Carbon credits are currently around USD6 per ton and could rise to over USD35 per ton.

Based on selling carbon credits the PSECC Energy projects for Lapsset Corridor & Kenya will bring in USD 510 million based on USD 6 per ton for Carbon Offsetting credits or US $3.4 Billion each year, based on Bloomberg prices of $40 per ton.

What is carbon offsetting?

Offsetting is a way of paying for others to reduce emissions or absorb CO2 to compensate for your own emissions. For example, by planting trees to suck carbon out of the atmosphere as they grow, or by delivering energy-efficient cooking stoves to communities in developing countries.

Based on selling carbon credits the PSECC Energy projects will bring in USD 510 million based on USD 6 per ton for Carbon Offsetting credits or US $3.4 Billion each year, based on Bloomberg prices of $40 per ton.

Carbon Credits you can trust

The price of one ton of carbon can vary depending on various factors such as the type of carbon offset project, location, market conditions, and the provider. In 2021, the average price for one ton of carbon offsetting was around $15 to $30. It is important to note that these prices are subject to change and can differ significantly depending on the specific circumstances. In 2024 an average carbon price of between $40-43 per metric ton can be obtained, rising to $43-48 per ton in 2025.

If the Renewable Energy developments within the Lapsset Corridor and Kenya equate to savings of carbon dioxide each year of 85 million tons then the value obtained by selling carbon offsets depends on the market price of carbon credits. Carbon credits are typically traded in the form of emission reductions equivalent to one metric ton of carbon dioxide (CO2) or its equivalent greenhouse gases. The price of carbon credits varies significantly depending on the market, regional policies, and demand-supply dynamics. However, as from 2024 the price of carbon credits ranges from $40 to $43per metric ton of CO2. To calculate the value that can be obtained from selling the 85 million tons of carbon dioxide, we need to multiply the number of tons by the market price per ton. Let’s take an average market price of $40 per ton for illustration: Value of carbon offsets = 85 million tons * $40 per ton = $3.4 billion. Therefore, based on the given scenario, selling the saved 85 million tons of carbon dioxide as carbon offsets could potentially yield a value of $3.4 billion for 2024 and even more for 2025. However, it’s important to note that carbon credit prices are subject to market fluctuations and may vary significantly over time.

Planting trees can’t replace slashing carbon emissions

Many companies use offsetting to appear environmentally friendly, even when their whole business is based around burning fossil fuels. Airports like Heathrow and airlines such as Easyjet offer a carbon offsetting service, allowing passengers to pay to plant up to 12 trees per month. Oil giant BP runs a Target Neutral programme which incorporates a range of offsetting projects, including protecting forests in Brazil.

Electric Bikes

Carbon dioxide savings for one hour of electric bike use is 0.44Kg

The amount of carbon dioxide savings in an hour of using an electric bike depends on various factors, such as the source of electricity used to charge the bike’s battery or the amount of carbon dioxide emitted during the production of the bike and its battery. However, compared to a conventional gasoline-powered vehicle, electric bikes generally have considerably lower carbon dioxide emissions. On average, an electric bike emits around 22 grams of CO2 per kilometre, while a conventional car emits approximately 180 grams of CO2 per kilometre. Assuming an average speed of 20 kilometres per hour, using an electric bike for one hour would result in approximately 440 grams (0.44 kilograms) of carbon dioxide emissions saved compared to using a car for the same distance.

Carbon credits are then paid our, currently £32 per ton so carbon dioxide savings for one hour of electric bike use is 0.44Kg.

As a comparison – The carbon dioxide emissions from using a diesel car for one hour can vary depending on the specific make and model of the car, as well as driving conditions and speed. However, on average, a diesel car emits around 2.68 kilograms of CO2 per litre of fuel burned. Considering a typical diesel car with an average fuel consumption of 5 litres per 100 kilometres, this would result in approximately 134 grams (0.134 kilograms) of carbon dioxide emissions per kilometre. If we assume an average speed of 50 kilometres per hour, using a diesel car for one hour would result in approximately 6.7 kilograms (6700 grams) of carbon dioxide emissions.

So using an electric bike for one hour produces 15 times less carbon dioxide when compared to a diesel car used for one hour.