Carbon credits are verified certificates representing one tonne of CO₂e reduced, avoided, or removed from the atmosphere. They are the units traded in the voluntary carbon market. Carbon offsetting is the act of purchasing and retiring these credits to compensate for emissions that can’t yet be eliminated. For example, a company might fund a tree planting carbon offset or clean energy project to balance its footprint. In short: carbon credits are the currency of carbon markets, while offsetting is how that currency is used to deliver real-world climate impact.

Beyond value chain mitigation, or BVCM, is a key concept in the SBTi’s Corporate Net-Zero Standard, which is the leading net-zero framework for businesses. BVCM encourages organisations to support climate action beyond their own operations, alongside reducing their business emissions, on the journey to net-zero.

Rather than relying solely on carbon offsetting, BVCM focuses on contributing to global decarbonisation through high-integrity carbon credits. These may include projects like reforestation, renewable energy, or tree planting carbon offset initiatives that remove or avoid emissions elsewhere.

First published in 2020 and revised in 2024, the Oxford Principles provide a science-based framework for businesses to ensure that the carbon offsetting they carry out supports genuine, lasting climate benefits rather than temporary or low-quality solutions.

The principles urge organisations to reduce their own emissions first, then use high-quality carbon credits for any remaining emissions. They also encourage a gradual shift towards carbon removals – such as durable tree planting carbon offset projects – and transparent reporting.

Carbon offsetting is not inherently greenwashing – but it can be if used to avoid real emissions cuts or if low-quality carbon credits are purchased. When done transparently and responsibly, offsetting drives finance to impactful climate solutions. Integrity comes from pairing carbon offsetting with deep emissions reductions, independent verification, and open reporting.

Avoidance credits come from projects that prevent emissions from being released – such as protecting forests from deforestation or funding clean cookstoves. Removal credits, by contrast, are generated when carbon is actively taken out of the atmosphere, for example through afforestation, biochar, or direct air capture. Both play important roles in carbon offsetting, but only removal credits directly lower atmospheric CO₂ concentrations. High-integrity portfolios often include a mix of avoidance and removal carbon credits.

The Gold Standard is one of the world’s most trusted certification bodies for carbon credits. Established by WWF and other NGOs, it ensures that carbon offsetting projects deliver verifiable climate impact while supporting sustainable development goals. To issue Gold Standard credits, projects must meet strict criteria for additionality, permanence, and co-benefits for local communities.

The Verified Carbon Standard (VCS), developed by Verra, is the most widely used program for verifying carbon credits globally. It ensures that carbon offsetting projects meet rigorous requirements for additionality, monitoring, and verification.

Each tonne of CO₂e reduced or removed generates a unique carbon credit recorded in Verra’s public registry. This transparency helps buyers trust that their investments fund genuine emissions reductions and contribute to global climate goals.

Carbon offsetting can play an important role in achieving net zero, but only alongside deep emissions reductions. High-quality carbon credits allow businesses to compensate for residual emissions that can’t yet be eliminated.

Credible climate strategies always prioritise emissions reduction alongside carbon offsetting. Companies should measure their footprint, set science-based targets, and decarbonise as much as possible. Purchasing high-quality carbon credits can be used to neutralise what remains.

This approach aligns with best-practice frameworks like the Oxford Principles and the Science Based Targets initiative, ensuring that carbon offsetting is used responsibly and complements, rather than replaces, genuine climate action.