
July 22, 2025
The process by which a company, organisation, or individual compensates for their greenhouse gas (GHG) emissions by funding projects that reduce or remove an equivalent amount of carbon dioxide (CO₂) or other GHGs from the atmosphere. Offsetting is typically considered a necessary component of net zero strategies, especially for emissions that are challenging to eliminate directly. However, the effectiveness of offsetting is contingent upon the quality and credibility of the projects involved. Low-quality or poorly verified offset projects can contribute to greenwashing, where the actual volume of GHG reduction or removal is misrepresented or inaccurately quantified.