What is carbon offsetting?
Carbon offsetting involves calculating the amount of carbon emissions generated by a particular activity (such as shipping your SoulKu order) and then purchasing an instrument that pays for avoiding or sequestering the same amount of carbon elsewhere in the environment.
Because the earth is one giant carbon sink, removing an equivalent amount of emissions elsewhere in the environment has the same net impact as if your emissions didn't occur. Buying an instrument that reduces or eliminates greenhouse gases also creates a market that spurs the creation of additional carbon-removal projects.
What instruments does Cloverly use to offset carbon emissions?
The instruments that Cloverly uses fall into 2 main categories: carbon offsets and Renewable Energy Credits (RECs).
What is a carbon offset?
A carbon offset is an instrument representing the reduction, avoidance, or sequestration of 1 metric ton (2,205 pounds) of carbon emissions. It's called an offset because it's used to compensate for an equal amount of carbon emissions elsewhere. Carbon offset projects are verified by third parties to make sure that they indeed reduce, avoid, or sequester the amount of carbon that they claim.
For a current list of the offset and Renewable Energy Credit projects in Cloverly's portfolio and an interactive map showing their locations, go to HERE.
What is a Renewable Energy Credit (REC)? Is it different from a carbon offset?
Renewable Energy Credits, or RECs, represent the intangible environmental attributes of energy generated from renewable sources, like wind or solar, and delivered to the grid. A REC is issued for each megawatt-hour (1,000 kilowatt-hours) of renewable energy generated and delivered.
For a current list of the offsets and RECs in Cloverly's portfolio and an interactive map showing their locations, go to HERE.
How does Cloverly calculate carbon emissions?
The Cloverly API calculates carbon emissions and corresponding offsets in real time, using inputs tailored to the type of activity (package shipping). Cloverly uses distance traveled and fuel consumption to determine emissions for fleet trucks, aircraft, or other vehicles. Additionally, Cloverly would also consider the package weight and origin and destination locations.
What is a carbon credit?
A carbon credit is the same as a carbon offset. It represents the reduction of 1 metric ton (2,205 pounds) of carbon emissions—technically, 1 metric ton of carbon dioxide or its equivalent. "Carbon credit" is often used to refer to the financial instrument. "Carbon offset" often refers to an offsetting action. However, the terms are commonly used interchangeably.