overshoot, reduce transition risks, and support climate solutions.

This also reflects the increasing importance of aligning the attributes of a carbon reduction project with the intended use. SBTi identifies that only durable removal credits can be used for science-aligned global net-zero progress because the carbon removal has the same lifetime as carbon emitted. Non-durable carbon removals and carbon reductions/avoidances can be used to address ongoing emissions because they are not tied to a science-aligned net zero goal. This element of SBTi focuses instead on driving climate finance that supports the transition to a net-zero economy and invests in natural climate resilience.

SBTi also provides support for businesses who make climate claims when they follow these rules. The latest update on the Corporate Net Zero Standard Revision says, “Companies that meet the recognition criteria and public reporting criteria in CNZS-C25 shall be eligible to make claims related to Ongoing Emissions Responsibility. (6) Similar to The Coalition to Grow Carbon Markets, companies who follow SBTi rules ensure a high standard for carbon project integrity and have important protection against greenwashing accusations. SBTi also provides sample statements on how to make a credible claim about addressing ongoing emissions: (6)

  • “Between 2025 and 2030, we took responsibility for 50% of our ongoing emissions over the five-year target timeframe as a contribution to global net-zero, achieving SBTi Ongoing Emissions Responsibility Recognized status.” Mandatory elements:
  • “We funded 100,000 t CO2e of third-party verified emissions reductions beyond our value chain to take responsibility for 50% of ongoing emissions as a contribution to global net-zero.”
  • “We supported 800,000 tCO₂e of verified ex-post mitigation outcomes (40% of our total ongoing emissions) through emission reductions and carbon removals.”

It is worth mentioning that many, including SBTi, have moved away from the phrase “offsetting” because some interpreted it to suggest that carbon emissions have been cancelled. Instead, the climate science community is moving towards the view of carbon credits as a positive contribution to the global climate. At Terrapass we also increasingly refer to carbon credits as a climate contribution. However, “carbon offsetting” is historically and today one of the most widely recognized terms for climate action. Many people and companies who want to make a climate contribution still use this phrase. It is important to connect with everyone looking for help with climate action. For this reason, Terrapass still references carbon offsetting as we also transition towards climate contribution language. 

Resolving Critical Needs for Business Climate Action

The Coalition to Grow Carbon Markets and SBTi Net Zero Standard 2.0 solve problematic gaps in sustainability and climate action. Companies are not in the business of creating sustainability rules. They need independent organizations with scientific and administrative rigor to set rules that can be followed with confidence. Globally aligned standards for carbon project quality are essential. That was lacking historically and led to inconsistencies in project quality that drove much of the controversy about carbon markets. However, new global quality standards like ICVCM have addressed this gap, and we are seeing climate initiatives across the world align with this standard.

In addition to rules for project quality, we also need independent organizations that define how businesses should use carbon credits and promote their climate contributions. The new rules from The Coalition to Grow Carbon Markets and SBTi drive climate progress by giving businesses confidence in how to use carbon credits and how to talk about it. This gives businesses much needed protection from greenwashing accusations by pointing to the rules created by independent global climate leaders.

Build a Credible Climate Strategy

If your organization is evaluating how carbon credits fit into your climate strategy — whether you’re
prioritizing decarbonization, addressing ongoing emissions, or navigating evolving disclosure and climate
claims guidance — Terrapass Advisors can help.

Our team works with businesses to assess project integrity, align carbon credit use with leading global
frameworks, and support transparent, defensible climate claims as part of a long-term sustainability strategy.

Get Started on Your Sustainability Journey

 


 

 Sources:

(1) https://www.gatesnotes.com/home/home-page-topic/reader/three-tough-truths-about-climate

(2) https://www.climatecentral.org/climate-matters/record-heat-rising

(3) https://www.usnews.com/insurance/homeowners-insurance/climate-change-and-rates

(4) https://www.noaa.gov/news-release/us-high-tide-flooding-continues-to-break-records

(5) https://coalitiontogrowcarbonmarkets.org/shared-principles/

(6) https://sciencebasedtargets.org/developing-the-net-zero-standard

(7) https://www.slaughterandmay.com/services/practices/environmental-social-and-governance/esg-in-apac-2025/key-themes-and-observations/

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How Green-e® Certification Programs Ensure REC and Carbon Offset Buyers Get What They Pay For https://terrapass.com/blog/how-green-e-certification-programs-ensure-rec-and-carbon-offset-buyers-get-what-they-pay-for/ Mon, 15 Dec 2025 17:04:07 +0000 https://terrapass.com/?p=1239345 Have you ever seen those ads to adopt a star? While paying to name one in someone’s honor may sound like a nice gesture, the companies selling these gifts aren’t even officially authorized to name stars — only the International Astronomical Union can. With a lack of authority also comes issues like double-counting, where two […]

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Have you ever seen those ads to adopt a star? While paying to name one in someone’s honor may sound like a nice gesture, the companies selling these gifts aren’t even officially authorized to name stars — only the International Astronomical Union can. With a lack of authority also comes issues like double-counting, where two people end up “buying” the same star, despite the billions that exist in our galaxy alone.

Similar issues crop up in the voluntary carbon market. It isn’t quite the Wild West it used to be, thanks to standard setters like the Integrity Council for the Voluntary Carbon Market (ICVCM), rigorous carbon credit registries, and pressure from corporate buyers. Yet the conversation on independent third-party verification tends to start and stop with how carbon credits are generated by projects.

For buyers to achieve the impact they’re looking for, they also need assurance across the purchase and retirement phase of carbon credits. With a poorly run carbon credit provider, you could end up paying for a carbon credit that then gets resold to another buyer, making it about as effective as paying to name a star.

The good news is that Green-e® Certification programs provide added assurance, starting with certifying project quality, all the way through ensuring carbon credits are only used once and are properly retired.

“Terrapass is a strong supporter of Green-e® Certification programs,” says Sam Telleen, President of Terrapass. “Independent third-party verification of environmental products is important not just in the generation of credits by projects but also in the retirement of credits by sellers. We value the trust and confidence that Green-e® Certification provides to our customers.”

The majority of businesses don’t have the expertise and resources to source their own carbon credits and renewable energy certificates (RECs) and then manage their own accounts with the various product registries. They rely on environmental product providers to handle sourcing and retirement for them. Green-e provides an extra layer of assurance across these areas through an annual auditing process.

You can easily and affordably purchase Green-e® Energy Certified Terrapass RECs or Green-e® Climate Certified Terrapass Carbon Offsets for your businesses through Terrapass online. And you can use our carbon footprint calculator to get a better sense of the business emissions you want to balance.

Understanding Green-e® Certification

Green-e is a certification program from the nonprofit Center for Resource Solutions that helps verify the quality and proper accounting of clean energy and carbon offset purchases. It also has some other types of certifications, but for the environmental products market, the two main ones include:

 

 

Green-e® Energy The Green-e® Energy program certifies the sale of renewable energy from generation through retirement of any associated credits. This typically applies when businesses purchase renewable energy certificates (RECs). With RECs, businesses buy the right to claim the use of renewable energy. It’s impossible to know whether an end user on a shared power grid is getting electrons from a renewable energy source or fossil fuels. Instead, businesses can buy the environmental benefits of a specific megawatt-hour of renewable energy, which is then retired on their behalf. This gives the REC buyer the exclusive right to the zero-emissions claims from that megawatt hour.However, if the REC buyer was uncertain about the validity of the REC, including whether or not anyone else claims the use of that energy, that would undermine their efforts to reduce emissions with clean energy. So, Green-e® Energy Certified Terrapass RECs give buyers confidence not only that the power comes from qualified facilities contributing to the grid, but also that the buyer properly receives the sole title to the environmental benefits of that renewable energy generation.

 

 

Green-e® Climate Green-e® Climate provides third-party verification of carbon offsets. Similar to Green-e® Energy Certified Terrapass RECs, Green-e® Climate Certified Terrapass Carbon Offsets help buyers feel confident that they’re not only financing high-quality carbon projects, but also that they are getting exactly what they paid for, based on Green-e auditing sales and ensuring offsets are properly retired by the seller in qualified registries.

Terrapass is proud to offer our business customers both Green-e® Energy Certified RECs and Green-e® Climate Certified Carbon Offsets, which you can purchase online, or we can customize projects for you for your Green-e® Certified business purchase.

