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Google Ditches Carbon Offsets, Here's Its Net Zero Focus Now

Google has stopped buying cheap carbon offsets that previously supported its carbon neutrality claim. The company, facing increased emissions due to artificial intelligence and data centers’ massive power use, now aims for net zero carbon by 2030. 

Since 2007, the tech giant claimed carbon neutrality by purchasing offsets to match emissions from its operations. However, their latest report states:

“Starting in 2023, we’re no longer maintaining operational carbon neutrality.”

The shift marks a move towards more substantial emission reductions and advanced carbon removal solutions.

Google’s Approach to 2030 Net Zero Goal 

In 2021, Google set an ambitious target to achieve net zero emissions across all operations and value chains by 2030. This includes reducing 50% of Scope 1, Scope 2, and Scope 3 emissions from a 2019 baseline, and investing in nature-based and technology-based carbon removal solutions to neutralize the rest. 

The Science Based Targets initiative (SBTi) will validate Google’s absolute emissions reduction target.

Google’s net zero goal aligns with the IPCC’s definition and will adapt as global standards evolve, aiming to balance anthropogenic emissions with removals while maximizing positive planetary impact.

Achieving net zero emissions involves navigating significant uncertainties, including the environmental impact of AI and the clean energy transition. The Big Tech anticipates an initial rise in total greenhouse gas emissions before reductions align with the net zero goal.

In 2023, Google’s GHG emissions were 14.3 million tCO2e, a 13% year-over-year increase and 48% higher than in 2019, driven in part by a 37% rise in Scope 2 (market-based) emissions.

Google's GHG / carbon emissions 2023
Chart from Bloomberg

The rise was also mainly due to increased data center energy consumption and supply chain emissions. Integrating AI into products poses further challenges, as the energy demands and emissions associated with AI are expected to grow. Below is Google’s data center carbon-free energy (CFE) map.

Google CFE Map

Google carbon-free energy map with data center operations
Google CFE percentage in every grid region in which we have data center operations, including third-party-operated facilities

Despite the GHG emissions increase, the overall growth rate of emissions slowed compared to previous years. Key emissions trends are:

Emissions reductions:

  • All Scope 1, 2 (market-based), and 3 absolute emissions across operations and value chain increased in 2023.
  • This includes emissions from data centers, office operations, supply chains, and consumer hardware devices.

Residual emissions:

  • 2023 marked the initiation of the tech company’s carbon removal strategy.
  • Google is in the early stages of establishing impactful partnerships and have begun contracting for carbon removal credits.

Google’s Carbon Credits Strategy

Google aims to neutralize its residual emissions with high-quality carbon credits by 2030. Starting in 2023, the search engine firm shifted its strategy from maintaining operational carbon neutrality to accelerating various carbon solutions and partnerships. 

As seen in the chart below from Bloomberg, Google’s carbon offsets plummeted to zero in 2023, from 3 million tons of carbon credits.

Google's carbon offsets
Chart from Bloomberg

The goal now is to play a significant role in advancing both nature-based and technology-based carbon removal solutions to mitigate climate change.

To support the advancement of carbon removals, Google addresses the key challenges these solutions face. Technology-based solutions, for instance, currently lack scale and are often expensive, operating mostly as small pilots. To tackle this, Google pledged $200 million in 2022 to Frontier, an advance market commitment aimed at accelerating carbon removal technologies by guaranteeing future demand. 

In 2023, Google completed its first carbon credit offtake deals through Frontier, including agreements with Charm Industrial, CarbonCapture, and Lithos Carbon.

Another challenge is the reluctance of corporations to participate in the nascent carbon removal market. Google believes governments and companies must play complementary roles in demonstrating and scaling promising carbon removal approaches. 

In March 2024, Google pledged to match the U.S. Department of Energy’s Carbon Dioxide Removal Purchase program dollar for dollar. Google plans to contract at least $35 million in carbon removal credits over the next 12 months.

Advancing Carbon Removals

Google is committed to working with partners to identify and scale promising carbon removal solutions, hoping other companies will join the effort. 

Google contracted carbon removal portfolio
From Google environmental report

In addition to these partnerships, Google.org provided a $1 million grant in 2023 to the Integrity Council on Voluntary Carbon Markets (ICVCM) to support high-integrity solutions. This grant brought Google.org’s total contributions to strengthening carbon markets to over $7 million. This fund supports organizations like The Gold Standard, Rocky Mountain Institute, the Voluntary Carbon Market Initiative, and Climate Action Data Trust.

Beyond purchases and partnerships, Google drives advancements in research and technology. In 2023, Google introduced the Google Carbon Removal Research Awards, providing over $3 million in funding to universities and academic research institutions. 

These funds support scientific studies on carbon removals, including the effects of ocean alkalinity enhancement on coastal ecosystems and the potential of enhanced weathering projects in forests.

By the end of 2023, Google signed three carbon credit offtake deals, purchasing around 62,500 tCO2e of removal credits, contracted for delivery by 2030. Google recognizes this as just the beginning and is committed to accelerating its carbon removal efforts in the years to come, continually evolving its approach to counterbalance its residual emissions.

The post Google Ditches Carbon Offsets, Here’s Its New Net Zero Focus appeared first on Carbon Credits.

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Carbon Footprint

The Strategic Case for Nature-Based Carbon Investments

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Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.

1. Define the sourcing problem before choosing a project

Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.

This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.

CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.

2. Develop nature-based carbon investments around the actual supply chain

The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?

Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.

Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.

The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.

3. Compare the proposal with other ways to protect supply

WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.

The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.

The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.

The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.

4. Establish what the carbon outcome could count toward

Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?

Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.

SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.

For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.

Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.

5. Build a financial case that survives weaker assumptions

Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.

Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.

Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.

A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.

6. Fund a pilot with a clear expansion decision

Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.

Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.

Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.

This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.

Discuss a sourcing opportunity with CCC

Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.

Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.

Sources

  1. Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
  2. World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
  3. Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
  4. United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
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Carbon Footprint

How to buy plastic credits, and what to check before you do

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A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.

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Carbon Footprint

EU carbon credit claims after 27 September 2026

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EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.

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