Technology-based carbon offsets are a method of carbon removal that captures carbon dioxide (CO₂) and methane (CH₄) and repurposes it or stores it long-term. The effectiveness and efficiency of technology-based carbon offsets vary based on the specific type of technology used. So, we had to ask: how effective and efficient are technology-based carbon offsets?

Technology-based carbon offsets are effective as they reduce CO₂ and CH₄ emissions permanently and quickly; however, they can lack additionality. They are efficient as they have low re-emission rates; however, they can be difficult to monitor and verify and do not reduce your own carbon emissions.

Keep reading to find out how efficient and effective technology-based carbon offsets are, how you can offset your carbon footprint with them, what their pros and cons are, how they can mitigate climate change, and what better alternatives to technology-based carbon offsets are. 

The Big Picture of the Effectiveness and Efficiency of Technology-Based Carbon Offsets

Carbon offsets are reductions in carbon emissions that are used to compensate for carbon emissions occurring elsewhere. They are measured in tons of CO₂ equivalents and are bought and sold through international brokers, online retailers, and trading platforms on what is known as the global carbon offset market.

“Carbon offset: a way for a company or person to reduce the level of carbon dioxide for which they are responsible by paying money to a company that works to reduce the total amount produced in the world, for example by planting trees”

Oxford Dictionary

Carbon removal is the process of eliminating carbon from the atmosphere. It is also referred to as negative emissions or carbon drawdown.

“Carbon Removal: the process of removing CO₂ from the atmosphere”

The Intergovernmental Panel on Climate Change

Carbon removal can be split into 2 categories, technological and natural carbon removal. 

• Technological removal: This involves specialized technology which extracts carbon from the atmosphere. 

• Natural removal: Also known as carbon sequestration. Carbon is stored naturally in vegetation (forests), soils, and oceans, also referred to as our carbon sinks. 

Technology-based carbon offsets are those that use specialized technology to extract carbon from the atmosphere so that it can then be repurposed or stored permanently in various reservoirs. 

Carbon offsets that are commonly classified as technology-based carbon offsets include:

• Direct Carbon/Air Capture
• Carbon Mineralization
• Energy Efficiency
• Waste Management 
• Agriculture

Here’s How Effective and Efficient Technology-Based Carbon Offsets Are

In terms of effectiveness, technology-based carbon offsets can permanently and quickly reduce CO₂ emissions, bolster energy security, help transition away from fossil fuels, and reduce CH₄ emissions. However, they can also lack additionality and do not reduce your own carbon emissions, which can lead to greenwashing.

In terms of efficiency, technology-based carbon offsets can have low rates of carbon re-emission; however, they also come with varying levels of cost, can be difficult to monitor and verify, and are not yet scaled to compensate for our global emissions.

How Effective Are Technology-Based Carbon Offset Programs at Reducing CO₂ Emissions

Effectiveness involves completing a task with a desired outcome, typically a successful one. 

“Effective: producing the result that is wanted or intended; producing a successful result”

Oxford Dictionary

Technology-based carbon offsets can permanently and quickly reduce CO₂ emissions, bolster energy security, help transition away from fossil fuels, and reduce CH₄ emissions. However, they can also lack additionality and do not reduce your own carbon emissions, which can lead to greenwashing.

Technology-Based Carbon Offsets Can Reduce Emissions Permanently

Technology-based carbon offsets involving direct carbon/air capture (DCC/DAC) and carbon mineralization permanently remove carbon from the atmosphere.

DCC/DAC offsets are a specific type of carbon offset that permanently remove carbon from the atmosphere. Carbon mineralization offsets are a specific type of carbon offset that store carbon permanently in geological reservoirs. 

For example, Climeworks’ partner Carbfix turns captured CO₂ into stone by dissolving it in water and injecting it underground where it reacts with basalt rock to form solid minerals. This process locks away CO₂ for thousands of years with no long-term monitoring required.

In addition, waste management practices involving landfill gas capture, combustion, or conversion to energy and agricultural processes including CH₄ capture from livestock and the installation of anaerobic methane digesters for manure conversion and on-farm electricity generation also permanently remove emissions from the atmosphere.