Three Key Benefits of Green-e® Certified Projects

If you’re buying a Green-e® Certified REC or carbon offset, you can gain assurance in three main areas:

  1. Project Quality

Not all projects are eligible for Green-e® Certification. For example, Green-e® Climate Certified offset projects have to be verified by an Endorsed Program, which includes:

  • American Carbon Registry
  • Climate Action Reserve
  • Gold Standard
  • Verified Carbon Standard

The project quality verification differs a bit for other projects like RECs, but in general, if you’re buying a Green-e® Certified REC or offset, that adds a layer of quality assurance.

  1. Marketing

Connected to project quality is the fact that Green-e requires projects to be marketed accurately and transparently, across project developers, third-party sellers, and buyers. For example, Green-e conducts annual marketing compliance reviews to ensure sellers are meeting program standards. Green-e also restricts how its logo can be used, so in general, if you see Green-e certifications, you can feel confident that there’s a thorough process behind those marketing efforts.

  1. Chain of Custody

Lastly, Green-e verifies sales throughout the entire chain of custody, ensuring that the right project ends up with the right buyer and is properly retired. For example, Green-e checks each year to match the Green-e® Certified carbon offset or REC sales a seller has made with corresponding retirements in approved registries. That ensures that any sold credits do not remain unretired, which otherwise would raise the risk of the same credit being sold to multiple buyers.

Get Green-e Assurance Through Terrapass

If you want your carbon financing to have its intended impact, it’s critical to choose a seller that sets high-quality standards for its projects and is a registered participant of the Green-e® Energy and Green-e® Climate programs. Terrapass is proud to offer a portfolio of both Green-e® Energy Certified RECs and Green-e® Climate Certified Carbon Offsets.

We also offer a wide range of other types of high-quality projects, and we can help your business develop a portfolio of REC and carbon credit solutions to meet your corporate sustainability goals.

“We appreciate the support of participants like Terrapass, which bring the benefits of Green-e® Energy and Green-e® Climate certification to their clients,” said Jennifer Martin, CEO of Center for Resource Solutions, which administers the Green-e®.”

 

Choose Green-e® Certified Climate Solutions

Get confidence that your climate action delivers real impact.
Terrapass offers Green-e® Climate Certified Carbon Offsets and
Green-e® Energy Certified RECs, independently verified for quality,
proper accounting, and single-use retirement.


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Explore Green-e® Certified Products

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How the Benefits of Carbon Offsets Extend to Local Communities https://terrapass.com/blog/how-the-benefits-of-carbon-offsets-extend-to-local-communities/ Thu, 13 Nov 2025 21:17:12 +0000 https://terrapass.com/?p=1235972 Buying carbon offsets is typically associated with balancing your carbon footprint. By financing a carbon emissions reduction, removal, or avoidance — such as capturing methane from a landfill or reducing logging activity so forests can sequester more carbon — you can help offset the impact of your existing emissions. However, the benefits of carbon offsets […]

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Buying carbon offsets is typically associated with balancing your carbon footprint. By financing a carbon emissions reduction, removal, or avoidance — such as capturing methane from a landfill or reducing logging activity so forests can sequester more carbon — you can help offset the impact of your existing emissions. However, the benefits of carbon offsets extend far beyond the impact on your own greenhouse gas emissions accounting.

These projects often deliver a range of social and environmental co-benefits that help the local communities where these projects operate. Granted, not all carbon projects help local communities, particularly those that are created without consulting local stakeholders. However, carbon credit buyers can look for projects that are transparent on community involvement and ideally find ones with Benefit Sharing Agreements (BSAs).

Here, we’ll examine some of the top ways that supporting transparent, inclusive carbon projects can benefit local communities:

 

Economic Benefits of Carbon Offsets

Carbon offsets are considered a form of carbon financing, as the money spent purchasing carbon offsets helps fund the carbon project. In fact, a marker of a high-quality carbon offset project is that the money generated from selling carbon credits makes the whole project viable.

This funding from the voluntary carbon market can then create direct and indirect economic benefits for local communities, such as through job creation and adding revenue to local economies.

A good example of this can be seen with the Klawock Heenya Improved Forest Management Project, where Indigenous Alaskans operate as the majority landowner through the Klawock Heenya Corporation (KHC). These local owners have equity in the company, and one of their goals is to develop a sustainable economy that creates opportunities for both community members and shareholders.

Some carbon projects have direct revenue-sharing agreements with local communities, even for those not involved with project operations, while others involve more indirect revenue benefits, such as if higher wages prompt more local spending.

Some projects also create economic benefits by lowering local costs. For example, some landfill gas capture projects not only prevent methane from entering the atmosphere but also generate renewable energy, which can lower local utility bills.

Terrapass offers carbon credits across a broad range of project types, such as Reforestation, REDD+, and Landfill Gas Capture. You can support a mix of projects and their associated benefits with a monthly subscription of carbon credits for just $8.50 per employee that offsets what many businesses emit, while also providing associated benefits to local communities in North America, South America and/or Asia.

 

Non-Carbon Environmental Benefits of Carbon Offsets

As the name suggests, the core benefit of carbon offsets is that one offset equals one metric ton of carbon dioxide-equivalent emissions avoided/reduced/removed, which helps address one of the top drivers of climate change. Yet this benefit also tends to coincide with other environmental benefits to local ecosystems.

For example, soil carbon credit projects improve soil health, such as by facilitating increased microbial activity. These richer soils can then retain more moisture, which could help reduce flooding risk and mitigate the effects of drought locally.

Also, a more biodiverse soil environment below ground generally supports greater biodiversity above ground. Farmers can more easily grow a variety of crops that also have environmental benefits like feeding pollinators. That then contributes to a positive cycle, whereby more pollinators enable more plant growth beyond the farms where these carbon projects take place. In turn, this improved plant growth can contribute to cleaner local air.

 

Health Benefits of Carbon Offsets

Carbon offsets also tend to create health benefits, often in connection with their environmental impact.

For example, offset projects that improve local air quality, such as through improved forest management (IFM), can then positively affect local residents’ health. Similarly, IFM tends to also support cleaner water, as increasing tree cover can expand the ability of trees to filter pollutants from storm runoff before it enters local waterways.

There can also be mental health and recreational benefits, such as by preserving opportunities for people to hike and swim in forests and lakes.

Other types of carbon offset projects, like renewable energy projects, can also add health benefits, such as by removing systems that run on fossil fuels and harm indoor air quality.

Also, ones like soil carbon projects can create nutritional benefits for local communities, as healthier soil can improve food security and nutrient density.

Our online carbon offset customers support the Terrapass Global Portfolio, which includes a diverse mix of projects spanning North America, Asia, and South America. These project types, such as Reforestation, Orphan Oil Well Closure, and Residential Solar Installation, provide many associated benefits, such as to the health and economies of the areas where the projects are located.

Businesses can also work with our team of sustainability experts to develop a custom carbon offset program based on your goals and values.

 

Social Benefits of Carbon Offsets

The social benefits of carbon offsets overlap with areas like food and economic security, but these projects can also support a wide range of other social goals, like gender equality, cultural preservation, and peaceful societies.

These may be lofty goals that require more than just carbon offsets, but these projects can provide positive steps in the right direction.

For example, a conservation project could provide a win-win solution for a government that may be trying to expand its economy and local communities that want to preserve their ancestral lands. Provided that the project is managed in a way that respects local traditions while providing a stable revenue stream, that could help avoid land disputes and civil unrest.

Moreover, projects with BSAs may include provisions to fund local education, which can support a more inclusive society, such as if it gives more young girls access to education in developing regions.

One example of a project with broad-based social goals is the Rimba Raya Biodiversity Reserve Project, which focuses on preserving tropical peat swamp forest in Indonesia, rather than converting the land into palm oil estates. As such, the project not only prevents GHG emissions from this conversion but supports all 17 UN Sustainable Development Goals (SDGs) by funding a wide range of initiatives, like building libraries, training community fire brigades, and distributing solar generators to village community centers.

 

Fund Carbon Projects That Align With Your Goals

As these examples of co-benefits show, buying carbon offsets gives you substantial ability to make a positive impact on the world, beyond the direct climate benefit of offsetting emissions.

