A carbon offset is a reduction in Greenhouse Gas (GHG) emissions – or an increase in carbon storage (for example, through tree planting) – used to compensate for emissions that occur elsewhere. A carbon offset credit is a transferable instrument that has been certified by governments or independent certification authorities to represent a reduction in CO2 emissions of one metric tonne, or an equivalent amount of another GHG. The purchaser of an offset credit can retire it in order to apply the inherent reduction to their organization’s emission reduction goals.
Why do Companies Buy Offsets?
An organization can purchase offsets to address its scope 1, 2, and 3 emissions. Securing and retiring offsets can be a useful component of a voluntary emissions reduction plan for a business with a commitment to reducing its emissions footprint. Offsets are typically used in addition to actions taken within an organization’s operational limit to reduce pollution.
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