Skip to content
offsettingclimatepolicyguide

Carbon Offsetting: Is It Worth It? The Honest Truth

Does carbon offsetting actually work? We look at the evidence behind popular offset schemes and give you an honest verdict on when offsetting makes sense.

By CarbonBuddy ·

Carbon offsetting — the practice of paying someone else to reduce emissions to compensate for your own — has become a multi-billion pound industry. Airlines sell it during booking. Companies use it to claim “net zero” status. But does it actually work?

The honest answer is: sometimes, partially, with major caveats. This guide gives you the evidence, not the marketing.

What Is Carbon Offsetting?

A carbon offset represents the reduction, avoidance, or removal of one tonne of CO₂ equivalent from the atmosphere. You pay for offsets to “cancel out” your own emissions.

The most common types:

  • Reforestation and afforestation: Planting trees that absorb CO₂ as they grow
  • Forest protection (REDD+): Paying communities not to cut down existing forests
  • Renewable energy: Funding solar or wind projects in developing countries
  • Cookstove projects: Replacing wood-burning stoves with cleaner alternatives
  • Methane capture: Collecting methane from landfill or agricultural waste
  • Soil carbon: Improved agricultural practices that increase soil carbon storage

The Problems with Offsetting

A string of investigations and academic studies since 2022 have raised serious questions about offset quality.

1. Permanence

Trees can burn, be cut down, or die from disease. A forest planted as an offset in 2015 that burns in a wildfire in 2025 has not offset anything — the CO₂ returns to the atmosphere. The carbon you emitted by flying remains in the atmosphere for 300–1,000 years.

This “permanence problem” is particularly acute for forestry offsets, which are the most common type sold to consumers.

2. Additionality

An offset project must demonstrate that its carbon savings are “additional” — that they wouldn’t have happened without the offset funding. This is extremely difficult to prove.

A Guardian/Zeit investigation in 2023 found that approximately 90% of Verra-certified rainforest offset credits — from the world’s largest offsetting certifier — were “phantom credits” that did not represent real carbon reductions. The protected forests would largely not have been deforested anyway.

3. Leakage

Protecting one area of forest sometimes simply shifts deforestation pressure to an adjacent unprotected area. The net carbon outcome may be much smaller than the offset claims.

4. Baseline Problems

Calculating how much CO₂ a project saves requires estimating what would have happened without it — a counterfactual that’s inherently uncertain. Many projects use generous baseline assumptions that exaggerate their impact.

5. Social Issues

Some offset projects — particularly large-scale land-based projects in the Global South — have been linked to violations of Indigenous peoples’ land rights and the displacement of local communities.

What Does the Evidence Actually Show?

A major study published in Science (West et al., 2023) examined 26 jurisdictional REDD+ programs (large-scale forest protection offsets) and found that only 3% of credits issued corresponded to actual deforestation avoided.

A separate analysis by CarbonPlan examined a large portfolio of California forest offset projects and found widespread overestimation of carbon storage, partly because of how reference forests were selected.

This doesn’t mean all offsets are worthless — but it means the average offset you buy through an airline booking or a corporate net zero scheme has a much lower probability of representing genuine carbon reduction than advertised.

What Types of Offset Work Better?

Not all offsets are equally problematic. Evidence suggests better performance from:

Methane capture projects: Methane is a potent greenhouse gas and capturing it from landfill or agricultural operations is measurable and verifiable. The carbon savings are real and immediate.

Cookstove projects: Replacing wood-burning or charcoal stoves with efficient biomass or solar stoves reduces both CO₂ and particulate emissions. Impact is measurable through fuel consumption monitoring.

Direct air capture: Technically captures CO₂ from the atmosphere and stores it permanently (in geological formations). Very expensive currently ($300–600/tonne) and operating at tiny scale, but genuinely permanent and verifiable. Climeworks’ Orca and Mammoth plants in Iceland are real examples.

