Carbon offsetting is the act of compensating for greenhouse gas (GHG) emissions through the purchase and application of certificates representing an equivalent amount of GHGs that have been voluntarily reduced by another entity who has invested in carbon reduction or sequestration projects. Each carbon offset represents one metric ton (approximately 2,205 lbs.) of carbon dioxide reduced. They are often used by individuals or organizations who desire to reduce their carbon footprint but are otherwise not able to do so in a practical or viable way.
How Carbon Offsets Work
Offsets are generated from projects that undergo a rigorous, independent evaluation to determine that the emission reductions meet the following criteria:
- They must be real
- They must be permanent
- An independent 3rd party must verify them
- The project must have been implemented voluntarily in the absence of any legal or regulatory requirements
- Funding from carbon offset sales is necessary for project implementation
The sale of offsets will compensate for the project development while providing additional funding for future mitigation activities.