A carbon offset is a tradable instrument representing a measurable reduction, avoidance, or removal of one tonne of CO2-equivalent emissions, purchased to compensate for emissions occurring elsewhere. Offsets are generated by certified projects such as reforestation, renewable energy, or direct air capture and verified against recognised methodologies. They matter as a market mechanism for funding mitigation, though their credibility hinges on additionality, permanence, and avoidance of double-counting.
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- Offset quality is judged by additionality (the reduction would not have happened otherwise), permanence, and rigorous measurement, reporting, and verification. Blockchain projects increasingly tokenise offsets to improve traceability and to neutralise their own operational emissions.