Navigating the Carbon Maze

1.0 Carbon in the "-Sphere"

Atmosphere: The atmosphere is a substantial reservoir of carbon, primarily present as greenhouse gases, carbon dioxide (CO2), and methane (CH4). These gases are instrumental in modulating our planet's climate by retaining heat within the Earth's atmosphere. During photosynthesis, plants assimilate atmospheric CO2, transforming it into organic compounds. Conversely, CO2 is returned to the atmosphere via respiration from animals and plants. Anthropogenic activities, notably burning fossil fuels and deforestation, augment the atmospheric concentration of CO2, thus intensifying global warming.

Pedosphere (Soil): The pedosphere is the largest significant carbon repository, holding carbon largely in the forms of organic matter (composed of decomposing plant and animal material) and inorganic carbonates. Microorganisms in the soil play a crucial role in the carbon cycle by decomposing organic matter, a process that liberates CO2 back into the atmosphere. Additionally, the formation and weathering of carbonates contribute to the cycling of carbon between the pedosphere, atmosphere, and hydrosphere.

Geosphere (Earth's Crust): The geosphere contains carbon mainly as carbonates, including limestone and dolomite, and as fossil fuels such as coal, oil, and natural gas. These represent long-term carbon storage. The weathering of carbonate rocks gradually releases carbon into the hydrosphere and atmosphere. Furthermore, anthropogenic activities involving the extraction and combustion of fossil fuels contribute significantly to the atmospheric concentration of CO2.

Hydrosphere (Water Bodies): The hydrosphere, comprising the world's oceans and other bodies of water, is another crucial reservoir of carbon. It primarily harbors carbon as dissolved CO2 and carbonates. Oceans play an indispensable role in maintaining the Earth's climate by absorbing, storing, and later releasing CO2. Marine organisms absorb CO2 to construct their calcium carbonate shells, which, over geological time, can aggregate into sedimentary rock.

Biosphere (Living Organisms): All living organisms contain carbon, constituting various organic molecules like proteins, carbohydrates, and fats. Photosynthetic plants and microbes absorb CO2 from the atmosphere, converting it into organic matter. Animals obtain their carbon quota by consuming plants or other animals. Upon death and decomposition of organisms, their carbon is cycled back into the atmosphere, hydrosphere, and pedosphere. Some of this carbon, over geological timescales, may transition into fossil fuels.

2.0 Major Contributors to Global Greenhouse Gas Emissions (average):

Electricity and Heat Production (~25% of global emissions): This sector's emissions predominantly stem from the combustion of coal, oil, and gas for electricity and heat generation. However, this percentage can fluctuate depending on the data source and the specific country or region in focus.

Transportation (~14% of global emissions): Greenhouse gas emissions from transportation are mainly a result of burning fossil fuel for cars, trucks, ships, trains, and planes. Over 90% of the fuel used for transportation is petroleum-based, encompassing gasoline and diesel.

Industry (~21% of global emissions): Emissions from the industrial sector primarily arise from burning fossil fuels for energy and from chemical reactions necessary for producing goods from raw materials. These raw materials range from iron, steel, and cement to chemicals and other goods.

Agriculture, Forestry, and Other Land Use (~24% of global emissions): Greenhouse gas emissions from this sector mostly originate from agriculture (crop and livestock production), deforestation, and land degradation.

As we grapple with climate change, carbon measurement, and monitoring are becoming increasingly vital from a policy perspective. To understand these concepts better, let's understand a few commonly used terms:

3.0 Terminologies in Carbon Measurement and Management

Carbon Footprint: This term delineates the aggregate amount of greenhouse gas (GHG) emissions, both direct and indirect, attributable to an individual, entity, process, or product. These emissions are quantified as a carbon dioxide equivalent (CO2e). For instance, if an individual contributes 2.5 tons of CO2 per annum due to vehicular usage and an additional 3 tons per annum due to household electricity utilization, their carbon footprint is computed as the total of these emissions, i.e., 5.5 tons of CO2 annually.

