Task Group ends on 21 Feb, 2023

UKGBC launches new Carbon Offsetting and Pricing Project

In response to growing calls for guidance from its members, UKGBC is embarking on a…

Climate Change Mitigation National and Regional Collaboration Advancing Net Zero Task Group

Past task group

In response to growing calls for guidance from its members, UKGBC is embarking on a new project to see greater clarity on carbon offsetting and pricing.

While recognising that designing for reductions in whole life carbon and improvements in energy efficiency are the most important steps to prioritise in decarbonising buildings, responsibly offsetting residual emissions remains a critical component of achieving net zero. However, when used irresponsibly, carbon offsets can increase exposure to greenwashing and result in detrimental impacts on climate action.

Current challenges with the UK’s un-regulated Voluntary Carbon Market (VCM) means it is difficult to assess what is a ‘high-quality’ offset and will deliver positive outcomes and what will not. For the VCM to succeed, and for the planet to benefit from the responsible use of carbon offsets, it is vital that industry has access to clear guidance, alongside an effective global governance system.

Project Overview

This project will build on UKGBC’s Renewable Energy Procurement and Carbon Offsetting guidance. It aims to better equip those who purchase offsets or make investment decisions at building asset or organisational level to do so in a way that aligns with their climate goals and supports the transition to net zero.

Scope

Initial feedback suggests the project scope will cover:

1. What is a market-leading approach to offsetting? What can I do to avoid being acused of ‘greenwashing’?

Ensuring greater consistency in how carbon pricing and offsetting is carried out and remains transparent without ‘greenwashing’. Elaborate on the recommended use of transition funds, such as investment in:

Greenhouse gas removals with short and long-term storage (following Oxford Principles for Net Zero Aligned Carbon Offsetting)
Local offsetting (at a UK- or urban- scale) and projects with high co-benefits

This should include the exploration of attitudes towards vintage (year of actual emissions reduction/removal), insetting (investments in decarbonising value chain) and offsetting scope 3 emissions.

2. Does UKGBC guidance align with emerging Standards and Guidance?

Identify where UKGBC guidance could support and align with emerging governance and codes of practise, such as ICVCM (Integrity Council for Voluntary Carbon Market), VCMI (VCM Integrity Initiative) and NZCBS (Net Zero Carbon Buildings Standard).

3. What is Internal Carbon Pricing and how can it help me?

Explore the interface between carbon pricing and offsetting, including the pros and cons of adopting an internal carbon price (ICP) and the mechanisms that could be adopted on an asset or orgaisational level – including internal fees and shadow prices.

Guide organisations towards how to set a carbon price and the need to consider wider market, policy and legislative factors
How voluntary ICPs differ from compliance-based carbon pricing, e.g. Section 106 payments or Emissions Trading Systems.

It is important to note that the project scope is still evolving and will be refined to effectively respond to stakeholders’ experiences in purchasing offsets and implementing carbon pricing in line with the existing guidance.

How to get involved

We are taking expressions of interest from potential Working Group members over the next few weeks. The deadline is Tuesday 21^st February 2023.

This opportunity is ideal for organisations that want to purchase high-quality offsets for built assets or advise clients on offsetting strategies. Involvement in this project should also provide organisations with a developed understanding of the Voluntary Carbon Market and Internal Carbon Pricing.

We expect working group members to have working knowledge or thought leadership in:

Purchasing offsets
Setting an internal carbon price using internal fee or shadow price (or other) mechanisms
Oxford Offsetting principles and carbon removals with long-term storage
“Local” or UK-based offsetting

Please contact the ANZ Team if you meet this criteria and would like to express your interest in joining the Working Group, or if you would simply like to stay up to date with the project. Working group participants will be given priority if they are part of UKGBC member organisations.

Timelines

The following dates will be targeted for working group meetings:

Working Group Meeting 1	Thursday 2^nd March 2023
Working Group Meeting 2	Monday 27^th March 2023
Working Group Meeting 3	TBC

It is anticipated a draft update of the guidance will be written by end of April and formally launched in Summer 2023.

This project forms part of UKGBC’s Advancing Net Zero Programme, which has been made possible this year thanks to the generous support of our Programme Partners: BAM Construct UK, Berkeley Group, Buro Happold, CBRE, Grosvenor Property UK, Hoare Lea, ISG, JLL, Lloyds Banking Group, ROCKWOOL, Turner & Townsend, and Project Partner: Arup.

UKGBC is committed to actively targeting a diverse representation in the composition of all project groups. We want to be inclusive to everyone regardless of ethnicity, religious beliefs, gender, marital status, age, disability, sexual orientation, or political beliefs and encourage our members to support our desire. While applicants will be chosen based on their experience, we encourage consideration of the above when putting forward individuals to apply.