Carbon offsetting is a mechanism that enables individuals and organizations to advance climate action by supporting certified third-party projects that contribute to the reduction or removal of greenhouse gas (GHG) emissions.
Certified projects issue carbon credits, which act as an instrument for selling or trading the project’s associated removal or reduction impact. Each carbon credit represents a single unit of GHG emissions (being one (1) tonne carbon dioxide equivalent (tCO2e)) that is reduced or removed from the atmosphere or the carbon cycle. A unit of GHG emissions can be reduced or removed through various methods or project types.
Carbon offsetting provides financing for these certified projects. The purchase of a carbon credit enables the buyer to contribute to these projects, and one often purchases offsets in an amount equivalent to an estimated carbon footprint.
A project's ability to issue offsets depends on a set of rigorous conditions – in order for a project to issue offsets, the emission reductions or removals must be validated as additional, measurable, auditable, permanent, and unique.