Glossary entry

Offsetting Strategy


Offsetting Strategy

Offsetting Strategy means a plan specifying:

(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; and

(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 [●] %] by 2050; and

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

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Drafting notes

For more information about carbon credits purchased from regulated and voluntary markets, as well as what contract writers need to consider when including offsetting in contracts, see TCLP’s Offsets, Insets and Credits Explainer.

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.


Widely applicable including to corporate climate policies, supply chain agreements, climate laws, investment and finance documentation.