Terrapass supports a broad range of carbon projects that you can explore to see how these align with specific SDGs and benefit local communities. From there, you might choose to purchase a carbon offset subscription that funds a mix of projects with broad co-benefits. Or, businesses with more specific corporate sustainability goals can work with our team to develop custom carbon offset programs.

By working with our team of sustainability experts, you can balance your carbon footprint while supporting positive outcomes in communities around the world. Reach out to see how you can expand your impact with high-quality carbon offsets.

Ready to Support Carbon Projects?

Offset your carbon footprint while helping local communities thrive.
Explore our carbon offset portfolio
or connect with our sustainability experts to build a custom offset program that aligns with your goals.


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View Individual Monthly Offset Plans

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3 Affordable Ways to Help the Environment Within Your Control https://terrapass.com/blog/3-affordable-ways-to-help-the-environment-within-your-control/ Thu, 02 Oct 2025 19:49:35 +0000 https://terrapass.com/?p=1231307 If you’re feeling discouraged about the challenges facing environmental progress, you’re not alone. In several aspects, we are increasingly feeling the effects of climate change while confidence in the ability of government to reduce climate change is fading. Policy changes also affect individuals’ abilities to take climate action. For example, the $7,500 tax credit for […]

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If you’re feeling discouraged about the challenges facing environmental progress, you’re not alone. In several aspects, we are increasingly feeling the effects of climate change while confidence in the ability of government to reduce climate change is fading. Policy changes also affect individuals’ abilities to take climate action.

For example, the $7,500 tax credit for buying new electric vehicles (EVs) and $4,000 credit for used EVs expired at the end of September. Similarly, major tax credits for renewable energy and energy efficiency initiatives stemming from the 2022 Inflation Reduction Act are also expiring, including some personal credits being phased out at the end of 2025 and some business credits expiring over the next couple years.

The loss of financial incentives could make it more expensive for individuals and businesses to reduce their environmental footprints. At the same time, energy bills could collectively rise, with less construction of new renewable power generation — lower supply, combined with rising demand such as from AI data centers, could lead to higher prices, as many analyses show.

While these changes affect momentum toward reducing carbon emissions, that doesn’t mean that you’re powerless. Focusing on what you can control still leaves you with a lot of levers to pull in your personal life or for your business.

Here are three of the best and most affordable ways to reduce your environmental impact:


1. Audit Your Energy Efficiency

Despite the loss of some financial incentives, there’s still likely some low-hanging fruit you can pick.

The average American spends $2,000 per year for home energy, yet about 10%-20% of that — $200-$400 — could be wasted due to drafts, air leaks, and outdated HVAC systems, according to the U.S. Department of Energy.

For a similar price — averaging $437, according to Angi —you could get a professional home energy audit, and you still have until the end of the year to claim a tax credit for up to 30% of the cost of this service.

This audit can help you identify where you’re wasting energy and guide improvements that will pay off for years to come. Even if net savings take a few years, your immediate environmental impact begins as soon as you reduce energy usage.

In doing so, you can find ways you’re wasting energy and make home improvements that increase your efficiency for years to come. That can lower your energy bills and save money in the long run. Even if it takes a few years to see net savings, after accounting for the cost of the audit and any upgrades you make, you can make an immediate environmental impact by reducing your energy usage.

Research also suggests that your home energy upgrades can influence your neighbors. So, you might be able to make more impact in your community than you realize.

Use our carbon footprint calculator to estimate your home energy, driving, and travel emissions.


2. Buy or Lease an EV Anyway

The loss of EV tax credits does directly affect their affordability, but you shouldn’t assume that makes these cars too expensive for you.

Because EVs tend to have much lower fuel and maintenance costs, even a higher initial purchase price might be worth it to you.

An analysis by Vincentric found that 24 out of 54 EVs analyzed had a lower five-year total cost of ownership than comparable gas-powered cars. Yet only five of those 54 EVs qualified for the $7,500 tax credit anyway. So, even with the credit expiring, there are likely plenty of EVs that still save you money overall.

Also, keep in mind that many EV buyers want the latest technology, such as extended battery range. If that’s less important to you, and you primarily want a car for getting around town more efficiently, then you might be able to find a great deal on a used EV.

That could become increasingly feasible as car manufacturers release new EV models and previous leaseholders turn in their two- or three-year-old cars for new ones.

Taking a road trip? You can soften the climate impact of your travel with simple solutions like Terrapass’s EcoTourist bundle.


3. Buy Carbon Offsets

Rather than only focusing on external climate developments, we can start by looking at our own carbon footprints and make a positive impact by purchasing carbon offsets.

Purchasing carbon offsets doesn’t cancel out your emissions, but it does help balance the negative impact of things like flying or driving a gas-powered vehicle. When you buy carbon offsets, your money goes toward projects that remove or reduce carbon emissions, such as by avoiding deforestation or capturing methane from landfills.

The funding from carbon offsets helps make these projects possible, and they often have co-benefits like providing job opportunities in disadvantaged communities and improving biodiversity.

Keep in mind that carbon offsets help you take responsibility for your environmental impact at the individual level. It’s not that you expect your carbon offset purchase to immediately solve a complex problem like climate change, but you can take control over your own footprint.

Moreover, if you’re trying to mitigate your carbon footprint, buying carbon offsets might align better with your budget than bigger sustainability steps that require a few years of planning. For example, you might not have the cash to buy an EV today, and high interest rates might make taking out a loan for a new car impractical. Yet you might have room in your budget for around $20-$30 per month in carbon offset purchases to compensate for the emissions you have now as you work to reduce them over time.

To balance the majority of your family’s emissions, for instance, you could enroll on Terrapass’s Carbon Balanced Living Plan. A couple with one car that takes up to five regional or one international flight per year per household could buy a Carbon Balanced Living Plan subscription for $25.67/month.

To get a sense of what it would take to balance most of your emissions, you can use Terrapass’s carbon footprint calculator. From there, you can figure out the cost of this balancing via carbon offset purchases.


Final Thoughts

It’s not a perfect solution, and it would be great if individuals, businesses, and government were all moving in the same direction toward mitigating climate change. Short of that, however, focusing on what you can control and taking positive steps can help.

Small steps whether that’s auditing your home, switching to an EV, or offsetting emissions can collectively add up to big impact over time.

 

Take action today, starting with what’s in your control.

Get Started on Your Sustainability Journey

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Carbon Removal Credits and How Do They Differ from Carbon Reduction Credits https://terrapass.com/blog/carbon-removal-vs-carbon-reduction-credits/ Tue, 05 Aug 2025 21:33:19 +0000 https://terrapass.com/?p=1224656 A common issue in sustainability is the constantly changing language of climate action. It feels like many climate science organizations use conflicting language to talk about the same thing, such as carbon offsets vs. carbon credits, and carbon credits vs. carbon removals. It can be frustrating and confusing, but this is not just changing words […]

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A common issue in sustainability is the constantly changing language of climate action. It feels like many climate science organizations use conflicting language to talk about the same thing, such as carbon offsets vs. carbon credits, and carbon credits vs. carbon removals. It can be frustrating and confusing, but this is not just changing words for the sake of change. The new language generally introduces important distinctions that help improve our direction on climate action.

While carbon removals have emerged as a new term in the carbon credits landscape, these are not new or different than what many carbon credit buyers are already familiar with. Carbon removals have been part of the voluntary carbon market for years, and Terrapass has long offered high-integrity carbon removals.

However, the reason why the terminology is changing is because carbon removals refer to a specific type of carbon credit stemming from carbon removal projects, rather than those that avoid emissions.

What Is Carbon Removal?

Carbon removal is essentially exactly what it sounds like — it’s the practice of removing carbon that already exists in the atmosphere and storing it for an extended period.

For example, Direct Air Capture (DAC) is a technology that draws in air and filters the CO₂. The non-CO₂ air then returns to the atmosphere, while the captured concentration of CO₂ can be managed in several ways, such as by injecting it into specific types of rock formations for long-term storage.

To finance these projects, developers often sell carbon removal credits to buyers looking to offset their greenhouse gas emissions. One carbon removal credit represents the removal of 1 metric ton of carbon dioxide equivalent (CO₂e) from the atmosphere.

While buying carbon removal credits is not a substitute for reducing your own emissions, carbon removal still plays an important role in tackling the climate crisis. For example, a company might switch from a fossil fuel to a renewable energy supplier to cut emissions, yet cutting other sources of emissions like from business travel or data centers might be less in your control.

