E45: Carbon Offset – Above Green

Requirement Summary

The measure can be claimed if a contract has been signed for investment in a carbon offset project. Carbon offsets represent funding for third-party action to reduce or recapture carbon emissions that would otherwise be emitted to the atmosphere. This measure does not impact operational CO2 savings, but it reduces the total carbon footprint of the project. This measure can be claimed for a Zero Net Carbon certification only once the project has achieved 40% or greater savings in Energy.

Intention

Investing in carbon offsets reduces the net impact of building construction and operations to the atmosphere. By putting a value on carbon emissions reduction, the market is incentivized to implement additional measures to mitigate carbon emissions impact.

Approach/Methodologies

In order to claim this measure, the design team must specify the amount of carbon offsets that have been procured with a signed contract. Typically, each carbon offset unit represents the mitigation of one metric tonne of carbon dioxide or equivalent greenhouse gas. When carbon offsets are claimed in the EDGE app, the offset value is compared to the total estimated carbon emissions of the improved case in order to calculate the total offset percentage.

Potential Technologies/Strategies

Many different carbon offset products are available from providers that represent projects across a range of sectors and regions. While the most common carbon offset projects are related to funding new renewable energy installations, such as solar or wind energy, a number of other projects are available related to energy efficiency upgrades, methane or carbon capture and sequestration and forestry restoration. The EDGE tool does not make restrictions on the type or origin of carbon offsets, though project teams may choose to procure specific offset products based on their desired impact (e.g. support clean energy development) or a preference for locally-based projects. While the EDGE tool recognizes carbon offsets equally based on the equivalent metric tonnes of CO2, the cost of individual carbon offsets may vary depending on regional availability and project type.

Relationship to Other Measures

Carbon offsets may be applied in combination with other measures that reduce the emissions associated with building construction and operations. These may include energy efficiency measures that improve the passive performance of a building, such as increased insulation or higher efficiency glass; the reduction of fossil fuel energy use in active systems, such as through high efficiency equipment; or the replacement of fossil-fuel based electricity from the grid with on-site generated or off-site procured renewable energy. Together, carbon reduction measures can be combined with carbon offsets to achieve a zero-net carbon balance for the building.

Assumptions

The base case assumes that no carbon offsets have been procured for the project.

Compliance Guidance

The design team must be able to provide documentation of the origin and type of carbon offset procured, the organization issuing the offset, and evidence of third-party verification by the appropriate regulatory authority. Finally, a copy of a signed contract must be provided in order to confirm execution of the carbon offsets. Note: carbon offsets must be new projects that are retired after the offset is issued. Also, EDGE does not recognize carbon offsets that are based on materials combustion.

Design Stage

Post-Construction Stage

No documentation is required at the design stage.

At the post-construction stage, the following must be used to demonstrate compliance:

Documentation of the carbon offset provider, stating formal certification or other third-party verification by an appropriate authority; and
Description of carbon offset project, including the methods by which carbon reductions are made; and
Copy of contract or other formal document stating the amount of offsets procured in equivalent metric tonnes of CO2