Carbon offsetting is the practice of compensating for greenhouse gas emissions by funding verified projects that reduce or remove an equivalent amount of CO₂ from the atmosphere. Businesses use carbon offsetting as part of their climate strategy to address emissions that cannot be eliminated immediately through reduction measures.
The process must follow the mitigation hierarchy: measure emissions accurately using the GHG Protocol, reduce wherever technically and economically feasible, then offset remaining emissions through verified carbon credits aligned with standards like Gold Standard, Verra VCS, or UN CER.
Carbon offset projects generate verified emission reductions through activities like renewable energy generation, reforestation, peatland restoration, or methane capture. Each project must demonstrate additionality (wouldn't occur without offset funding), be independently verified, and use robust monitoring systems. Credits are issued per tonne of CO₂ reduced or removed, tracked through digital registries, and retired when purchased to prevent double-counting.
The three primary international standards are Gold Standard (founded by WWF, considered the most rigorous), Verra VCS (Verified Carbon Standard, the largest global registry), and UN CER (Certified Emission Reductions under the Clean Development Mechanism). In the UK, domestic projects are verified under the Woodland Carbon Code and Peatland Code.
ISO 14068-1 (published November 2023) is the first international standard for carbon neutrality. It positions carbon neutrality as a stepping stone toward long-term Net Zero goals, requiring organisations to measure, reduce, and offset emissions through verified credits with transparent disclosure.
Compensating for greenhouse gas emissions by funding verified projects that reduce or remove an equivalent amount of CO₂ from the atmosphere.
When done correctly through verified standards, yes. But offsets should complement, not replace, direct emission reductions.
Not inherently — but it can be if used to avoid genuine reductions. Credible offsetting uses verified projects and follows the mitigation hierarchy.