So, purchasing carbon removal credits can finance the positive impact of removing CO₂e from the atmosphere to balance the negative impact of the emissions you directly or indirectly cause elsewhere.

To get a better sense of the emissions you want to offset, use our carbon footprint calculator to see the carbon impact of your company’s on-site energy usage, travel, server usage, and more.

Carbon Removal Credits vs. Carbon Reduction Credits

Carbon removal credits and carbon reduction credits are related but not interchangeable. Both represent an offset of 1 metric ton of CO₂e per credit, but here’s the difference:

  • Carbon removal credits are generated when a project removes a greenhouse gas from the atmosphere.
  • Carbon reduction credits are generated when a project prevents a greenhouse gas from entering the atmosphere.

Carbon reduction credits are also sometimes called carbon avoidance credits, as carbon reduction projects — like methane gas capture at landfills — avoid new emissions that would otherwise enter the atmosphere if it were not for those projects.

However, sometimes carbon reduction credits are viewed as separate from carbon avoidance credits. While reduction credits finance lower emissions vs. business-as-usual, sometimes avoidance activities like reducing deforestation, which help prevent carbon stored in trees from going back into the atmosphere, are viewed as a separate category.

For simplicity’s sake, though, we view the most important distinction as being carbon removals vs. carbon reduction/prevention. Greenhouse gas reductions can also involve areas such as reducing deforestation, which is a bit less direct than landfill gas capture but still prevents greenhouse gas emissions from entering the atmosphere — because if those trees were otherwise cut down, more emissions would ultimately enter the atmosphere, given the loss of the trees’ carbon sequestration capabilities.

Given these differences in types of carbon reductions, sometimes carbon reduction credits are viewed as separate from carbon avoidance credits, where reduction credits finance activities that reduce emissions vs. the baseline scenario.

Types of Carbon Removal Projects

There are many different types of carbon removal projects, which vary based on how long they store carbon and whether the solutions primarily come from nature or engineered solutions.

In terms of storage, carbon removal projects are one of the following:

  • Durable vs. Non-Durable Carbon Removals: Durable carbon removals are those that store the carbon for hundreds or thousands of years — perhaps even millions — before ending up back in the atmosphere. In contrast, non-durable carbon removals provide shorter storage periods, generally less than a century but often still decades.

Both durable and non-durable carbon removals have their pros and cons. Durable storage has greater permanence. However, there may be technical limitations and higher costs. Some non-durable carbon removal projects like certain nature-based solutions also have additional benefits beyond emissions effects, such as promoting biodiversity.

In terms of how carbon removals are created, projects fall into one of two categories:

  • Nature-Based vs. Engineered: Nature-based solutions remove carbon from the atmosphere through systems that exist in nature. Human intervention may be needed to get the ball rolling, but nature does the rest. For example, reforestation is a nature-based solution that can involve planting trees in an area previously cleared for pasture. As those trees grow, so too do their carbon dioxide removal capabilities.
  • In contrast, engineered carbon removals are technology-focused solutions. Nature may still be involved, such as how DAC can include injecting CO₂ into rock formations, but that still largely depends on engineering.

Zefiro Methane OOG 1 – Drake

Examples of Nature-Based vs. Engineered Carbon Removal Projects

In general, engineered solutions correlate with durable carbon removals and nature-based solutions correlate with non-durable carbon removals, such as due to the limited lifespan of plant life that stores carbon vs. geological formations that can last millennia. Still, the storage timeframe depends on the specific project.

Nature-based solutions include improved forest management that facilitates new forest growth, such as the Restauración Forestal project in Mexico’s Yucatán Peninsula that Terrapass supports. Another type of nature-based carbon removal project involves regenerative agriculture, where practices like reduced soil tillage and planting cover crops enable the soil to store more carbon, as seen in the AgreenaCarbon Project, which works with farmers in Europe.

Blue carbon credits are another exciting area of nature-based carbon removals that incorporates the vast potential for coastal marine ecosystems to store carbon. For example, some mangrove conservation projects not only protect these ecosystems but also rehabilitate them to form new growth, thereby sequestering more carbon. Blue carbon projects could also involve practices like cultivating seagrasses and kelp that can store carbon.

Some examples of engineered solutions include direct air capture, as mentioned, as well as enhanced rock weathering, which essentially speeds up the weathering process of certain rocks, like basalt. In doing so, the weathered rocks expose certain minerals that react with existing CO₂ dissolved in water, such as from rain, to form new rocks or a solution that makes its way into the ocean to provide long-term carbon storage.

Biochar is another emerging engineered solution gaining momentum in voluntary carbon markets. This solution involves controlled burning of organic waste at high temperatures to create a carbon-rich substance that can be added to soils. Biochar is similar to charcoal, but in addition to more circular production processes, biochar is intended to lock carbon away for hundreds or thousands of years and improve soil health, while charcoal is burned for fuel, thereby releasing the carbon back into the atmosphere.

Examples of Carbon Reduction Projects

In contrast with nature-based and engineered carbon removals that draw down carbon that already exists in the atmosphere, carbon reduction projects prevent or avoid new emissions that would otherwise enter the atmosphere, thereby generating emissions reduction credits. Some examples include preventing deforestation to reduce carbon emissions that would otherwise result from clearing these ecosystems, as seen in the Tahuamanu REDD+ Project that Terrapass supports in Peru. That project involves partnering with local communities and authorities to prevent deforestation in the Amazon rainforest.

Another example of a carbon reduction project involves capping orphan oil and gas wells, as Terrapass is supporting in Oklahoma with Zefiro Methane, to prevent potent greenhouse gas emissions that would otherwise escape from these sites.

As mentioned, carbon reduction credits can also come from capturing and destroying landfill methane, as Terrapass is supporting with the Gaston County Landfill Gas Destruction Project in North Carolina. In addition to the benefit of avoided emissions by capturing methane, this carbon project also involves producing renewable energy from the gas.

Explore more carbon reduction and carbon removal projects that align with your social and environmental goals. Terrapass offers a broad range of carbon credits that you can use to finance added benefits beyond emissions reductions or removals.

Do Carbon Removal and Carbon Reduction Credits Cost the Same?

Typically, carbon removal credits are more expensive than carbon reduction credits. That is primarily driven by the higher development/operating cost of carbon removal projects. Also, supply and demand affect these prices. Currently, there is high demand for carbon removals but limited supply.

Choosing Between Carbon Removal Credits vs. Carbon Reduction Credits

While cost can be one motivation, companies may be wondering whether they should choose carbon removals or carbon reductions from an operational/sustainability perspective. Both carbon removals and carbon reductions have their place, and arguably both are necessary for addressing climate change.

In a way, they are equivalent in the sense of representing the same amount of CO₂e removed or avoided. However, different greenhouse gas accounting standards may prioritize carbon removals for reaching net-zero goals, given that removals can address the already high concentration of greenhouse gases that are already warming the planet.

Think about it like financial accounting. If a company is over budget, avoiding new spending would be like carbon reductions. That’s important, but it doesn’t get the company out of the hole. You would also need to return past purchases for refunds or find revenue to balance the budget. That’s similar to how carbon removals like DAC return carbon from the atmosphere back into the earth, or how reforestation expands the ability for the planet to absorb existing emissions.

But if the company continues to overspend, that doesn’t solve the problem. There are limits to what can be refunded or how the budget can be expanded, just like there are technological, environmental, and financial limits to carbon removals. Likewise, if you cancel an upcoming order and use those savings to fund another part of the business, that does not get you any closer to balancing the books, just as would happen if you use carbon reductions as license for new emissions elsewhere.

That’s why any type of carbon credit needs to be used alongside emissions reductions within your own organization.

Terrapass is guided by the Oxford Principles for Net Zero Aligned Carbon Offsetting on how to incorporate carbon removals and carbon reductions into a carbon offsetting strategy. The Oxford Principles successfully acknowledges the emergent state of carbon removal generation capacity and prescribes a gradually increasing adoption of carbon removals, supplemented by the use of high-integrity carbon reductions (avoidance) credits in the near term.

In doing so, your organization can prevent the escalation of emissions in the near term while helping the planet get toward a more balanced level of emissions in the future.

You can calculate your business or individual emissions using the Terrapass carbon footprint calculator and then purchase carbon credits to offset the emissions you can not yet reduce. Or, you might even choose to become carbon-negative through a combination of emission reduction strategies and buying carbon credits.

