Frequently Asked Questions

FAQ About Carbon Offsets

Below, you’ll find answers to common introductory questions about carbon markets.
In the future, we’ll expand this page to include insights into other
environmental and social markets as well.

What is a carbon offset?

A carbon offset represents a reduction or removal of one metric tonne of carbon dioxide (CO2) from the atmosphere that is used to compensate for emissions that occur elsewhere.

Carbon offsets can be generated by the reduction or removal of any greenhouse gas (GHG) known to cause climate change, but carbon dioxide is used as the point of reference because it is the most common GHG in the atmosphere and remains in the climate system for a very long time.

Why do we need carbon offsets?
Offsetting carbon is not the single long-term solution to the climate crisis, but is one of the few and invaluable tools that we have right now to drive real GHG emission reductions and removals as quickly as possible.

Research has shown that companies which buy offsets are generally much more likely to be making internal reductions as well. This indicates that companies using offsets also tend to do the most overall to reduce emissions.

How are carbon offsets generated?
A carbon offset can be generated through a number of activities that reduce or remove emissions, ranging from planting trees, preserving forests, changing agricultural practices, distributing fuel-efficient cookstoves, capturing and destroying landfill gas, and more.
What is a carbon offset project?
Carbon offset projects implement activities that reduce or remove emissions from the atmosphere, for example planting trees, changing agricultural practices, distributing fuel-efficient cookstoves, and more.
Who are the key players in the carbon markets?

A carbon offset represents a reduction or removal of one metric tonne of carbon dioxide (CO2) from the atmosphere that is used to compensate for emissions that occur elsewhere.

Carbon offsets can be generated by the reduction or removal of any greenhouse gas (GHG) known to cause climate change, but carbon dioxide is used as the point of reference because it is the most common GHG in the atmosphere and remains in the climate system for a very long time.

Who are the key players in the carbon markets?

A carbon offset represents a reduction or removal of one metric tonne of carbon dioxide (CO2) from the atmosphere that is used to compensate for emissions that occur elsewhere.

Carbon offsets can be generated by the reduction or removal of any greenhouse gas (GHG) known to cause climate change, but carbon dioxide is used as the point of reference because it is the most common GHG in the atmosphere and remains in the climate system for a very long time.

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