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How companies use carbon offsetting to hit emissions goals

Updated: Aug 15, 2023

Step 1: Offsetting project set up

configuración del proyecto de compensación

The establishment of a project to lessen global warming. Many are avoided-emissions projects, which do not remove carbon from the atmosphere but stop greenhouse gases from being released as a result of deforestation or the burning of fossil fuels.

Step 2: Credits are calculated

Numerous techniques are used to calculate carbon credits. Projects that prevent deforestation calculate what would occur if they didn't exist. The discrepancy between what actually occurs and what could have occurred is claimed as credit by projects.

Step 3: Company makes net zero strategy

Firms calculate the emissions produced by their own activities each year. In order to meet their net zero strategy, alongside efforts to cut emissions, some companies decide to buy carbon offsets.

Step 4: Company searches for carbon credits

Carbon credits can be bought directly from a project or through a broker who specializes in them. The majority of offsets have Verra and Gold Standard's approval. They can claim significant net reductions because these credits are used to offset emissions.

Step 5: Company makes climate claim

Once a company figures out how much carbon it wants to offset, it buys the number of credits that goes with that amount. Then, many assert that the business or item they are selling is now carbon neutral.


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