We can even help you create custom carbon offset programs, using your preferred mix of removals and emissions reduction credits to balance out the impact of your products and services. Get in touch with a carbon credit advisor today.

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Calculate Your Flight Carbon Footprint Before Hitting the Skies https://terrapass.com/blog/calculate-your-flight-carbon-footprint-before-hitting-the-skies/ Wed, 25 Jun 2025 18:20:25 +0000 https://terrapass.com/?p=1220556 How to Travel More Sustainably This Summer School’s out for summer, and you’re excited to sightsee with family across Europe or relax with friends on a tropical island. But as much as you’d like to enjoy your time off without a care in the world, the reality is that the emissions from airplanes negatively impact […]

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How to Travel More Sustainably This Summer

School’s out for summer, and you’re excited to sightsee with family across Europe or relax with friends on a tropical island. But as much as you’d like to enjoy your time off without a care in the world, the reality is that the emissions from airplanes negatively impact the planet. However, that doesn’t mean you should never fly or have to feel guilty about every vacation.

Everyone has their own morality, and sometimes your values conflict, such as wanting to take care of the planet while experiencing the world. Instead of taking an all-or-nothing approach to flying, an alternative could be to take a more mindful approach to your travel, starting by calculating the carbon footprint of your flights.

Start by Calculating Your Flight’s Carbon Footprint

Once you know the airplane carbon emissions, you can make choices that might feel more aligned with your values, such as through one or a combination of the following solutions.

Use our flight carbon calculatorranked as one of the top travel carbon footprint calculators in multiple academic studies [1],[2] — to see a detailed estimate of CO2e emissions of your air travel. From there, you can easily buy carbon offsets equivalent to those flight emissions.

Choosing a Different Mode of Transportation

While flying is convenient, it’s not always the most efficient environmentally. The average CO2e emissions per flight per person works out to roughly 250 kg per hour of flight time, according to Carbon Independent. This hour of flight time equates to roughly 637 miles driven in an average gas-powered car, according to the EPA.

So, when you add up the full flight emissions for everyone in your group vs. equivalent emissions from driving, you’ll have to weigh which one has the lowest impact. However, don’t assume driving is always better. A solo traveler taking a cross-country flight from New York to LA, for example, likely emits less than if you drove the same distance in a gas-powered car. But if you had multiple people in the car, or if you had an electric vehicle, the calculations between flying vs. driving emissions would change.

Other transportation options like trains, if applicable to your travel plans, might be even more efficient, but don’t make any assumptions here either. Some long-distance train trips end up emitting more than flying, as one New York Times reporter found. However, shorter train trips or ones on electrified tracks are likely more efficient.

If you’re traveling across a large body of water, driving isn’t an option, of course, but don’t assume a cruise is better. Again, much depends on the specifics, but an airplane is often more efficient than a cruise.

Choosing a Different Destination or Route

As you consider your mode of transportation and the potential carbon footprint of your flight, you might end up choosing a different destination or route for your travel. Instead of flying or taking a long cruise, for example, you might decide to take a more local trip that’s an efficient train ride or car ride away.

You also might still decide to fly, but as you consider destinations, you might look for below-average CO2 flights using a tool like Google Flights, where you can see if certain routes have higher or lower emissions than usual. That might be due to factors such as the type of aircraft or the plane’s route, and you might find that flying a further distance doesn’t always equate to more airplane emissions. A direct flight, for example, generally saves emissions compared to the combined impact of connecting flights.

Finding Other Ways to Reduce Your Carbon Footprint

Whether you’re set on taking a certain vacation or you need to fly for a work trip that’s out of your hands, there are still things you can do to reduce the net impact of your travel.

For example, if you have two trips planned and you calculate the impact these have, you might compromise by only taking the one that feels most important and canceling the other. Or, you might find other areas of your life where you can reduce your personal carbon footprint, such as by changing your driving habits, eating less meat, or switching to renewable energy in your home.

These sustainability choices don’t necessarily give you license to fly as much as you want, but we all have to make tradeoffs in life. You might find that you’re more comfortable with the carbon emissions of a particular flight if you can cut back in other areas.

Use our carbon footprint calculator to see how your annual driving, public transit usage, air travel, and home energy usage add up.

Buying Carbon Offsets

Lastly, you might decide to buy carbon offsets to help compensate for your carbon footprint, whether you decide to fly or use other forms of transportation for your travels.

Although carbon offsets are not meant to be a substitute for reducing your emissions, meaning they don’t give you free rein to fly all over the world without care, they can help to balance the negative impact of your travel with positive impact in other areas. For example, you can purchase carbon credits that help finance important projects such as reforestation or landfill methane capture. These projects can compensate for the carbon footprint of your air travel by removing emissions from the atmosphere or preventing emissions that would have otherwise occurred.

To some extent, you can think about it like calories. If you indulge in a doughnut, you might try to offset those calories by going for a run the next day. They don’t always perfectly counteract each other, as there can also be health impacts beyond the calories, but in general, you’re trying to find balance. Similarly, you might indulge in a flight for a summer vacation and try to balance that environmental impact by buying carbon offsets.

There’s a lot to consider beyond emissions, such as airplane air pollution and noise pollution, sort of like how a doughnut might also be bad for your cholesterol. However, carbon offset programs can have positive social benefits beyond emissions, such as supporting job creation, similar to how running might help your cardiovascular health, beyond the caloric effects.

Start Balancing Your Carbon Footprint

Whether you already have summer travel plans booked or you want to start balancing other areas of your life, you can take advantage of the variety of carbon offset plans that Terrapass offers.

One option is to use our flight carbon calculator and purchase carbon credits based on the specific amount of emissions from that trip, or you can directly purchase flight carbon offsets based on the number of miles you’re traveling. Terrapass has been ranked as one of the top travel carbon footprint calculators by multiple academic studies, so you can have confidence in calculating your flight emissions with us. You also might prefer a more overarching plan that might help balance the flight and other aspects of your vacation with our EcoTourist Bundle.[1],[2]

If you want to balance your carbon footprint on more of an ongoing basis, rather than just for specific flights, you might choose options like our Carbon Balance Living subscription that starts at just $8.34 per month, depending on your circumstances.

By calculating your carbon footprint and buying carbon offsets, you can get a better sense of how your actions affect the environment and you can start making changes that support a more sustainable planet.

Start reducing your carbon footprint today, before relaxing on your summer vacation.

Calculate Your Carbon Footprint & Offset Now

Sources

  • [1] Arif, Elizabeth, Anupama A. Sharan, and Warren Mabee. An Analysis of Compatibility Between Popular Carbon Footprint Calculators and the Canadian National Inventory Report. 12 June 2025.
  • [2] Mulrow, et al. The State of Carbon Footprint Calculators: An Evaluation of Calculator Design and User Interaction Features. December 2018.

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Small Businesses Can Have a Big Environmental Impact: 5 Climate Change Solutions for SMEs https://terrapass.com/blog/small-businesses-can-have-a-big-environmental-impact-5-climate-change-solutions-for-smes/ Wed, 28 May 2025 19:06:55 +0000 https://terrapass.com/?p=1217642 It might not seem like it at first glance, but small businesses can do a lot to help solve the climate crisis. As a small business owner or manager, you might have a desire to make a bigger environmental impact. But given the scope of the climate crisis, can small businesses really move the needle? […]

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It might not seem like it at first glance, but small businesses can do a lot to help solve the climate crisis.

As a small business owner or manager, you might have a desire to make a bigger environmental impact. But given the scope of the climate crisis, can small businesses really move the needle? The answer is a resounding yes.

While it’s true that the carbon footprint and overall environmental effects of a large business often outweigh those of a small business on a one-to-one basis, that doesn’t mean small businesses can’t make a difference.

Estimates vary, but collectively, small and medium enterprises (SMEs) likely account for a larger share of global greenhouse gas emissions than large businesses do. SME greenhouse gas emissions add up to around 50%-70% of all business sector emissions and 10%-30% of energy consumption, according to an OECD analysis.

Plus, the sheer volume of small businesses — accounting for 99.9% of all businesses in the U.S. — means that individuals and other businesses often have more touchpoints with small businesses, even if they spend more with certain large businesses.

