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What is carbon offsetting ? 

Carbon offsetting is the process of removing carbon dioxide or other greenhouse gas emissions from the atmosphere. This process can take shape in many different ways. 


What types of carbon offsetting projects are there? 

Carbon offsetting is typically done by companies in order to compensate for emissions produced in other parts of their operations, in order to achieve their Net Zero or carbon neutral goals. Companies and organizations may participate in compliant or voluntary offsetting projects. 

  • Voluntary offsetting projects involve companies participating in or funding certified projects which capture carbon from the atmosphere, such as forestry projects. 
  • Compliant carbon offsetting projects refer to regulations and legislation which obliges companies to participate in carbon offsetting, such as with the European Union Emissions Trading Scheme, where companies can buy carbon offsetting credits to compensate for excess emissions that they have produced beyond their regulatory limit.


Common offsetting contribution projects can include funding the development of renewable energy systems such as wind turbines, hydroelectric dams, or biomass energy. Companies can also fund carbon sequestration projects such as with reforestation, or blue carbon projects that naturally take carbon out of the air.

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