7/31/2019 Background Paper: Neighbourhood Offset Program
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Local economic impacts: Instead of sending moneyto fund distant
projects, residents could invest theirmoney locally in projects
that directly impact theirneighbourhood. This can result in more
jobs andresources staying within the community as well as
greater energy security and resiliency to changingenergy
prices.
Local environmental and social impacts: dependingon the location
and type of project, neighbourhoodoffseing projects can also result
in improved airquality, greater awareness and engagement in
energyand environmental issues as well as reduced
carbonfootprint.
Local oversight and management: projects could bemanaged locally
using any of a number of different
governance models, such as a co-operative of residents
and businesses, or a neighbourhood steering commiee.This helps
to ensure that the project contributes to theneighbourhood
prosperity.
Initiating new projects: neighbourhood organizations
can use a number of financial tools, such as sellingoptions on
future credits.
Stimulating a green economy: neighbourhood offsetprojects
increase investment in innovative and/ oremerging green
technologies or services, enable
businesses to explore ways to allow their customers toreduce the
environmental impact of their purchases,and allow consumers to show
support for greenerproducts or services.
Carbon Offseing creates credits for greenhouse gasreductions
achieved by one party that can be purchasedand used to compensate
(offset) the emissions ofanother party. Carbon offsets are
typically measuredin tonnes of CO2-equivalents (or CO2e) and are
boughtand sold through a number of international brokers,online
retailers and trading platforms.
Neighbourhood Offseing Programs are similar totraditional carbon
offseing schemes, but are smaller
in scale and typically have a greater involvement at
thecommunity level.
If an individual or organisation or neighbourhoodproduces carbon
offsets and then sells them externally,they cannot claim to be
carbon neutral (for the yearscovered by the offset). However, since
carbon offsetscan be sold over multiple years, offsets could be
sold tohelp finance a technology for a given number of years(e.g.
years 1-5) after which the neighbourhood groupthat built the
project could claim neutrality (e.g. foryears 6+). Used in such a
manner, carbon offsets could
enable the transition to carbon neutrality.
How do they work?
Benefits of Neighbourhood Offsetting
Neighbourhood Offsetting Program Background Paper
Neighbourhood Offsetting allows
individuals and/or organizations topurchase credits from
neighbourhood scale
environmental projects in order to reducetheir own impact and
transition to carbonneutrality. Neighbrouhood offsettingprojects
could include tree planting, small
scale renewable energy installations,improved forest management,
low tillagriculture, cogeneration (electricity and
heat generation), or energy effi ciencyupgrades and can be used
to offset anindividuals entire carbon footprint or to just
focus on a specific activity (e.g., air travel).
O FFSETTERS
investment:
funds a high
project
project
reducesCO2e
emissions
CO2ereductions
become
retirescarbon
credits onyour behalf
Your CO2eemissions
Net zeroCO2
emissions
$
$
Offsetters www.offsetters.ca
Carbon Offsetting
Prepared by Grant Lowe, Jonathan Yazer, Karen Nasmith, Travis
Allan for Project Neutrals Neighbourhood Summit, Evergreen
Brickworks, June 9th.
7/31/2019 Background Paper: Neighbourhood Offset Program
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Individuals and businesses can purchase certifiedoffset credits
from projects to offset their emissions. Thefollowing are two
examples of how offsets can fundlocal projects:
The City of Guelphs Eastview landfill has a gascollection system
that sends collected methane gas toan on-site electrical generation
facility that is rated forapproximately 2.75 MW of electricity at
peak. Methane,a greenhouse gas, is destroyed by being consumed in
theelectrical generators engines. The City of Guelph is thefirst
known municipality in Ontario to have sold carbonoffset credits to
non- governmental entities. Their citycouncil has directed that the
proceeds generated by the
transaction with the Greening Canada Fund be used tomaintain and
operate the existing landfill gas collectionsystem purchasing
credits from this project helps tokeep it going in the future.
www.greenpoweraction.ca
The Toronto District School Board (TDSB) and theGreen Power
Actions Greening Canada Fund (GCF)signed an agreement in 2010 under
which TDSB will
begin selling carbon credits to GCF credits createdfrom results
of the Boards efforts to make significantreductions to its
greenhouse gas emissions. Over fiveyears, this innovative
transaction one of the first of its
kind is expected to generate more than $1.7 millionfor TDSB.
Since 2000, TDSB has invested more than $38million in energy
reduction projects that have producedan 18% reduction in greenhouse
gas emissions. Thoseemission reductions have been measured and
verifiedand will be sold through GCF, with the revenuereinvested in
the Boards Environmental Legacy FundReserve to support future
energy reduction projects.greenpoweraction.com
Teng Hoi Conservation Organization is a non-profitorganization
that develops practical and participativeenvironmental programmes
with a strong emphasison education and measurable results. Teng
Hoi
has established a Community Offseing programfor schools, with
each school agreeing to a cap onemissions generated by electricity
consumption.Educational activities are then introduced that
promoteenergy saving. Emissions savings are converted intoCommunity
Carbon Credits. Individuals or companieswishing to offset their own
carbon emissions canthen buy Community Carbon Credits. The
offseingmoney saves carbon and helps promote
environmentaleducation. communityoffseing.org
Some of the challenges of establishing a neighbourhoodoffseing
program include:
Determining a viable and appropriate offseingproject:
availability of land and support from localresidents and businesses
are critical components of asuccessful neighbourhood offseing
program.
Certification costs: offsets must be certified by a thirdparty
to ensure consistency within the carbon market,avoid double
counting (cannot sell the same offset tomultiple clients) and
ensure additionality (creditsmust result from activities that are
in addition to otheractivities that would have been done anyways).
Thisprocess can be very expensive. Costs include
projectdevelopment, monitoring, verification and sale
ofcredits.
Discouraging individual change: some critics areconcerned that
offseing is counterproductive becauseit allows people to pay others
to reduce greenhouse gasemissions on their behalf rather than
reducing theirown emissions. However, proponents argue
offseingprojects can allow us to decrease our global greenhousegas
emissions in the long run and can potentiallymitigate the impacts
of climate change.
The Muskoka Envirocredits program is delivered byan alliance of
non-profit organizations. Individualsand businesses can purchase
envirocredits to promotewatershed health while offseing carbon
emissionsthrough investment in watershed health initiatives(which
includes the planting and tending of trees in theFrench-Severn
Forest and acquisition and protectionof forested areas and
wetlands). These credits are notcarbon offsets and do not transfer
the right to claimcarbon neutrality or a reduction in greenhouse
gas
emissions to purchasers. muskokaheritage.org
Offsetting at the Neighbourhood Level
Neighbourhood Offsetting Program Background Paper
Challenges
Riverdale (left and center) and The Junction (right) are Project
Neutrals pilot neighbourhoods
Prepared by Grant Lowe, Jonathan Yazer, Karen Nasmith, Travis
Allan for Project Neutrals Neighbourhood Summit, Evergreen
Brickworks, June 9th.