When comparing DCC/DAC and carbon mineralization to other methods of carbon removal, like planting trees, we find that they reduce CO₂ emissions more permanently. With nature-based solutions, there is always the risk of droughts, wildfires, tree diseases, and deforestation wiping out newly planted trees and negating permanence and any carbon reduction benefits. 

In short, unlike traditional offsets which simply compensate for your carbon emissions, DCC/DAC and carbon mineralization offsets permanently remove CO₂ from the atmosphere. Storing the carbon underground in rock formations is also a permanent process. 

Technology-Based Carbon Offsets Reduce CO₂ Emissions Quickly

Technology-based carbon offsets involving carbon/air capture (DCC/DAC), carbon mineralization, energy efficiency, and some waste management and agricultural practices can reduce emissions immediately. 

Technology-based carbon offsets generally reduce CO₂ emissions quicker than natural processes:

• Once the DCC/DAC machines start sucking in atmospheric air, they begin reducing CO₂ emissions. 

• Carbon mineralization projects break down silicate rocks into tiny pieces, thereby skipping slow weathering processes. Carbfix can achieve 95% permanent carbon mineralization in under two years. 

• As soon as energy-efficient mechanisms are installed, switched on, or implemented, they begin reducing CO₂ emissions because they use less energy to perform the same task as traditional methods. 

• Waste management processes including landfill gas capture, combustion, or conversion to energy immediately reduce emissions.

• Lastly, CH₄ capture from agriculture livestock and the installation of anaerobic methane digesters for manure conversion and on-farm electricity generation reduces emissions once the technology is activated.

In short, technology-based carbon offsets can reduce emissions quicker than some nature-based solutions. 

Technology-Based Carbon Offsets Bolster Energy Security and Help Transition Away From Fossil Fuels

Technology-based carbon offsets involving energy efficiency can help reduce reliance on fossil fuels, leading to increased energy security and energy independence. 

Overall, energy-efficient mechanisms use less energy than traditional mechanisms to perform the same task. This reduces overall energy demand, which in turn reduces reliance on imports of biomass fuels on fossil fuels (e.g., coal, oil, and natural gas). 

Being able to produce your own energy without relying on other entities increases energy security, which is reliable, affordable access to fuels and energy sources. And increased energy security fosters energy independence, which can aid in the transition away from fossil fuels and towards lower carbon options.

Energy-efficient practices also promote energy decentralization, where power is generated at or near locations where it will be used. This decreases the need to transport energy and generates environmental benefits associated with a lower carbon footprint. 

For example, clean cookstoves are a decentralized, energy-efficiency solution whereby cookstoves are distributed throughout communities. Rather than depending on power from a central location, individual families can utilize their own power in their homes.

In short, energy-efficiency offsets bolster energy security and can lead to energy independence.

Technology-Based Carbon Offsets Reduce Methane (CH₄) Emissions

Technology-based carbon offsets involving agriculture and waste management can reduce methane (CH₄) emissions. CH₄ is 25 times more potent than CO₂ at trapping heat in our atmosphere, which exacerbates global warming. 

Agriculture is the predominant source of methane (CH₄) emissions, with livestock alone accounting for approximately 32% of human-caused CH₄ emissions. CH₄ capture from livestock and the installation of anaerobic methane digesters for manure conversion and on-farm electricity generation are common agricultural offset projects that reduce CH₄.

One of the most common waste management carbon offset projects involves landfill gas, specifically gas capture, combustion, or conversion to energy. CO₂ and CH₄ comprise 90-98% of landfill gasses, which are produced when bacteria break down organic waste (e.g., food, paper, wood, sewage sludge, and yard waste). Waste management offsets involving CH₄ gas capture, combustion, or conversion-to-energy prevent CH₄ from entering our atmosphere. 

Both types of offsets prevent CH₄ from entering our atmosphere, and because CH₄ is more potent than CO₂, removing it is a quick way to slow the rate of global warming, at least in the short term.

In short, waste management and agricultural offsets can reduce CH₄ emissions via CH₄ capture, combustion, or conversion to energy projects.

