What is meant by 'Carbon Offset'?

Carbon offset refers to the practice of compensating for carbon dioxide emissions produced by an individual, organization, or event by funding projects that reduce or remove an equivalent amount of CO2 from the atmosphere. This concept recognizes that while it may not always be feasible to eliminate all carbon emissions directly, contributions can be made to projects such as reforestation, renewable energy, or energy efficiency initiatives that help to balance out those emissions.

By investing in these external projects, entities take responsibility for their carbon footprint and support initiatives that contribute to sustainability and environmental health. This approach forms a critical part of broader climate strategies aimed at achieving net-zero emissions and promoting sustainability practices. It involves creating a financial link between emissions produced and actions taken to mitigate those impacts elsewhere in the world.