Despite the absence of a global, regulated market to date, Australia has already made significant headway with creating its own carbon market.
These actions are not a panacea, because there will always be a long-term need to decarbonise through technology.
According to these standards, carbon offsetting can only be implemented by organisations to offset residual emissions once they have undertaken deeper emissions cuts.
Offsetting early allows organisations to immediately tackle greenhouse gas emissions generated within their operations or supply chains, especially if there is no direct control over the emissions or the ability to decarbonise immediately.
Organisations need to check if credits are quantifiable by using recognised measurement tools against a credible baseline.
As global regulations come into effect after the agreement, it should be much easier for organisations to ascertain the quality of an offset.
Organisations can either buy or generate offsets by choosing from four options: trade, purchase, develop, or fund.
Companies that develop or fund their own projects are more likely to maximise economic, social, and environmental value in the long-term.
Thanks to one of the few small victories to emerge from the climate summit last year, organisations will soon be able to operate within a more regulated global carbon market.
Organisations need to base their offset strategy on their emissions profile, decarbonisation levers, and business strategy.