For example, in your own life, perhaps you do most of your shopping at a big-box store, but several of the products you buy there might be from SMEs that supply that retailer. Meanwhile, the plumber who unclogs your sink, the diner you go to on Saturday mornings, and the daycare you take your child to are perhaps all small businesses.

All of these interactions mean that small businesses have many opportunities to influence stakeholders such as customers, suppliers, and other small businesses. In other words, the climate change solutions you adopt can have a multiplier effect, and that can make a big difference in solving the climate crisis.

Use our carbon footprint calculator to see the carbon impact of your company’s on-site energy usage, travel, server usage, and more.

With that in mind, here are five ways to punch above your weight as a small business and improve your environmental impact:

1. Join a Sustainability-Related Network

Small businesses can amplify their environmental impact by joining a sustainability-related network.

For example, by becoming a B Corp, you’re not only signifying to stakeholders that you’re committed to environmental and social responsibility, but you also become part of a global network that advocates for positive change. You can also join B Local groups to tap into an ecosystem of other B Corps in your community. Within these groups, you can attend events like educational sessions that can ultimately help you improve your impact assessment score or community service events that help you make an impact and interact with your neighbors.

Another type of network to join is 1% for the Planet, where you commit to donating at least 1% of revenue to approved environmental organizations. In doing so, your impact can extend beyond the direct amount donated, as you can display the 1% for the Planet logo on your products and website to inspire others to give back. And this can pay off for businesses, considering that 46% of U.S. consumers say the 1% for the Planet logo positively affects their purchasing decisions, according to the organization.

It might seem like you have to be a large business to join these types of groups, but the reality is that companies of all sizes are eligible.

2. Host a Local Environmental Event

Even if you’re not part of a sustainability-related network, you can host your own event to build brand awareness and encourage other individuals and businesses in your community to improve their environmental impact.

For example, a restaurant in an oceanfront community can organize a beach cleanup day, which directly affects your local environment while inspiring more big-picture waste reduction. A garden store can host an event on native planting and provide seeds for attendees to take home, which can also make a local environmental impact while encouraging people to think more about issues like air pollution, biodiversity and their water footprint.

Even if you’re a B2B company and don’t have space to host an event, you can still get involved. For example, a marketing agency can partner with another business that can host, with the agency promoting the event on social media and speaking at the event about ways to more effectively talk about the environment in your business or personal life.

3. Engage in the Circular Economy

Another way to make a significant impact is to engage in the circular economy, which the Ellen MacArthur Foundation defines as “a system where materials never become waste and nature is regenerated.”

The first principle of the circular economy, according to the foundation, is eliminating waste and pollution. In many cases, this requires designing new systems. For example, some cafes serve drinks in reusable glass jars, even for takeaway customers. Customers pay a small deposit and can then swap their jars for clean ones when returning to the cafe. This can reduce packaging costs, reduce waste, and involve customers in circularity.

The second principle is circulating products and materials at their highest value. This could involve practices such as having a rental or resale component of your business, rather than having customers buy items that they’re only going to use once before eventually throwing them out. In many cases, this can be another revenue driver for businesses or reduce costs since you’re not ordering as many new products.

The third and last principle is to regenerate nature. This often applies to areas like farming, where regenerative practices like growing trees alongside crops can improve soil health and biodiversity. While your business might not directly be involved with regenerative agriculture, even small choices like the coffee you serve in your office can have a significant effect in terms of conserving natural resources, limiting soil erosion, cutting carbon emissions, etc.

4. Invest in Renewable Energy

If you have the capital to do so, investing in renewable energy, like by adding a solar array to your roof, can potentially save money in the long run while directly improving your environmental impact.

Not only does switching to renewable energy cut your own emissions, but it can also provide an important signal to employees and customers. For example, if customers see solar panels on your building, that’s a visual reminder that could encourage them to review their own energy use and engage in more sustainable practices.

Even if you don’t directly purchase renewable energy, you can still make a significant environmental impact, such as by switching to a supplier that uses wind power. In turn, you can share information with your customers, such as how your products are manufactured in a facility that sources its electricity from wind, which can similarly inspire them to review their own environmental impacts and choose products that help the natural environment.

5. Buy Carbon Credits

Not every business has the funding to invest in renewable energy generation or make significant shifts like finding new manufacturing partners. For hard-to-cut emissions, small businesses can buy carbon credits to help offset their carbon footprints. These credits help fund carbon reduction projects such as reforestation, landfill methane capture, and orphan well closure. The projects rely on the sale of carbon credits every year to fund their continued operation.

Get started with a simple monthly subscription of carbon credits for just $8.50 per employee that offsets what many businesses emit or use our carbon footprint calculator to calculate a more specific number for your business.

Buying carbon credits can also be an effective way to amplify your impact. You’re not just offsetting your own greenhouse gas emissions. Funding these projects also supports several UN Sustainable Development Goals. For example, forest growth not only absorbs more carbon but can also protect vital habitat and improve overall environmental quality, such as by supporting healthy waterways that provide clean water for individuals.

Ultimately, small businesses can have significant environmental effects that extend far beyond the size of their operations.

Terrapass makes it easy to calculate your carbon footprint and purchase carbon credits to offset your emissions, and we can even help you create custom carbon offset programs to offer to customers.

Take a look at our suite of small business solutions and reach out to see how you can start improving your environmental impact today.

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SBTi Adds Climate Finance, Emission Cuts Still Priority https://terrapass.com/blog/sbti-adds-climate-finance-emission-cuts-still-priority/ Tue, 06 May 2025 17:05:29 +0000 https://terrapass.com/?p=1215194 Revision of SBTi Net Zero Standard and the Role of Carbon Credits The Science Based Targets Initiative (SBTi) is undertaking its first broad revision of the Net Zero Standard. That involves a big effort to evaluate successes and weaknesses of the past 4 years. That also involves the challenge of adhering to science-aligned business emission […]

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Revision of SBTi Net Zero Standard and the Role of Carbon Credits

The Science Based Targets Initiative (SBTi) is undertaking its first broad revision of the Net Zero Standard. That involves a big effort to evaluate successes and weaknesses of the past 4 years. That also involves the challenge of adhering to science-aligned business emission reductions while at the same time accommodating the many real and difficult barriers to supply chain transformation that face businesses who in many cases are just trying to survive. The revision introduces improvements in many areas, but this discussion focuses on the use of carbon credits, which is one of the most significant elements.

A gap in the current Net Zero Standard is the absence of criteria to drive global climate finance. To fix this, SBTi seeks to:

“Provide a stronger incentive by recognizing companies that not only set science-based targets to reduce emissions within their operations and value chain but take responsibility for addressing the impact of emissions released into the atmosphere as they undergo their net-zero transformation.” (1)

SBTi’s solution in the Net Zero Standard revision is to create a two-tier program. The top-tier continues to be science-aligned business emission reduction. SBTi adds a new second-tier which they refer to as “recognition” for companies who achieve net-zero progress and then address Scope 1 Residual Emissions and Ongoing Emissions annually with high-integrity carbon credits.

Two Key Elements of the Net Zero Standard Revision Related to Carbon Credits

  • Companies have the option to start using Carbon Removals now to achieve near-term and long-term carbon removal goals for Scope 1 Residual Emission requirements in their net-zero plan.
  • SBTi will recognize companies who use Beyond Value Chain Mitigation (BVCM) to address their Ongoing Emissions annually, but only if they also achieved their carbon reduction goals for the year.

This solution “maintains its focus on the mitigation hierarchy by prioritizing the reduction of emissions across company operations and value chains” while it also “acknowledges the urgency of addressing emissions released into the atmosphere today and the critical role that companies can play in mobilizing finance for mitigation activities beyond their value chain.” (1)

This formal recognition by SBTi of companies who immediately start using Carbon Removals and BVCM has the potential to make a big impact. By shifting its view of high-integrity carbon credits from encouraged but ignored in the first Standard to reported and recognized in the new Standard, SBTi can bring significant visibility to much-needed global climate finance. This is an important signal for SBTi participants as well as non-participants who look to SBTi for guidance on credible climate action.

What is SBTi?

The Science Based Targets initiative (SBTi) is a corporate climate action organization that develops guidance on how companies can set greenhouse gas (GHG) emissions reduction targets to reach net-zero by 2050. Its founding partners are CDP, the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the Worldwide Fund for Nature (WWF).

