Offsetting

What is carbon offsetting?

Carbon offsetting is a mechanism that enables companies and individuals to offset their CO₂ emissions by purchasing carbon credits on the voluntary carbon market (VCM). This financing supports emission reductions, removals, or storage, such as regenerative practices on agricultural land.

However, there is also criticism of this system. One criticism is that companies have no incentive to change their own behaviour  and can merely "buy their way out." Nonetheless, studies show that companies practicing offsetting reduce their emissions 1.8 times faster than those that do not. Another problem is that many climate protection projects, especially in the global South, are not certified or verified, calling their effectiveness into question.

Carbon offsetting can be a first step towards making a company's climate targets visible and supporting climate protection projects simultaneously. It is important to ensure that projects are certified and verified by reputable organisations to guarantee the actual reduction of greenhouse gas emissions. Overall, carbon offsetting should not be seen as a stand-alone solution but as part of a comprehensive strategy to reduce greenhouse gas emissions.