#Carbon credits vs carbon offsets series

After all, GHGs are released into the global atmosphere, so no matter where the reduction happens, the same positive benefit is achieved.Ĭarbon offsets are an exciting way to channel capital to much-needed causes, while we look for the solutions and technology we need for hard-to-reduce emissions. Stay tuned for more.Įvery carbon offset represents 1 tonne of reduced CO2 or its greenhouse gas (GHG) equivalent, that compensates for emissions made elsewhere.īy purchasing carbon offsets, anyone can finance a certified climate action project, and bring about a real reduction in emissions elsewhere in the world.

#Carbon credits vs carbon offsets series

This article is part of a new explanatory series by the Paia team, where we will break down everything you need to know about the most current topics.

So what are carbon offsets? What are carbon credits? And how do they work? To offset these emissions, companies have turned their attention to the promise of carbon offsets and carbon credits, weaving them into their wider decarbonisation strategies. The urgency of our planet’s rising temperatures cannot be understated, and more and more companies and governments have announced net-zero goals.īut as companies and governments conceptualise their net-zero roadmaps, they will unavoidably continue to generate emissions in the short-term. Figure 1: The Carbon Credit Ecosystem, by the Paia Team