The first Corporate Net-Zero Standard was launched in 2021. Upon launch, it was quickly adopted by leading corporate sustainability organizations across the world and looked to informally by many more, making SBTi an important business climate action framework. More than 1,700 businesses globally have had their science-based net-zero targets validated. (15) SBTi has had great success in focusing companies on reducing their carbon emissions on a science-aligned trajectory, and SBTi participants have made significant progress.

SBTi Definitions

Before we discuss Net Zero Standard revisions, we first need to introduce some of the language of SBTi:

  • Residual Emissions: A company’s carbon emissions that remain after a company has achieved its long-term net-zero emission target and after all possible abatement measures have been implemented, likely around 2050. Residual Emission are projected to be <10% of base year emissions.
  • Ongoing Emissions: The carbon emissions that occur every year while a company works to achieve its long-term net-zero emission goal.
  • Beyond Value Chain Mitigation (BVCM): BVCM is defined in the SBTi Corporate Net-Zero Standard as “mitigation action or investments that fall outside a company’s value chain, including activities that avoid or reduce GHG emissions, or remove and store GHGs from the atmosphere.” (1) This includes funding carbon reduction projects outside of a company’s value chain through the purchase of high-integrity carbon credits (removals or reductions).
  • Carbon Removal: A Carbon Removal is a specific type of carbon credit that is generated when a project removes a greenhouse gas from the atmosphere. Carbon Removals are part of the voluntary carbon market and Terrapass has offered high-integrity Carbon Removal credits for several years.
  • Carbon Reduction (Avoidance): A Carbon Reduction (Avoidance) is another type of carbon credit that is created when a project prevents a greenhouse gas from entering the atmosphere. Terrapass also offers high-integrity Carbon Reduction credits.

What is Happening to the SBTi Net Zero Standard?

On March 18, SBTi released a draft revision to its Corporate Net-Zero Standard (v2.0). A consultation process for feedback on the revision will last a minimum of 60 days. The final version is expected to go live in spring 2026. While there have been isolated changes to the Net Zero Standard in the past, this is the first broad revision.

In the Corporate Net-Zero Standard (v1.0), it was generally accepted that SBTi required the use of Carbon Removals to neutralize Residual Emissions only after a business achieved its net-zero goal, most likely around 2050. Also, while SBTi informally encouraged companies to use high-integrity carbon credits to address Ongoing Emissions, it did not recognize companies for taking this action. In fact, SBTi is commonly viewed as driving a single-minded focus on reducing business emissions.

How Does the Net Zero Standard Revision Use Carbon Removals?

As mentioned earlier, in the first Net Zero Standard it was generally interpreted that Carbon Removals were only required once companies reach net-zero, typically around 2050, and only for up to 10% of base year emissions. However, we can’t just flip a switch in 2050 and suddenly remove all Residual Emissions. For voluntary carbon markets to build that capacity, we need decades of investment and development.

The new Net Zero Standard recognizes the need to scale-up Carbon Removal capacity over time so that we can achieve our full Carbon Removal goals by 2050. In the new Net Zero Standard:

  • SBTi will require companies to set near-term and long-term carbon removal targets for projected Scope 1 Residual Emissions.
  • Interim removals can be done for up to 10% of projected baseline Scope 1 Residual Emissions. SBTi will recognize interim removals, and they are considering making interim removal targets mandatory.
  • SBTi is also considering whether the carbon removals must be durable like direct air capture or whether companies can start with less durable nature-based removals like reforestation.

At Terrapass, we have offered Carbon Removals for years and we are continuing to build our supply capacity to meet the growing demand. We have also included Carbon Removals in our online Global Portfolio since 2023. Terrapass values the guidance from Oxford Principles for Net-Zero Aligned Carbon Offsetting. It recognizes the emerging state of Carbon Removal generation capacity and prescribes a gradually increasing adoption of Carbon Removals supplemented by high-integrity Carbon Reduction credits in the near term.

Wrap-Up

Without question, we need SBTi to set our north star for business emission reduction. It has always successfully maintained a strict science-aligned roadmap. Practicality has been the issue. We urgently need many more companies taking action on their carbon emissions and on global carbon emissions. It is now up to SBTi whether they can modify the Net Zero Standard to achieve exponential growth in climate action.

Based on the draft Net Zero Standard revision, it is clear that SBTi will continue to set the standard for science-aligned business emission reduction, but their potential to bring more companies into climate action is still unclear. Does the revision give companies enough alternatives to accommodate highly varying capabilities and resources? Should it allow carbon removals in more areas? Or will SBTi be a smaller, exclusive program that only some companies can follow? Time will tell.

Ready to Take Climate Action Beyond Your Value Chain?

At Terrapass, we help medium and large businesses accelerate their net-zero journey with high-integrity carbon credits, removals, and custom sustainability strategies. Whether you’re aligning with the revised SBTi Net Zero Standard or launching your carbon reduction plan, our experts are here to guide you.

Connect with us today and discover how we can help your organization achieve measurable climate impact.

Note: This write-up is intended to provide high-level commentary on the proposed Net Zero Standard revision. SBTi is a complex and technical program. Please refer to SBTi resources for specific details and technical guidance.

References

  1. https://sciencebasedtargets.org/resources/files/Net-Zero-Standard-v2-Consultation-Draft.pdf
  2. https://www.energy.gov/topics/carbon-negative-shot
  3. https://sustainabilitymag.com/articles/why-sbti-has-delisted-more-than-200-high-profile-companies
  4. Microsoft, P&G, Unilever and Walmart among 239 companies to miss net-zero deadline | Trellis
  5. https://www.weforum.org/stories/2023/03/ippc-report-natural-climate-solutions-for-financing-nature/#:~:text=Natural%20climate%20solutions%20consist%20of,or%20highly%20dependent%20on%20nature.
  6. https://www.un.org/sg/en/content/sg/statement/2023-03-20/secretary-generals-video-message-for-press-conference-launch-the-synthesis-report-of-the-intergovernmental-panel-climate-change
  7. https://climate-advisory-board.europa.eu/reports-and-publications/scaling-up-carbon-dioxide-removals-recommendations-for-navigating-opportunities-and-risks-in-the-eu
  8. https://www.energy.gov/fecm/carbon-dioxide-removal
  9. https://www.ipcc.ch/report/sixth-assessment-report-working-group-3/
  10. https://marginalcarbon.substack.com/p/what-needs-to-change-in-the-sbti
  11. https://www.forbes.com/sites/phildeluna/2025/02/17/why-the-science-based-targets-initiative-are-turning-to-carbon-removals/
  12. https://climate-advisory-board.europa.eu/news/new-report-from-the-eus-climate-advisory-board-outlines-recommendations-to-scale-up-carbon-dioxide-removals-while-addressing-opportunities-and-risks
  13. https://marginalcarbon.substack.com/p/what-needs-to-change-in-the-sbti
  14. https://www.milkywire.com/articles/bvcm-is-back
  15. https://sciencebasedtargets.org/target-dashboard

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Does Your Personal Carbon Footprint Make a Difference? https://terrapass.com/blog/does-your-personal-carbon-footprint-make-a-difference/ Tue, 15 Apr 2025 14:37:22 +0000 https://terrapass.com/?p=1212819 Why Your Carbon Footprint Still Matters – Even If 100 Companies Cause 70% of Emissions If you’ve ever seen the stat that just 100 companies are responsible for over 70% of the world’s emissions, you may think that proves that your personal carbon footprint doesn’t matter when it comes to solving the climate crisis. But […]

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Why Your Carbon Footprint Still Matters – Even If 100 Companies Cause 70% of Emissions

If you’ve ever seen the stat that just 100 companies are responsible for over 70% of the world’s emissions, you may think that proves that your personal carbon footprint doesn’t matter when it comes to solving the climate crisis. But that’s simply not true.

For one, this oft-cited stat tends to get misrepresented. The oft-cited study from Carbon Majors shows that 100 fossil fuel producers have been responsible for 71% of global industrial greenhouse gas emissions since 1988. As a Sentient article points out, this focus on industrial emissions — primarily those from fossil fuels — is certainly a major component, but other sources of global emissions such as agriculture also play a major role in causing climate change. 

Even if the stat did mean that 100 companies account for 71% of total emissions, that still doesn’t leave individuals off the hook. 