Technology-Based Carbon Offsets Can Lack Additionality

Technology-based offsets involving energy efficiency and waste management often lack additionality because many projects receiving revenue now would have been built regardless.

To be beneficial, energy efficiency and waste management offsets must be additional. This means the carbon emissions reductions would not have occurred without intervention.

However, energy efficiency and waste management offsets are often not additional because many projects receiving revenue now would have been built regardless. 

One of the main pros of energy efficiency is lower energy costs, which can drive market expansion. For example, since 2020, global markets have contributed approximately $1 trillion towards energy efficiency-related practices involving buildings, transportation, infrastructure, and electric vehicles. The large demand for energy-efficient practices, in general, means that the infrastructure could have been built independently of energy-efficiency carbon offsets. 

The global waste management market is expected to grow to $2.5 billion by 2030 due to the increasing rate at which and the amount of waste we generate annually. As the market grows, there has been a push for waste management projects involving food rescue, landfill gas capture, and recycling. The large demand for waste management in general means that the infrastructure could have been built independently of waste management carbon offsets.

In short, additionality is not guaranteed with energy-efficiency offsets because the large demand means infrastructure could have been built independently of offsets.

Technology-Based Carbon Offsets Do Not Reduce Your Own Carbon Emissions

One of the main limitations of carbon offsetting, in general, is that purchasing a carbon offset does not directly reduce your carbon footprint. It only makes others reduce their carbon footprint to compensate for your carbon footprint. 

If emissions are only offset and not reduced from the source, this could lead to greenwashing, when the consumer is deceived into thinking they are offsetting their emissions but in reality, they are not. Companies accused of greenwashing either invest in non-verified credits, do not prioritize in-house emissions reductions, or double-count carbon credits. Or sometimes, all of the above.

In short, because technology-based carbon offsets do not reduce your own emissions, they could lead to greenwashing.

How Efficient Are Technology-Based Carbon Offset Programs at Mitigating Climate Change

Efficiency involves performing a task while using the least amount of resources and producing the least amount of waste possible.

“Efficient: working in a way that does not waste a resource (= something valuable such as fuel, water, or money)”

Cambridge Dictionary

Technology-based carbon offsets can have low rates of carbon re-emission; however they also come with varying levels of cost, can be difficult to monitor and verify, and are not yet scaled to compensate for our global emissions.

Technology-Based Carbon Offsets Have Low Rates of Carbon Re-Emission 

Technology-based carbon offsets involving carbon/air capture (DCC/DAC) and carbon mineralization are permanent solutions with low rates of CO₂ re-emission.

DCC plants are most effective in locations where there is excess renewable energy available along with ample natural storage options for the captured carbon. And although DCC facilities require energy to operate, they can re-emit only small amounts of CO₂ if powered by low-carbon energy sources (i.e., solar or wind power).

For example, a study published by the RWTH Aachen University on Climeworks’ Orca DCC plant found that this plant re-emits less than 10% of the CO₂ they capture when the plant is operated by low-carbon electricity. For every 100 tons of CO₂ captured from the air, 90 tons are permanently removed, and only up to 10 tons are re-emitted

In addition, because carbon mineralization is a permanent process, rates of carbon re-emission are very low. For example, greenSand Olivine rocks permanently store carbon and will only release that carbon back into the atmosphere if the temperature exceeds 1,600 degrees. In addition, even if the rocks are broken, the carbon will remain trapped inside. 

In short, DCC/DAC and carbon mineralization processes permanently remove CO₂ from the atmosphere and store it for long periods of time with low rates of carbon re-emission.

Technology-Based Carbon Offsets Have Varying Levels of Cost 

Technology-based carbon offsets involving energy efficiency, waste management, and agriculture are some of the most cost-effective methods of carbon emission reduction. 

Coupling energy efficiency, waste management, and agricultural practices with carbon offsets could help finance the arduous task of reducing atmospheric CO₂ levels. Especially since these offsets are typically more cost-effective than other categories of offsets. 

