Glossary term

Offsetting Strategy

Last Updated:

Number of definitions:

1

Definition 1

Offsetting Strategy means a plan specifying all of the following:

(a) the verified credits from a recognised Offset Provider that may be used by [the Company] to offset its Residual Emissions

(b) how [the Company] will transition

(i) from using credits from offsetting projects that avoid or reduce emissions of GHG to projects that remove emissions of GHG

(ii) to GHG removals that involve long-term storage methods with a low risk of reversal

(c) how [the Company] will reduce its use of credits by reducing its Residual Emissions [by [●] percent] by 2050

(d) the impact of the relevant offsetting projects on a just transition and wider social and environmental goals.

Drafting notes and guidance

Contract writers may choose to define the last item referring to a just transition and wider social and ecological goals. If it is not defined, it may be difficult to enforce because, depending on the agreement, it may be unclear what this looks like.

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