Enhanced weathering: Spreading crushed silicate rocks on agricultural land, which accelerates natural CO₂ absorption. Promising research but not yet commercially scaled.

What About Airline Offsets?

Airlines are required to participate in CORSIA (the Carbon Offsetting and Reduction Scheme for International Aviation) from 2024. This covers some international flights.

However, CORSIA uses offset credits from many of the same registries whose quality is in question. Consumer-facing airline offsets — the checkbox at booking — are almost entirely voluntary, use varied quality standards, and the 2023 investigations found most of the underlying projects to be of questionable efficacy.

Bottom line: Paying to offset your flight is better than nothing, but don’t treat it as truly neutralising your emissions. The best approach remains flying less.

Corporate Net Zero Claims

Many UK companies and brands claim to be “net zero” or “carbon neutral” — including several major airlines and energy companies. These claims frequently rely heavily on offsetting rather than actual emissions reductions.

The Science Based Targets initiative (SBTi) — currently the gold standard for corporate climate commitments — requires companies to reduce actual emissions by at least 90% before using any offsets. Very few companies claiming “net zero” meet this standard.

When Does Offsetting Make Sense?

Despite its problems, offsetting is not entirely without value. It makes the most sense when:

  1. You’ve genuinely reduced emissions as much as practically possible and are offsetting true residual emissions — not using offsetting as a substitute for action
  2. You choose higher-quality project types (methane capture, direct air capture, verified cookstove projects) over cheap forestry credits
  3. You use reputable standards — Gold Standard and Verra VCS are the major registries, though both have had credibility issues
  4. You treat it as a bridge measure, not a permanent solution

If you want to go further, consider contributions to organisations pushing for systemic change rather than individual offsets: climate litigation funds, renewable energy campaigns, or political advocacy groups.

Better Than Offsetting

For most people, the best alternatives to offsetting are:

  • Actually reducing emissions (see our full reduction guide)
  • Investing in certified high-quality removals if you want to compensate for residual emissions
  • Political engagement — supporting carbon pricing, renewable energy policy, and corporate emissions standards

Our Verdict

Carbon offsetting as currently sold — especially cheap forestry credits through airlines and retail platforms — has significant evidence problems. The average consumer offset probably removes substantially less CO₂ than advertised.

This doesn’t mean do nothing. It means:

  1. Prioritise actual reductions
  2. If you offset, choose carefully (Gold Standard, methane or direct air capture projects)
  3. Don’t let offsetting be an excuse to avoid the harder behavioural changes

Use our free calculator to understand your emissions, then focus on the highest-impact reductions first.


FAQ

Are all carbon offsets bad? No — quality varies enormously. High-quality offsets (direct air capture, verified methane capture, Gold Standard cookstove projects) deliver genuine, measurable carbon savings. Cheap forestry credits sold by airlines are the most problematic category.

How much does a carbon offset cost? Prices range from £3–5/tonne (cheap forestry credits of questionable quality) to £300–600/tonne (genuine direct air capture). The gap reflects real differences in quality and permanence.

Is carbon offsetting legal greenwashing? The UK Competition and Markets Authority (CMA) has been scrutinising “net zero” and “carbon neutral” claims. From 2024, marketing claims that rely on offsetting rather than actual emissions reductions are under increasing regulatory pressure. Several companies have already withdrawn misleading green claims following investigation.

What is the Gold Standard for carbon offsets? Gold Standard is an independent foundation that certifies offset projects against strict additionality, permanence, and social co-benefit criteria. Gold Standard certified projects are generally of higher quality than uncertified credits, though not immune to the fundamental problems of forecasting-based additionality.

Should I offset my flights? If you’re going to fly, offsetting is better than not offsetting — even if the offset is imperfect. But don’t treat it as truly cancelling your emissions. The most effective approach is to fly less frequently and offset remaining flights through higher-quality projects if you choose to.

Calculate your own carbon footprint

Free, takes 2 minutes, runs entirely in your browser.

Use the free calculator →