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02Compensation and context

How carbon offsets work

Learn why offsets are used, what they are intended to fund, and why they should not be confused with direct emissions reductions.

01CarbonBlaze explainer

Offsets link one party’s emissions to an activity elsewhere.

An offset is commonly understood as the use of a credit associated with an emissions reduction, avoidance, or removal activity to compensate for emissions from another activity. This is a claim about a relationship, so its context matters.

02CarbonBlaze explainer

Direct reductions and credit use should be reported distinctly.

A credible climate plan starts by identifying and reducing emissions within its own boundaries. Credit use may be discussed separately, with enough detail for a reader to understand the purpose, source, and limitations of the claim.

03CarbonBlaze explainer

The strength of the claim depends on the evidence trail.

Project documentation, quantification, independent assessment, registry records, and the intended wording of a claim all shape what a reader can reasonably conclude.

Common questions

Do offsets replace cutting emissions?

No. They are generally discussed as a complementary mechanism, while direct emissions measurement and reduction remain separate activities.

Can offsets fund tree planting?

Some projects involve reforestation, restoration, or other land-based activities. Project type alone does not establish the quality of the resulting credit or claim.