Carbon market glossary
    Glossary term

    Carbon Offset

    A widely used but imprecise term for a carbon credit applied against emissions elsewhere. Carbon Compared prefers carbon removal or carbon avoidance, because the two describe very different climate outcomes.

    Why the term carbon offset matters for carbon credit buyers

    Offset describes how a credit is used, not what the underlying project did, which is why the term causes so much confusion. An avoidance credit keeps CO₂ out of the atmosphere that would otherwise have been released; a removal credit takes CO₂ that is already there and stores it. Both have a role, but they are not interchangeable in a net-zero plan, and frameworks such as the SBTi treat them differently. When comparing projects, look past the word offset and check whether the project delivers removal or avoidance, and how durable the storage is.

    Put it into practice

    Compare carbon removal and avoidance projects side by side, with accreditations, vintages, and independent quality ratings.