• Energy-efficiency offsets from leading providers (e.g., Carbonfund, Ecologi, myclimate) cost less than $40 per ton of CO₂ offset.
• Waste management offsets from leading providers (e.g., GreenTech, Carbonfund, and Terrapass) cost less than $40 per ton of CO₂ offset.
• Agricultural offsets from leading providers (e.g., Vi Agroforestry, One Tree Planted, and Terrapass) cost less than $40 per ton of CO₂ offset.

On the other hand, technology-based offsets involving carbon/air capture (DCC/DAC) and carbon mineralization are some of the most expensive methods of carbon removal. 

DCC/DAC offsets currency range anywhere from $250-$1200 per ton, the highest out of all carbon removal methods. Close behind are carbon mineralization offsets, which currently range anywhere from $82 – $1,200 per ton of CO₂. Both are dependent on the type of technology, the type of energy source, and the scale of the operation.

In short, the cost of technology-based offsets depends on the specific type of offset, with costs ranging anywhere from less than $40 to $1,200 per ton of CO₂.

Technology-Based Carbon Offsets Can Be Difficult to Monitor and Verify

Technology-based carbon offsets involving energy efficiency, waste management, and agriculture can be difficult to monitor and verify. 

Energy-efficient practices promote energy decentralization, where power is generated at or near locations where it will be used. And although this decreases the need to transport energy and generates environmental benefits, it can also make project standardization and monitoring difficult.

By nature, centralized solutions are easier to keep track of. But there are different standards for different types of energy-efficiency practices. Appliances, lighting, buildings, cooking, and fuels are held to different standards, making it difficult to standardize energy efficiency as one singular entity. 

Waste management is a broad term that can include landfill gas capture/combustion, landfill gas to renewable energy, biodigesters, biogas, recycling, food rescue, and composting. Each of which can have its own protocols and standards to be followed.

Agricultural emissions themselves are also difficult to measure and manage because there are hundreds of millions of farmers around the world, most of which are farming small plots of land. In order to exact change on a global scale, we would have to incorporate agricultural offset practices such as biochar, agroforestry, and methane capture on a massive scale and for hundreds of years into the future. This would be difficult to do both socially and economically.

In short, the fact that there are multiple types of energy efficiency, waste management, and agricultural carbon offsets makes them difficult to standardize, verify, and monitor. 

Technology-Based Carbon Offsets Are Not Yet Scaled to Compensate For Our Global Emissions

Technology-based carbon offsets are not yet at a scale where they can compensate for our global carbon emissions. 

Carbon offsets in general are currently not sufficient to compensate for all of our carbon emissions. We emit more than 37 billion tons of carbon annually, but carbon offset credits for only ~1 billion tons of CO₂ have been listed for sale on the voluntary market. The number of sellers also exceeds the number of buyers by about 600-700 million tons. 

Because technology-based offsets are only a small subsection of the larger carbon offset market, they are also inadequate in terms of offsetting our global emissions.

There are relatively few companies engaged in DCC/DAC practices and the technology is still expensive to implement; therefore, the amount of carbon it can remove is limited. But the recent push for more DCC/DAC technology means that its capacity is increasing. Climeworks began construction in 2022 for its newest plant, Mammoth, which will have an annual carbon capture capacity of 36,000 tons, nine times that of its current plant Orca.

There are also relatively few companies engaged in carbon mineralization on a commercial level, and processes, standards, and technologies still need to be developed to ensure proper monitoring, verification, and reporting of carbon sequestration via mineralization. Experts estimate that carbon mineralization could be scaled up to capture 2-4 billion tons of CO₂ per year by 2050. 

Experts also predict the world’s population will increase by 2 billion people in the next 30 years. More people means more mouths to feed and more waste generated; therefore, GHG emissions from agriculture and waste will continue to increase. We already emit approximately 570 million tons of CH₄ and generate over 2 billion tons of waste. 

In short, technology-based carbon offsets involving DCC/DAC, carbon mineralization, energy efficiency, and waste management are not yet scaled to keep pace with our global carbon emissions. 

How Could You Offset Your Own Carbon Footprint With Technology-Based Carbon Offsets

The market for carbon offsets was small in the year 2000, but by 2010 it had already grown to represent nearly $10 billion worldwide. The voluntary carbon offset market (VCM) is where everyday consumers can purchase carbon offsets to offset their carbon emissions. 

