What is carbon offsetting?

Carbon offsetting for businesses

Carbon offsetting is a trading mechanism that allows you to invest in schemes and projects that reduce, avoid, or remove emissions as a way to reduce the carbon emissions produced by your business. Because climate change is a global issue, the schemes and projects that you invest can be anywhere in the world.

There are two main types of carbon offsetting:

Carbon capture

Carbon capture involves capturing carbon dioxide (CO2) from the atmosphere. The most common method of carbon capture is planting trees, which absorb CO2 as they grow.

Carbon reduction

Carbon reduction focuses on improving energy efficiency and creating alternative ways to produce energy.

Certification and regulation

At the moment, carbon offsetting is not regulated by any governing bodies. However, some schemes choose to become certified to demonstrate that they operate in a sustainable and credible way.