Your Role in the Emissions Equation

The term carbon footprint was popularized from a 2004 marketing push from oil giant BP, with the company launching a carbon footprint calculator that some argue shifted the focus away from fossil fuel producers and toward consumers. However, carbon footprint calculators have become one of the most important tools we have to battle climate change because they help us see the carbon intensive product choices and behaviors throughout our lives. Even though many people want to live a lower-carbon lifestyle, their consumption patterns don’t always reflect that.  

Altogether, household consumption contributes to over 60% of global greenhouse gas emissions, according to a study published in the Journal of Industrial Ecology.

Use our carbon footprint calculator to see the carbon impact of your vehicle, public transportation, airplane, and home energy consumption.

Individual Carbon Footprint Choices Add Up

Albeit oversimplified, if no one bought things like gasoline or certain plastics, then fossil fuel companies would have little reason to emit. As profit-driven companies, they’re not going to extract petroleum if no one’s buying, for example. 

As Richard Heede, co-founder and co-director of the Climate Accountability Institute (which collaborated with CDP on the aforementioned Carbon Majors report) said in a Vox interview: “to be clear, it’s the consumers that actually burn and demand the fossil fuels that these companies provide.”

Look at what happened during the early days of Covid, for example. In early April 2020, daily global carbon dioxide emissions dropped by around 17% compared to 2019 levels, with nearly half of the change due to reductions in surface transport, which includes cars, trucks, shipping, etc., according to a study published in Nature Climate Change.

Granted, it’s not necessarily fair or accurate to put all the responsibility on individuals. As Heede noted in the Vox article, for example, fossil fuel companies engage in behaviors like lobbying on behalf of their products. 

Moreover, individuals don’t always have control over their choices, or at least have limited options, due to corporate and governmental policies. 

For example, an individual might buy an electric vehicle to avoid gasoline, but they might rent their home and thus can only use public charging stations that still source electricity from fossil fuels. 

But while companies have a significant responsibility to transition away from carbon-intensive products, there’s a chicken vs. the egg problem. Consumers need companies to offer more sustainable choices, but most companies won’t offer them on a widespread basis without assurance that consumers will buy them. 

Governments could also mandate that companies make more sustainable changes, but they have their own “customers” to worry about in the form of voters. If individuals vote out politicians who pass climate regulation, that disincentivizes future politicians from promoting policy that helps the transition to a low-carbon economy.

Yet even when individual choices do prompt change — such as how consumers could stop buying products like shoes made from a high-emitting apparel company, until the company offers more sustainable options. In some cases, though, there’s no practical choice. 

For example, the choice of building materials makes a significant impact on greenhouse gas emissions. Cement and concrete, due to the ways they’re produced, account for up to 9% of all human CO2 emissions per year, according to Scientific American. So, if a hospital decides it wants to build a new facility and tear down an old one, that could have a negative environmental impact, yet an individual having a medical emergency isn’t going to stop an ambulance from going to that hospital in favor of a low-carbon one, if that even exists.

These types of issues help explain why a recent World Resources Institute (WRI) study found that making more climate-friendly choices related to energy, transport, and food could reduce your GHG emissions by around 6.53 tonnes — more than offsetting the current individual average of 6.3 tonnes (granted, the average is skewed by lower-income individuals typically having much lower carbon footprints); yet in practicality, people only reduce about 10% of this amount.

So, individual choices and your personal carbon footprint do matter, but they don’t exist in a vacuum. Decisions by corporations and governments also make a significant impact, but they also need support from individuals. Thus, one of the best ways to get the ball rolling is by starting with yourself and then discussing the issues with your family and friends, much like any grassroots movement.

Once you know your carbon footprint calculation, you can buy carbon offsets that can counteract the impact of those emissions. You can start by offsetting 1,000 lbs of CO2e emissions for just $7.49 per month.

Top Individual Ways to Reduce Carbon Footprint

If you’re looking for ways to reduce your carbon footprint, it’s important to consider what actions typically have the greatest impact. While some positive choices are better than none, realistic constraints, such as time and money, often mean that you — and the planet — are better off focusing on actions that slash carbon emissions the most.

For example, plastic straws have become a hot-button issue, but this is arguably a case of missing the forest for the trees. Research shows that some alternatives aren’t necessarily more sustainable, and regardless, plastic straws typically make up a fraction of overall plastic waste and emissions.

That’s not to say you should use straws with reckless abandon, but if you’re so focused on this issue, rather than the contents of your drink, for example, you could be missing a more significant source of environmental damage.

With that in mind, consider the following ways to reduce your carbon footprint that typically have a large impact, based on WRI research:

1) Drive less

An easy yet effective way to reduce a carbon footprint is to drive less. On average, more sustainable transit has a 14.3% potential reduction in global per capita emissions, according to WRI. 

On the highest end of that scale — above a 30% reduction — is going completely car-free. While things like tackling food waste still matter, going car-free has 78 times more impact than composting, according to WRI.

That said, a more practical solution for many might be shifting to electric or hybrid vehicles that have better fuel economy, which could reduce emissions by over 16%. Even simply working from home more often than driving to an office could lead to more than a 6% emissions reduction. 

2) Fly less

Similar to driving, flying less is also a direct, impactful way to reduce your carbon footprint. 

While it’s technically true that air travel adds a small amount to the world’s carbon budget, that’s misleading, because flying is still limited to a fraction of the world’s population — around 11%, according to WRI. In terms of the actual carbon emissions from a flight, those tend to be some of the highest of any activity you could do. Some international flights even cause more emissions per passenger than what an individual in some parts of the world emits for the whole year.

So, when you can, consider cutting back on flying. Maybe there’s a national park a few hours away that you can drive to for a vacation, rather than flying to a remote island. Or maybe your work trip could really be handled over videoconference, saving time, money, and emissions.

3) Improve home energy usage

Your home can be a major source of emissions, but don’t make the mistake of thinking that changing a few lightbulbs will do the trick on its own. Just look at your energy costs as proof — yes, switching to LED lightbulbs is generally a good move, but that might only save you a few dollars per month.

Instead, some of the biggest contributors to your carbon footprint and energy bill tend to be areas such as energy use for heating, cooling, and cooking. 

Shifting to renewable energy at home has an emissions reduction potential of over 16%, according to WRI. Even if you rely on an energy source like natural gas or oil, you can reduce the impact via a more energy-efficient home, such as with better insulation and more efficient appliances. 

Renovations that improve energy efficiency could reduce per capita emissions by nearly 10%, according to WRI.


4)  Eat more plant-based foods

What you eat and drink also has a big impact on the planet. Your carbon footprint might be lower if you switch to oat milk, for example, rather than just focusing on ditching straws. That’s not to say you can’t do both usually, but sometimes you have to prioritize certain sustainable practices, such as due to budget or time constraints.

Going vegan has an emissions reduction potential of over 13%, according to WRI. So that’s one of the best ways to reduce your carbon footprint.

However, practicality matters. Most people aren’t going to completely change how they eat overnight, but simply decreasing animal-based products has an emissions reduction potential of nearly 5%, according to WRI.

What About Emissions You Can’t Cut?

Realistically, you probably can’t cut your carbon footprint to zero, even by making these changes. Buying an electric vehicle that you charge via solar power is a big step, but even the production of those solar panels and the mining required to source minerals for an EV battery create carbon emissions. Or, maybe you’re trying to fly less, but work requires you to still take some trips.

In these types of cases, one way to minimize your environmental footprint is to buy carbon offsets. These are not meant to be a substitute for emission reductions, but buying carbon offsets can help you counteract the effects of those difficult-to-avoid emissions.

For example, you can buy a flight carbon offset, where funding goes toward projects such as to conserve forests or capture and destroy landfill methane. The idea is that even though your flight still produces emissions, your purchase of the carbon credit finances a carbon reduction or avoidance in another area. Without your funding, those emission savings might not have been possible.

To start moving toward neutralizing your carbon footprint, Terrapass offers a variety of solutions. Our simple carbon offset subscription — the Carbon Balanced Living Plan — starts at just $8.34 per month, or you can purchase specific types of individual carbon offset packages, like if you want to reduce the impact of an upcoming vacation.

By funding climate projects through Terrapass that can offset carbon emissions and spur social benefits like job creation; while also working on direct ways to reduce your carbon footprint, you can play a bigger role in solving the climate crisis. 

Start reducing your carbon footprint today! View online solutions for Individuals and Businesses from Terrapass.

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