What is a Carbon Offset?

Defined

A carbon offset is a certificate that represents the reduction or removal of harmful emissions. One offset is issued for every one tonne of carbon pulled from the atmosphere.

It’s important to note that a carbon offset is different from a carbon credit, which is another common tool used to further sustainability.

Process

The path of a carbon offset can be broken down into three easy steps.

1. Offsets are generated by entities called projects, which range from individual efforts to large-scale operations.

2. The offsets are then sold to buyers who want to counter the effect of their emissions. The money the projects receive goes toward funding new environmental initiatives.

3. Finally, the offsets are retired, meaning permanently taken off of the open market. This is done to ensure that nobody gets credit for reducing emissions that somebody else already reduced.

At each step of the process, registries, or independent third parties, ensure that each carbon offset is legitimate and generates genuine climate action.

Conclusion

Think of carbon offsets as a tool to be used in the fight against climate change. They have their limitations and will not solve all of our problems, but when combined with other solutions will help tip the scales in favor of a promising future.