What are carbon offsets?

Everyday actions – like driving a car, flying and even using your computer – produce emissions of carbon dioxide, which contribute to climate change. Scientific consensus states that carbon emissions must be reduced by 80% by 2050 to avoid catastrophic climate change.

Businesses have an important and essential role to play in meeting these targets and carbon offsetting enables them to play their part in the climate change battle.

Carbon offsets are credits for reductions in greenhouse gas emissions made at another location, such as wind farms which create renewable energy and reduce the need for fossil-fuel powered energy.

Carbon offsets are quantified and sold in metric tonnes of carbon dioxide equivalent (CO²e). Buying one tonne of carbon offsets means there will be one less tonne of carbon dioxide in the atmosphere than there would otherwise have been. This could be, for example, a project to swap coal-fired power stations with solar panels or hydro power. Carbon offsetting is often the fastest way to achieve the deepest reductions within businesses and it also often delivers added benefits at the project site, such as employment opportunities, community development programmes and training and education.