Carbon offsetting is an established feature of sustainability practice.
In principle, it allows businesses to balance or offset their carbon emissions via carbon-reducing or mitigating projects. A project like this might be a cookstove initiative in Africa, an afforestration project in Argentina, or a mangrove restoration in Southeast Asia.
At CFP Energy, we’re at the forefront of decarbonisation through sustainable projects. To purchase voluntary carbon credits, contact our separate dedicated team here.
In many ways, carbon offsetting is a boon for energy-intensive industries. Counteracting emissions that would otherwise be impossible to eliminate or decrease, offsetting allows industries to meet their climate obligations while remaining financially viable.
But for all its advantages, offsetting comes with potential drawbacks. Where carbon reductions could be achieved at source (i.e., using solar panels instead of energy from power stations), carbon offsetting becomes a substitution for meaningful change.
To ensure climate targets are genuine, and not just a form of ‘creative accounting’, businesses should look at their emissions at source, as well as their net contributions, to ensure that offsetting is used responsibly, and not as a form of greenwashing.
How to Offset Carbon Footprint Emissions
Although the concept of carbon offsetting - compensating carbon emissions by funding equivalent reductions elsewhere - is relatively simple, knowing which carbon offsetting projects to invest in, and how to establish their credibility, can be a little more complex.
In practice, for any business looking to offset its emissions, there are three key stages to keep in mind. These will ensure the proper execution of the offsetting project.
Measuring emissions
Firstly, to ensure accurate offsetting, businesses should calculate their carbon footprint. This can be done through services like can be done through several services, including Carbon Trust or Sustainable Business Consulting, or otherwise carbon accounting platforms such as Sphera or Watershed.
Purchasing offsets
Once carbon emissions have been properly calculated, businesses should buy carbon credits from verified offset projects. These projects range from marine restoration to afforestation. Each credit purchased typically represents one metric tonne of CO₂, either reduced or removed from the atmosphere.
Verification and certification
Finally, before buying into an offset project, it is important to seek independent verification. Third-party bodies - such as Verra and Gold Standard - regularly verify these projects to ensure they meet standards of additionality, permanence, and co-benefits such as job creation and health improvements.
Are Carbon Offsets Greenwashing?
Greenwashing, thanks to its prominence in the media, is a term almost everyone is likely familiar with by now. It describes the practice of carrying out - or claiming to carry out - sustainable actions to achieve an environmentally friendly reputation.
But while greenwashing is easy to spot, it is important to separate fact from fiction.
So that carbon projects are legitimate, make sure they are verified by reputable third-party organisations. These include ones already mentioned, such as Verra, or the Gold Standard, as well as trusted offset registries like the Climate Action Reserve.
As well as this, it’s crucial to ensure any projects you buy into guarantee additionality.
An assurance that carbon reductions or removals would not have happened in the project’s absence, additionality protects against companies that attempt to offset (or ‘greenwash’) their emissions with environmental projects that would occur anyway.
Exploring Carbon Offset Schemes
Different Types of Carbon Offset Projects
Carbon offset projects include numerous approaches to greenhouse gas (GHG) reduction. Running from renewable energy initiatives to clean power alternatives, carbon offset projects are as varied as they are impactful. They include:
Forestry Projects
These involve either planting new trees (afforestation or reforestation) or protecting existing forests from deforestation and degradation. Trees absorb carbon dioxide (CO₂) from the atmosphere through photosynthesis, storing it in their biomass and soil.
Carbon sequestration - Trees naturally capture and store CO₂.
Biodiversity - Forests support diverse ecosystems.
Water cycle regulation - Forests help maintain rainfall patterns and reduce erosion.
Forestry is nature-based and relies on biological processes. It’s often slower in impact but provides long-term benefits and co-benefits like habitat preservation.
Methane Capture
This involves trapping methane (CH₄), a potent greenhouse gas, from sources like landfills, livestock manure, and agricultural waste. The captured methane can be flared or used as biogas for energy.
Methane is ~25x more potent than CO₂ over a 100-year period.
Capture technologies include anaerobic digesters, landfill gas systems, and manure management systems.
Methane capture targets a specific gas and is often implemented in agricultural or waste management settings. It’s more technical and infrastructure-dependent than forestry.
Energy Efficiency
This refers to upgrading systems—like buildings, appliances, and industrial processes—to use less energy for the same output. Examples include LED lighting, smart thermostats, and efficient motors.
Demand-side management - Reducing energy use without sacrificing performance.
Cost savings - Lower energy bills and operational costs.
Grid resilience - Less strain on power infrastructure.
Energy efficiency reduces emissions indirectly by lowering fossil fuel consumption. It’s often the most cost-effective and immediate climate action.
Carbon Capture
Carbon capture and storage (CCS) involves capturing CO₂ emissions directly from industrial sources (like cement or steel plants) and storing it underground or using it in products.
Point-source mitigation - Targets emissions at the source.
Storage options - Geological formations, mineralization, or utilization in products.
High-tech solution - Requires advanced engineering and monitoring.
Unlike forestry, CCS doesn’t rely on nature—it’s a technological fix for hard-to-abate sectors. It’s expensive but crucial for industries with few alternatives.
Sustainable Agriculture
This approach improves farming practices to reduce emissions and enhance soil carbon storage. Techniques include cover cropping, reduced tillage, organic fertilisers, and minimising synthetic pesticide use.
Soil health - Healthy soils store more carbon and retain nutrients.
Emission reduction - Less reliance on fossil-fuel-based inputs.
Food system resilience - Supports long-term productivity and biodiversity.
Sustainable agriculture is a hybrid approach—part nature-based, part management-based. It addresses both mitigation and adaptation, unlike more narrowly focused strategies.
Verifying the Impact of Carbon Offsetting Schemes
Carbon offset credibility depends on rigorous verification processes that confirm real-world impact. Unlike projects that create the false appearance of additionality, credible voluntary carbon projects (VCMs) prevent the same carbon reductions from being counted multiple times.
By incorporating regular monitoring and transparent reporting, from clear documentation to third-party auditors (such as SCS Global Services), VCMs like this ensure the ongoing integrity of the project, allowing buyers to buy into projects based on measurable benefits rather than vague, unsubstantiated claims.
Choosing High-Quality Carbon Offset Projects
To recap: quality carbon offsets require certification by recognised standards and established bodies. They should deliver additionality (carbon reductions that wouldn't have occurred without the project’s existence), co-benefits, where the project demonstrates wider social gains, they also should exhibit permanence (proving that any sequestered carbon remains sequestered long term), and they should demonstrate verification, evidencing the amount of emissions sequestered or avoided.
Lastly, make sure your carbon offsetting project is aligned with international mandates, such as the UN Sustainable Development Goals (SDGs). This will help ensure that your carbon offsetting contributes to broader global sustainability efforts, not just project-by-project results, a key factor in showing your commitment to Net Zero.
Put together, each of these stages should ensure that your project is not only the right fit for your goals but that it guarantees quality delivery, from evaluation to execution.
At CFP Energy, we’re here to support you in your carbon offsetting and carbon reduction goals. From assessing your business and building a customised offsetting strategy to sourcing and retiring carbon credits on
your behalf, we provide a full end-to-end voluntary carbon market service. Contact our carbon team today to explore your options.
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