The Ecosystem Marketplace predicts the VCM can grow to $50B by the year 2050. And because technology-based carbon offsets are effective and efficient at reducing carbon emissions, they are predicted to make up an increasingly larger share of this market.

What Are The 6 Pros and 5 Cons of Technology-Based Carbon Offsets

Technology-based carbon offsets can cost-effectively reduce CO₂ and CH₄ emissions quickly while storing carbon for long periods of time. They also promote energy decentralization, bolster energy security, help transition away from fossil fuels, and allow us to reduce carbon emissions in ways we wouldn’t be able to accomplish individually.

Technology-based carbon offsets can lack additionality, are not yet scaled to compensate for our global emissions, can be expensive, and can be difficult to monitor and verify. They also do not reduce your own carbon emissions, which could lead to greenwashing.

What Are the 6 Pros of Technology-Based Carbon Offsets

Technology-based carbon offsets have various pros that make them effective at reducing carbon emissions.

What Are the 5 Cons of Technology-Based Carbon Offsets

Understanding the drawbacks of technology-based carbon offsets is important in order to effectively mitigate climate change.

How Can Technology-Based Carbon Offsets Help Mitigate Climate Change

Climate change is a severe and long-term consequence of fossil fuel combustion. Technology-based offsets can help mitigate climate change because they eliminate fossil-fuel-derived carbon from our atmosphere which, if left untreated, can remain there for tens of thousands of years and exacerbate the negative effects of climate change.

How is Climate Change Defined

Climate change is arguably the most severe, long-term global impact of fossil fuel combustion. Every year, approximately 33 billion tons (bt) of CO₂ are emitted from burning fossil fuels. The carbon found in fossil fuels reacts with oxygen in the air to produce CO₂. 

“Climate change: changes in the earth’s weather, including changes in temperature, wind patterns and rainfall, especially the increase in the temperature of the earth’s atmosphere that is caused by the increase of particular gasses, especially carbon dioxide.”

Oxford Dictionary

Atmospheric CO₂ fuels climate change, which results in global warming. When CO₂ and other air pollutants absorb sunlight and solar radiation in the atmosphere, it traps the heat and acts as an insulator for the planet. Since the Industrial Revolution, Earth’s temperature has risen a little more than 1 degree Celsius (C), or 2 degrees Fahrenheit (F). Between 1880-1980 the global temperature rose by 0.07C every 10 years. This rate has more than doubled since 1981, with a current global annual temperature rise of 0.18C, or 0.32F, for every 10 years. 

How Do Carbon Offsets Generally Help Mitigate Climate Change

Levels of carbon in our atmosphere that cause climate change have increased as a result of human emissions since the beginning of the Industrial Revolution in 1750. The global average concentration of carbon dioxide in the atmosphere today registers at over 400 parts per million. Carbon offsets can help prevent these levels from increasing even more.

When you hear the words “carbon offset”, think about the term “compensation”. Essentially, carbon offsets are reductions in GHG emissions that are used to compensate for emissions occurring elsewhere. 

Carbon offsets that meet key criteria and verified project standards, are additional and permanent, and are part of projects that are carried out until the end of their lifespan have the best chance of reducing carbon emissions and therefore reducing climate change. 

As outlined in the 2015 Paris Climate Agreement, we must cut current greenhouse gas (GHG) emissions by 50% by 2030 and reach net zero by 2050. Technology-based offsets are important to meet these targets because it eliminates carbon, which when emitted, can remain in our atmosphere for tens of thousands of years.

How Do Technology-Based Carbon Offsets Specifically Help Mitigate Climate Change

Direct carbon/air capture and carbon mineralization offsets specifically help mitigate climate change because these methods permanently lock away CO₂ for thousands of years with little to no carbon re-emission.

Waste management offsets involving landfill gas capture/combustion, landfill gas to renewable energy, biodigesters, biogas, and composting specifically help mitigate climate change because they capture emissions from waste, turn it into renewable energy, and reduce the total amount of waste. 

