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What is a carbon offset?

A carbon offset is used to compensate for greenhouse gas emissions by supporting an equivalent reduction or removal of emissions elsewhere.

This is normally done using carbon credits. A carbon credit generally represents one metric tonne of carbon dioxide equivalent (CO2e) that has been reduced or removed through an eligible project. When a credit is used to compensate for emissions, it should be retired so that it cannot be sold or claimed again.

Carbon offset projects can include woodland creation, peatland restoration, methane capture and other activities that reduce emissions or remove greenhouse gases from the atmosphere.

The terms carbon offset and carbon credit are often used interchangeably, but they describe slightly different things. A carbon credit is the tradable unit, while offsetting describes using that credit to compensate for emissions.

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