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19 December 2024 Glossary

What is Carbon Offset

Carbon offsetting involves individuals or legal entities compensating for their own greenhouse gas (GHG) emissions by financing projects that a) prevent the emission of the corresponding amount of GHG elsewhere or b) remove the corresponding amount of GHG from the atmosphere.

By Klappir

Carbon offset or contribution

Carbon offsets are defined in the Climate Act: "When a party intervenes in another party's actions to reduce greenhouse gas emissions and / or sequester carbon from the atmosphere and uses confirmation of such contraction or sequestration to offset its own emissions in part or in full degree".

To put it simply, carbon offsetting involves individuals or legal entities compensating for their own greenhouse gas (GHG) emissions by financing projects that a) prevent the emission of the corresponding amount of GHG elsewhere or b) remove the corresponding amount of GHG from the atmosphere.

A carbon offset represents a measurable reduction or removal of carbon dioxide equivalent (CO₂-e) emissions, verified through rigorous standards. Each offset equates to one metric ton of CO₂-e prevented from entering or removed from the atmosphere. Offsets are typically used by companies and individuals to compensate for their own emissions by balancing them with emissions reductions elsewhere.

Key Benefits of Offsets:

  • Precise Compensation: Offsets match your emissions one-to-one, making it a clear and measurable way to achieve carbon neutrality.
  • Certified Reductions: Offsets are validated by third-party bodies, ensuring their impact and reliability.
  • Immediate Impact: Offsets directly fund projects that reduce or remove carbon emissions right now.

What is a Carbon Contribution? A carbon contribution is a voluntary donation or investment toward climate projects, which supports long-term climate solutions but doesn’t provide a direct, one-to-one offset for emissions. Contributions can fund projects that drive innovation, support ecosystem conservation, or advance renewable energy, focusing on broader environmental or social impacts without directly matching emissions.

Key Benefits of Contributions:

  • Flexible Climate Action: Contributions support projects beyond immediate emissions reductions, helping advance long-term solutions.
  • Wider Environmental and Social Impact: Contributions can aid projects that foster sustainable development, biodiversity, and community resilience.
  • No Formal Carbon Claim: Contributions aren’t designed to offset specific emissions but show an ongoing commitment to supporting climate-positive initiatives.

Which One is Right for You?

Choose Offsets if:
Your goal is to neutralize specific emissions and work toward carbon neutrality. Offsets allow you to claim a clear reduction in your environmental footprint with certified emissions reductions.

Choose Contributions if:
You want to support a broader climate or sustainability impact beyond immediate emissions reductions. Contributions are ideal for organizations and individuals looking to drive change and innovation in climate solutions without the need for specific offset claims.

Our Commitment to Quality and Transparency

ICR and Klappir are your trusted partners in delivering impactful, resilient carbon credits. Each project in the International Carbon Registry (ICR) portfolio meets the highest standards, verified by accredited bodies to ensure integrity and effectiveness.

Public Transparency: You can audit all projects on CarbonRegistry.com to view project details, track progress, and verify outcomes, giving you full visibility into your offset journey.

Through a seamless and integrated solution Klappir’s customers can, from the Sustainability Platform, manage emissions and compensate with high-quality carbon credits.

By Klappir19 December 2024

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