Types of carbon offsets

Forestry projects can take the form of reforestation (planting trees where a forest once stood), afforestation (planting trees in areas where they did not previously exist) or avoided de-forestation (preserving trees already present). Trees sequester (collect and trap) carbon through the process of photosynthesis, in which they convert carbon dioxide and water into oxygen and plant matter. Thus, as trees grow they remove carbon dioxide from the atmosphere. Learn More

Methane capture projects typically capture and/or combust methane generated by farm animals or landfills. Methane is a much more powerful greenhouse gas than carbon dioxide; when it is burned it is converted to carbon dioxide, thus reducing the global warming effect by 96%. Learn More

Renewable energy projects generate offsets through the development of wind power, solar power, bio-fuels and other renewable energy sources. By utilizing renewable energy sources, these projects avoid producing the emissions that would have been generated by conventional energy projects (such as coal-burning power plants). Learn More

Energy efficiency projects create offsets by reducing the energy demand for a given activity or location, then selling the resulting avoided carbon emissions. Well-implemented energy efficiency projects are among the best offset projects. Not only do they lead to absolute reductions in emissions, they often also carry important secondary benefits, such as avoided deforestation, improvements in human health (in the case of improved stoves) and sustainable development benefits. Learn More

Geological sequestration projects trap carbon dioxide in geological sinks, for example by injecting CO2 into depleted oil and gas reservoirs. Taken together, these sinks could potentially hold hundreds to thousands of gigatons (billions of tons) of carbon. The technology for geological sequestration is still emerging and some concerns about safety and environmental impacts remain. Learn More