Carbon Offset Program

Definition of Carbon Offset

Carbon sources are activities or processes that release greenhouse gases, such as fossil fuel combustion, industrial production, and deforestation, contributing to the accumulation of carbon dioxide in the atmosphere. In contrast, carbon sinks—natural systems like forests, soils, and oceans—absorb and store carbon, helping to reduce atmospheric greenhouse gas concentrations. Carbon offset projects leverage these principles by funding activities that either reduce emissions from carbon sources or enhance the capacity of carbon sinks.

According to the Greenhouse Gas Protocol for Project Accounting, a carbon offset project is defined as a specific activity or set of activities designed to achieve one or more of the following outcomes:

• Reduce greenhouse gas (GHG) emissions;
• Increase carbon storage (also known as carbon sequestration);
• Enhance the removal of greenhouse gases from the atmosphere;

These projects are implemented with the explicit goal of generating quantifiable and verifiable reductions in GHG emissions or increases in carbon sequestration, which can then be used to compensate for emissions occurring elsewhere. By enabling organizations and individuals to balance their carbon footprints, carbon offset projects play a vital role in global climate change mitigation.

This concept of balancing emissions with offsets is at the core of carbon neutrality, where the ultimate goal is to ensure that human activities do not result in a net addition of carbon dioxide to the atmosphere.

How does a Carbon Offset Work?

A carbon offset provides a mechanism for individuals and organizations to mitigate their greenhouse gas emissions by investing in projects that either reduce or remove carbon dioxide and other greenhouse gases from the atmosphere. When a carbon offset is purchased, the funds typically support initiatives such as renewable energy projects, reforestation efforts, or methane capture from landfills. Each offset credit generally represents the reduction of one metric ton (2,205 lbs) of carbon dioxide. These credits and the projects that generate them undergo verification by independent third-party certifiers to ensure that the emission reductions are genuine, quantifiable and additional. The resulting verified carbon credits are then made available for purchase on a carbon market. By acquiring these credits, individuals and organizations can effectively neutralize the impact of emissions that cannot be directly reduced within their own operations.

Carbon Offset Market and Types of Projects

There are two primary types of carbon offset markets:

• Compliance Markets: These are regulated markets in which governments establish emissions caps for specific industries. Entities within these sectors are required to adhere to these regulations by either reducing their emissions or acquiring carbon credits.
• Voluntary Markets: These are unregulated markets in which organizations and individuals voluntarily purchase carbon offsets to fulfill self-imposed emissions reduction objectives. Currently, UMD purchases carbon offsets from voluntary markets. 

Carbon offset projects can take various forms, including funding renewable energy initiatives such as wind farms that replace fossil fuel-based energy sources, methane capture from landfills or agricultural operations to prevent its release into the atmosphere, reforestation efforts to absorb carbon dioxide through tree planting or forest conservation, and the adoption of energy efficiency measures that reduce overall energy consumption.

Currently, there are over 170 types of carbon offset projects according to Ecosystem Marketplace.

UMD's Commitment to Carbon Neutrality and the Transition from 2050 to 2025 Goal

UMD has significantly accelerated its goal to achieve carbon neutrality, shifting its target from 2050 to 2025. This ambitious goal was announced by President Darryll J. Pines during his inauguration speech in April 2021, and has positioned UMD as a leader among higher education institutions for campus sustainability efforts. The university's strategy to achieve this accelerated timeline includes several key initiatives such as: 

• Offsetting 100% of measured greenhouse gas emissions from air travel; 

• Transitioning to an all-electric vehicle fleet by 2035; 

• Implementing infrastructure improvements, and 

• Purchasing carbon offsets for remaining emissions starting in 2024. 

This commitment aligns with the university's ongoing efforts, which have already resulted in a 54% reduction in net greenhouse gas emissions between 2005 and 2021, and the achievement of 100% renewable electricity for purchased power since 2020. By dramatically shortening its timeline for carbon neutrality, UMD has positioned itself at the forefront of climate action among U.S. universities.