How does carbon offsetting work?

Carbon offsetting

Carbon offsetting involves paying for schemes that assess your greenhouse gas emissions and balance them by investing in environmental projects. It does not reduce emissions at the source and should be a last resort for those unable to minimise their emissions directly.

There are four main types of carbon offsetting:

Below are the four types of projects you can choose from to offset your greenhouse gas emissions. It is important to review all of the options and see which is the best to suit yours or your businesses needs.

Renewable energy

Investing in renewable energy means providing funds to build energy farms such as wind, solar, or hydro. These sites not only generate renewable energy but also help communities by creating local jobs. Additionally, there are global schemes that allow governments of countries producing renewable energy to gain much-needed finance which can be used for important projects.

Community projects

Carbon offsetting projects that help communities often involve providing access to cleaner more energy-efficient options such as solar lighting. These projects can have a direct, positive impact on people's lives, but are also typically small in scale so may not be suitable for meeting large-scale emission reduction requirements.

Conservation & forestry

Conservation and Forestry projects focus on preserving existing forests and planting new trees to absorb CO2. This form of offsetting is very popular and supports biodiversity, however it can take years for trees to grow and start absorbing significant amounts of CO2. So, if you are looking for immediate, measurable results, this may not be the right project for you.

Waste-to-energy

Waste-to-energy projects involve capturing non-recyclable waste and converting it into usable forms of energy.  Such projects can benefit communities by providing a sustainable energy source. They can also reduce reliance on other energy sources such as wood, which in turn helps preserve forests and support ecosystem health.