Carbon offsetting is the act of reducing the amount of carbon emissions elswhere to 'off-set' the increased carbon emissions resulting from the activities of an individual or organisation. In contrast to emissions trading carbon offsetting can be informal, voluntary and varied.

As the pressure from government increases to reduce carbon emissions from developing and existing housing stock and construction companies are becoming more socialy aware and responsible developers are looking for more ways in which they can immediately
reduce their carbon footprint and at a reasonable cost. 

There are many organisations who voluntarily contribute to their own offset funds. One example can be found at: Osborne.co.uk In this case Osborne calculate the amount of carbon that results from the miles they drive and the energy used in running their offices and convert this to a cash fund known as the Osborne Carbon Offset Fund. They are actively seeking ways in which the fund can be invested to reduce their carbon footprint.

This concept can be taken further for construction companies. There is no need to stop at offsetting the carbon produced in the general running of a business. Contractors can offset the carbon produced by the buildings that they are involved in building. 

In the context of the planning system, carbon offset funds can be used as a policy instrument. Local Authorities can offer developers the option to make a one off contribution to a fund which is used to save carbon off-site in line with the annual carbon emissions given off by each new development. In this way Local Authorities can provide developers, who cannot yet produce low carbon homes, a way to reduce their carbon impact immediately, helping to meet government targets early.

SECBE are currently completing a feasibility study on behalf of Eaga who are the UK's largest residential energy efficiency provider, to assess to practical application of this instrument. Click here to find out more.