---
title: Offsetting
date: 2024-03-27T13:21:16Z
modified: 2025-07-24T11:01:32Z
permalink: "https://chancerylaneproject.org/glossary/offsetting/"
type: glossary-term
status: publish
excerpt: ""
wpid: 1333
---

## Definition

**Offsetting** means compensating for emissions by buying and retiring one or more carbon credits or units from a project that meets all of the following:

(a) it is compliant with \[_insert name of voluntary standard or principles, for example the Oxford Principles for Net Zero Aligned Carbon Offsetting and/or the United Nations Framework Convention on Climate Change (UNFCCC) Paris Agreement Crediting Mechanism \[or successor UNFCCC mechanism_\]

(b) 1 tonne of [Carbon Dioxide Equivalent](https://chancerylaneproject.org/glossary/carbon-dioxide-equivalent-co2e-or-co2eq/) [Greenhouse Gases (GHGs)](https://chancerylaneproject.org/glossary/greenhouse-gases-ghgs/) are avoided, reduced or removed by the project

\[(c) it prioritises removing GHGs from the atmosphere within the value chain prior to turning to offsets, rather than avoiding or reducing third party emissions of GHGs\]

\[(d) it has considered and implemented strategies to gradually minimise reliance on offsets\]

\[(e) it has considered the importance of carbon removal offsetting for any Residual Emissions\]

\[(f) it takes account of a just transition and addresses wider social and environmental goals\]

\[_Drafting note: contract writers may choose to define this item (f) referring to a just transition and wider social and ecological goals. If it is not defined, it may be difficult to enforce because, depending on the agreement, it may be unclear what this looks like._\]

(g) it ensures the credits or units are measured, verified, demonstrably additional to what would otherwise have occurred, reported, correctly accounted for, are not double counted (that is, counted by more than one party, or credited under more than one carbon crediting programme) and have low risks of reversal and negative impacts on people and the environment

(h) it ensures that the credits or units are from activities that provide social safeguards, promote equity and benefit both ecosystems and local communities.

_\[Drafting note: contract writers may prefer to specify which voluntary or regulated market they want to purchase carbon credits from.\]_