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Carbon offsetting sounds simple. You work out your emissions and buy carbon credits. The money goes into projects that reduce or remove an equal amount of CO2 from the air. In theory, it makes you ‘net zero’ for those emissions.
There’s a catch though. Some carbon offsets deliver real, measurable benefits. But others make claims that fall apart on closer inspection. If you’re a business trying to do the right thing, it can feel confusing. Who do you trust? And how do you know your money isn’t funding greenwashing?
This guide will walk you through choosing a carbon offsetting provider. We’ll cover what makes a good project, red flags to watch for, and practical steps to make sure your offsets count.
Short on time? Here’s what you need to know:
Before you dive in, check out our recent Net Zero blogpost Practical guide to carbon offsetting for small businesses in the UK, to see if offsetting is right for your business.
Offsetting works best once you’ve done everything you can to cut direct emissions. That means:
Once you’ve reduced what you can, offsetting can help with the rest. It balances out the emissions you can’t avoid and can cover your historical footprint. Whilst you can’t undo the past, you can still do something now – and that’s always better than doing nothing.
One thing to be aware of is that relying on offsets too early can slow down making real carbon reductions in your business. It’s easy to fall into the trap of paying to offset instead of cutting emissions at source. But used correctly, offsets are invaluable for unavoidable emissions. They also help fund projects at the forefront of climate science.
If you’re still unsure whether carbon offsetting is for you, check our practical guide to carbon offsetting for small businesses.
Carbon offsetting projects fall into two main camps:
Carbon avoidance helps prevent future emissions, but it doesn’t deal with what’s already in the atmosphere. For long-term impact, carbon removal is stronger. It locks carbon away for years, keeping it out of the atmosphere.
The world of carbon credits can be messy. Some projects deliver real, measurable cuts in emissions. But not all offset projects deliver what they promise.
Some tree planting schemes fail because saplings don’t survive, or only temporarily slow deforestation. In some cases, local communities are displaced to make way for projects, or wealthy countries buy land in poorer regions and dictate how it’s used. Many projects also claim carbon savings that would have happened anyway, without your offset funding.
These examples show why it’s important to carefully assess projects. Without scrutiny, your investment may have little real impact or could even cause harm.
Fortunately, there are also high-quality projects that can make a real difference. These include:
By choosing well, your money can fund genuine climate action. But poor choices may support empty promises and put your reputation at risk.
Oxford University has developed a framework for credible carbon offsetting. The updated 2024 version sets out four principles:
Read the full Oxford Principles of Carbon Offsetting for more details.
When you choose a provider, you’re putting trust and money into someone else’s hands. A good partner will be transparent about how they work and have a good track record to prove it. Their projects should show clear evidence of reducing or removing carbon.
Here are a few things to check before you sign up:
1. Certification and verification
Look for internationally recognised standards such as:
These bodies make sure projects are real, measurable, and independently audited. A trustworthy provider should also offer third-party verification beyond these schemes.
2. Additionality
A credible project should only exist because of the carbon offset funding. If it would have happened anyway, it cannot be classed as additional. Make sure your money is enabling extra carbon reductions or removals.
3. Permanence
Check how long the carbon will stay out of the atmosphere. For example, a newly planted forest may sound fantastic, but trees can be cut down or burn in wildfires. Look for projects with guarantees that the benefits will last over the long term.
4. Avoiding harm
Choose projects that don’t displace communities, threaten wildlife, or cause unintended environmental problems. For example, preventing logging in one area shouldn’t push it to another.
5. Ongoing monitoring and reporting
Check that projects are actively monitored. A good provider gives regular updates and shows the project is delivering results over its lifespan. One-off checks are not enough to ensure lasting impact.
6. Retirement of credits
Make sure every credit you buy is listed on a public registry and retired in your name. This stops double-counting or resale, and guarantees your offset is unique.
7. Alignment with your values
Choose a provider whose values match your own. They should encourage emissions reductions first, be transparent about their processes, and support wider environmental and educational goals. These signs often indicate a partner you can trust.