Energy-efficiency offsets involving clean cookstoves, water filtration programs, and co-generation facilities specifically help mitigate climate change by reducing CO₂ emissions from direct fossil fuel combustion and from indirect electricity generation. By using energy-efficient appliances and methodologies, we reduce the amount of CO₂ entering our atmosphere. 

Agricultural offsets including CH₄ capture can specifically help mitigate climate change because they reduce CO₂ and CH₄ emissions in one of the biggest industries worldwide.

What Are Better Alternatives to Technology-Based Carbon Offsets

If used correctly, technology-based carbon offsets can provide environmental, economic, and social benefits beyond reducing carbon emissions. They have the potential to instigate meaningful environmental change and begin to reverse some of the effects of climate change. 

However, we can’t let this method be a guilt-free way to reduce carbon emissions. Technology-based carbon offsets must be used in conjunction with direct carbon reduction measures to reduce GHG emissions long term. 

These reduction measures don’t have to involve drastic changes either. Actions that may seem small can have a big impact because those small changes add up! You can reduce your carbon footprint in three main areas of your life: household, travel, and lifestyle. 

Reduce your household carbon footprint:

• Wash with cold water: Washing clothes in cold water could reduce carbon emissions by up to 11 million tons. Approximately 90% of the energy is used to heat the water, so switching to cold saves also saves energy.

• Replace incandescent bulbs with fluorescent bulbs: Fluorescent bulbs use 75% less energy than incandescent ones, saving energy and thus reducing electricity demand and GHG emissions.

Reduce your travel carbon footprint:

• Fly less: Aviation accounts for around 1.9% of global carbon emissions and 2.5% of CO₂. Air crafts run on jet gasoline, which is converted to CO₂ when burned.

• Walk or bike when possible: The most efficient ways of traveling are walking, bicycling, or taking the train. Using a bike instead of a car can reduce carbon emissions by 75%. These forms of transportation also provide lower levels of air pollution.

Reduce your lifestyle carbon footprint:

• Switch to renewable energy sources: The six most common types of renewable energy are solar, wind, hydro, tidal, geothermal, and biomass energy. They are a substitute for fossil fuels that can reduce the effects of global warming by limiting global carbon emissions and other pollutants.

• Recycle: Recycling uses less energy and deposits less waste in landfills. Less manufacturing and transportation energy costs means fewer carbon emissions generated. Less waste in landfills means less CH₄ is generated.
• Switch from single-use to sustainable products: Reusing products avoids resource extraction, reduces energy use, reduces waste generation, and can prevent littering.

• Eat less meat and dairy: Meat and dairy account for 14.5% of global GHG emissions, with beef and lamb being the most carbon-intensive. Globally, we consume much more meat than is considered sustainable, and switching to a vegan or vegetarian diet could reduce emissions. 

• Take shorter showers: Approximately 1.2 trillion gallons of water are used each year in the United States just for showering purposes, and showering takes up about 17% of residential water usage. The amount of water consumed and the energy cost of that consumption are directly related. The less water we use the less energy we use. And the less energy we use, the less of a negative impact we have on the environment.

Because technology-based carbon offsets are an indirect way and not a direct way of reducing emissions, they alone will not be enough to reduce global carbon emissions significantly. Direct measures of emission reductions, such as reducing individual energy use and consumption, are better alternatives to these offsets. 

Final Thoughts

Technology-based carbon offsets face varying levels of effectiveness and efficiency depending on the type of technology used.

Direct carbon/air capture (DCC/DAC) and carbon mineralization offsets permanently remove CO₂ quickly with low rates of carbon re-emission; however, they are also expensive and do not continue reducing CO₂ emissions after project lifespans.

Energy efficiency, waste management, and agricultural carbon offsets are cost-effective, bolster energy security, and reduce CH₄ emissions; however, they may lack additionality and can be difficult to monitor and verify.

Carbon offsets can instigate meaningful change, but they should not be seen as the only solution to climate change. When used in conjunction with direct CO₂ reduction measures, carbon offsetting can be much more effective. We should reduce our own carbon footprint as much as possible first, and only then choose the most effective technology-based carbon offsets.

Stay impactful,

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