Carbon Intensity: This metric provides the volume of CO2 emissions generated per unit of a particular variable, such as output, revenue, or energy consumed. It often serves as a measure of environmental impact, with the carbon intensity value being inversely proportional to efficiency. For example, A coal-fired power plant emits 2,000 tons of CO2 in a year and generates 1,000 MWh of electricity in that time. Its carbon intensity would be 2000 tons / 1000 MWh = 2 tons of CO2 per MWh.

Lifecycle Assessment (LCA): This is a comprehensive examination of the environmental repercussions of a product or service across its entire lifecycle, spanning raw material extraction, manufacturing, distribution, usage, and final disposal. The LCA embodies measurements of carbon emissions at each lifecycle stage, thereby offering a holistic view of a product or service's environmental footprint. Suppose manufacturing a product results in 1 ton of CO2 emissions, transporting it results in 0.2 tons, and disposing of it results in 0.1 tons. The total lifecycle emissions would be 1 ton + 0.2 tons + 0.1 tons = 1.3 tons of CO2.

Carbon Offset: This concept signifies a compensatory measure aimed at reducing emissions of carbon dioxide or other greenhouse gases in one place to counterbalance emissions made elsewhere. For instance, an organization may invest in afforestation initiatives, which sequester carbon, to offset the emissions engendered by its industrial operations. For example, If a company emits 10,000 tons of CO2 in a year but invests in a reforestation project that is expected to remove 2,000 tons of CO2 from the atmosphere over its lifetime, the company's net emissions after offsets would be 10,000 tons - 2,000 tons = 8,000 tons of CO2.

Embodied Carbon: This refers to the total quantum of GHGs discharged during the extraction, manufacturing, and transportation of a material or product, up to the point of its installation or utilization. For example, if the production of a specific building material contributes 3 tons of CO2 emissions and its transport to the site results in an additional ton of CO2, the embodied carbon of that material is 4 tons of CO2.

Scope 1, 2, and 3 Emissions: This is a categorization used in GHG Protocol Corporate Standard for a company's GHG emissions. Scope 1 covers direct emissions from owned or controlled sources. Scope 2 covers indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the reporting company. Scope 3 includes all other indirect emissions that occur in a company's value chain. Suppose a company's direct emissions (scope 1) are 5,000 tons of CO2, its indirect emissions from purchased energy (scope 2) are 3,000 tons, and its other indirect emissions from its value chain (scope 3) are 2,000 tons. Its total emissions would be 5,000 tons + 3,000 tons + 2,000 tons = 10,000 tons of CO2.

4.0 Understanding of Carbon Credit and Carbon Market Terminologies:

Carbon Credits: Each carbon credit symbolizes the license to emit one metric tonne of CO2 or the equivalent mass of a different greenhouse gas, quantified as carbon dioxide equivalent (CO2e). Carbon credits constitute a core element of international efforts to curb the surge in GHG concentrations in the Earth's atmosphere.

Carbon Markets: These are systems through which countries can trade carbon credits to meet their obligations under international agreements, such as the Paris Agreement. This market-based approach encourages emissions reductions where they are most cost-effective.

Cap and Trade: This is a system that sets a maximum limit or "cap" on emissions. Companies or countries are issued emission permits and are required to hold an equivalent number of allowances (or credits) that represent the right to emit a specific amount. Companies that need to increase their emission allowance must buy credits from those who pollute less.

Carbon Offsetting: This is a reduction in emissions of carbon dioxide or other greenhouse gases made to compensate for emissions made elsewhere. For example, a company might offset its emissions by investing in a project that reduces emissions, such as a renewable energy or reforestation project.

Carbon Tax: This is a tax on the carbon content of fossil fuels. The aim of a carbon tax is to reduce emissions of CO2 and other greenhouse gases by making it more expensive to emit them.

