Carbon Offsetting

Carbon offsetting is a carbon trading mechanism that allows companies to compensate for their emissions by investing in external projects that remove or avoid carbon – like reforestation, renewable energy, or methane capture.

It’s not a replacement for reducing emissions but can be used for unavoidable ones.

The credibility of offsets depends on whether they are verified, additional, and permanent. Standards include e.g. Gold Standard and Verra’s VCS.

Examples of schemes:

• Renewable Energy Projects
• Forestry and Land Use Projects
• Energy Efficiency Projects
• Methane Capture and Utilization
• Waste Management and Recycling Initiatives
• Carbon Capture and Storage (CCS)
• Household and Community-Based Projects