There are several types of offsetting projects, each with its own benefits and challenges. Here are some of the main ones you’re likely to come across:
1. Reforestation
Planting new trees absorbs greenhouse gases. It creates habitats for wildlife, improves air quality, and provides local jobs. The main challenge is permanence, as young forests can be cut down or damaged.
2. Protecting existing forests
These projects prevent deforestation and protect biodiversity. The difficulty is proving the forest would have been lost without the project, and that logging doesn’t simply move elsewhere.
3. Renewable energy
Projects such as wind farms, solar panels, and hydro schemes replace fossil fuel energy. They help reduce reliance on coal and gas, especially in regions still dependent on fossil fuels. These projects can be costly though and need long-term investment.
4. Waste management
Recycling, waste prevention, composting, and biogas projects reduce emissions and cut pollution. The challenge is maintaining and monitoring the project over time to make sure real reductions happen.
5. Methane capture
Methane is far more damaging for the environment over the long term than CO2. Capturing it from landfills or farms can significantly reduce greenhouse gases. These projects are technically complex though and can be expensive.
6. Direct air capture
This technology removes CO2 directly from the air. It’s highly effective and cutting edge but currently very costly, which limits large-scale use.
7. Enhanced weathering
Spreading silicate minerals over land can speed up natural chemical reactions that absorb CO2. It’s still an experimental process and needs more research to confirm the long-term impact.
8. Biochar
Biochar is a charcoal-like material that stores carbon in the soil and improves soil health. It requires careful production and application to be effective and environmentally safe.
9. Water filter programmes
These projects cut emissions by reducing the need to burn firewood for boiling water. They also improve community health. The carbon impact is smaller than direct removal projects, but the co-benefits are useful.
10. Cookstove projects
Efficient cookstoves reduce the need to burn firewood or charcoal, lowering CO2 and other harmful emissions. They improve indoor air quality but need proper training and maintenance to work well.
Beyond carbon reduction, high-quality projects often bring other social and environmental benefits, such as:
Greenwashing is unfortunately common in carbon offsetting, so it pays to be cautious. Watch out for these red flags:
If in doubt, ask questions. A trustworthy offsetting provider will be transparent about their projects and results.
Even well-intentioned businesses can accidentally mislead customers about their environmental impact. Greenwashing happens when claims exaggerate the effect of your offsetting efforts. You can prevent this by:
Offsetting should never be a shortcut for reducing emissions, even if you think it’s cheaper. It can end up wasting money and giving a false impression of impact.
For real examples of greenwashing and the fines incurred, see Cleanhub’s blog and The Sustainable Agency. These show why being honest, transparent, and careful when choosing carbon offsets is so important.
Before committing to an offsetting provider, it’s worth doing a little homework. Here’s a quick checklist for you to follow:
It’s also worth setting a budget for offsets. High-quality credits cost more, but they ensure your money is funding lasting impact.
Here at The Business Village, we’ve chosen to work with Carbon Neutral Britain to offset our unavoidable emissions. Here are a few reasons why:
Our goal is to show credibility and impact. We want to know our money is making a difference for the planet, communities, and wildlife.
Careful choice is key to successful carbon offsetting. Look for projects that are verified, transparent, and permanent – and steer clear of vague claims or low-quality credits.
Offsetting is only part of the journey, not the end goal. Reduce what you can, offset what you can’t, and keep improving. When used wisely, offsets help tackle unavoidable emissions and fund projects that make a real impact on climate change.
At The Business Village, we provide flexible office space and expert support and connections to initiatives like Carbon Neutral Britain and Net Zero Barnsley. Join our community and take practical steps towards a greener, more sustainable future.
Get in touch with:
Practical guide to carbon offsetting for small businesses in the UK https://www.netzerobarnsley.co.uk/2025/09/22/carbon-offsetting-guide-small-businesses/
Why ESG is good for Barnsley businesses – and how to get started https://www.business-village.co.uk/2025/04/14/why-esg-matters-for-barnsley-businesses/
How to reduce waste in your business https://www.netzerobarnsley.co.uk/2024/09/23/how-to-reduce-waste-in-your-business/
10 easy ways for your business to go green in 2023 https://www.netzerobarnsley.co.uk/2023/08/31/10-easy-ways-for-your-business-to-go-green-in-2023/
