Q.1102: What is Carbon Offset?

Ans. More accurately referred to as a greenhouse gas (GHG) offset, a carbon offset is a tradable commodity representing a unit of GHG emissions reduction or avoidance. Typically, a carbon offset represents a reduction or avoidance of one metric ton of carbon dioxide equivalent (CO2e).

Carbon offsets are activities that neutralize all or some of the greenhouse gases emitted by one party by reducing the emissions or increasing the greenhouse gases absorbed by another. Common offset projects involve renewable energy (like wind power generation), energy conservation or reforestation, which is currently the only way to remove carbon dioxide from the atmosphere.

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