REDD+: Standing for "Reducing Emissions from Deforestation and Forest Degradation", REDD+ is a mechanism developed by Parties to the United Nations Framework Convention on Climate Change (UNFCCC). It incentivizes developing countries to reduce emissions from deforestation and forest degradation through the financial value placed on forested land.

Verified Emission Reductions (VERs): These are carbon credits that are traded on the voluntary market. VERs are often bought by companies or individuals who wish to offset their own carbon footprints. These credits are certified by third-party organizations.

Certified Emission Reductions (CERs): CERs are a type of emissions unit (or carbon credits) issued by the Clean Development Mechanism (CDM) of the United Nations Framework Convention on Climate Change (UNFCCC). One CER corresponds to one tonne of carbon dioxide reduction or its equivalent in other greenhouse gases that have been prevented from being released into the atmosphere.

5.0 Glossary of Carbon Offsetting Related Terms:

Additionality: Additionality in carbon offsetting implies that a project reduces CO2 emissions beyond what would have happened in the absence of the project. Let's consider an agricultural project aiming to switch from traditional to no-till farming. The reduced tilling can decrease carbon dioxide emissions by preserving soil organic matter and improving carbon storage in the soil. The project achieves additionality if the emissions after implementing the no-till practices are lower than what they would have been under the conventional tilling system.

Leakage: This term refers to the inadvertent translocation of emissions from one site to another. If an agricultural project conserves a specific plot of farmland by implementing sustainable practices that reduce carbon emissions but simultaneously pushes farming activities to another plot where these sustainable practices aren't used, leakage has occurred. The emissions reduction achieved at the conserved plot is offset by increased emissions at the new plot.

Permanence: Permanence refers to the longevity of a carbon offset. For a carbon offset to truly counteract an emission, the sequestration needs to be permanent or at least long-lasting. An agroforestry project where farmers plant trees on their land to sequester carbon achieves permanence if those trees are maintained and not cut down for many years, allowing the carbon stored in them to remain locked away. If the trees are eventually cut down, the stored carbon would be released back into the atmosphere, disrupting the permanence of the carbon offset.

Baseline: In carbon offsetting, the baseline is a measure of the carbon emissions, removal, or storage that would occur in the absence of the proposed project. The baseline is used to determine the additionality of a project. In the context of an agricultural project, the baseline might be the emissions from a rice paddy field under traditional farming practices. If a project proposes a new method of rice cultivation that reduces methane emissions, the baseline (emissions under traditional practices) is used to determine how much additional reduction in emissions the project achieves.

Verification: This is the process of having a third-party organization confirm the carbon emission reductions or removals of a project. Verification ensures that the project is indeed reducing or removing the amount of carbon it claims to be. Suppose a dairy farming project reduces methane emissions by altering the diet of cows. A third-party organization would verify the project by checking the new diet, the number of cows, the reduction in methane emissions, and other factors to confirm the project is indeed reducing emissions as claimed.

Carbon Credit: A carbon credit represents the right to emit one tonne of CO2 or the mass of another greenhouse gas with a CO2 equivalent (tCO2e). In the context of carbon offsetting, a project generates carbon credits by reducing or removing emissions. If an agricultural project such as a soil carbon sequestration project successfully reduces or removes a specific amount of carbon dioxide or its equivalent, it can generate carbon credits. These credits can be sold on carbon markets, providing farmers with an additional source of income.

Validation: Validation is the process of having a proposed project's design reviewed and confirmed by an independent third-party. It includes checking project's methodology, baseline and monitoring plans, additionality assessment, etc. Before implementing a project to reduce nitrous oxide emissions by optimizing the use of nitrogen fertilizers in crop production, a third-party would review the project's design. This includes confirming the methodology for reducing fertilizer use, plans for monitoring emissions, and the projected emissions reduction. The process ensures that the project is viable and effective.