Carbon offsets are reductions in carbon dioxide or greenhouse gas emissions made to offset emissions produced elsewhere. Carbon offsets are measured in tonnes of carbon dioxide equivalent (CO2 e) and can represent six basic categories of greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), fully fluorinated hydrocarbons (PFCs), partially fluorinated hydrocarbons ( HFC) and sulfur hexafluoride (SF 6). The carbon offsetting unit represents a reduction of one tonne of carbon dioxide or its equivalent in other greenhouse gases. Compensation is usually achieved through financial support to projects that reduce greenhouse gas emissions in the short or long term. The most common type of project is energy from renewable sources such as wind farms, biomass energy or dams. Others include energy efficiency projects, industrial pollutants disposal or agricultural by-products, landfill methane disposal and forestry projects.


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Source: (, 2019)

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