Carbon Offsetting
Carbon offsetting is the process of compensating for greenhouse gas emissions produced by a person, company, or activity by investing in projects that reduce or remove an equivalent amount of emissions elsewhere. Offset projects commonly involve renewable energy, reforestation, energy efficiency, or methane capture.
- In voluntary markets, companies or individuals buy offsets to meet self-imposed climate goals.
- In compliance markets, such as under the EU ETS or CORSIA, offsets are used to meet regulated emissions targets, subject to specific rules and limitations.