CO₂ compensation

What does compensation mean?

_{CO2offsetting} describes the process by which companies or private individuals compensate for the emissions they cause by investing in measures to reduce greenhouse gases . This can be done, for example, by supporting global climate protection projects. Such projects reduce greenhouse gas emissions. Examples of_{CO2 compensation} projects include the promotion of renewable energies or peatland restoration projects.

How does_{CO2 compensation} work?

The_{CO2 footprint}(also_{CO2 balance} for companies) forms the basis for offsetting_CO2. _{CO2 calculators} are used to record how many emissions a private individual or company emits. The emissions that cannot be avoided through behavioral changes or reduction measures can be offset.

1. Selection of climate protection projects: Companies or individuals select suitable_{CO2 projects} that significantly reduce or save_CO2.
2. Purchase of_{CO2 certificates}: A certificate is issued for every ton of_CO2 that a project saves. These certificates are subject to recognized standards such as the Gold Standard.
3. Verification and transparency: The climate protection projects are regularly reviewed to ensure that the reduction in emissions is actually achieved. 

For some companies in certain sectors, the purchase of climate certificates is mandatory. This is ensured by emissions trading (ETS). All other companies can purchase certificates on a voluntary basis.

What are the benefits of CO₂ compensation for companies?

Companies are one of the biggest levers for reducing global CO₂ emissions. According to the Federal Statistical Office, companies in Germany emitted around 573.2 million tons of CO₂ in 2020. Three times the amount of emissions compared to private households. Integrating sustainability into the corporate strategy is therefore essential. 

However, instead of CO₂ offsetting, companies should always focus on CO₂ reduction as the most important measure. CO₂ offsetting should only be used for unavoidable and therefore residual emissions.

Application examples for CO₂ compensation in companies

By using software solutions for carbon footprinting, companies can easily record their emissions. After a targeted reduction, a company's offsetting requirements can be determined based on the residual emissions and targeted investments can be made in climate protection projects . Providers such as Planted enable companies to manage CO₂ holistically, from the CO₂ balance sheet to reduction and CO₂ offsetting.

Selection of climate protection projects for CO₂ offsetting

The selection of trustworthy and certified climate protection projects is crucial to the success of carbon offsetting. Projects that are certified according to standards such as the Gold Standard guarantee transparency and a verifiable climate impact. Companies should make sure to invest in projects that are both environmentally and socially sustainable.

The projects should also meet certain quality standards, such as additionality: a climate protection project only becomes possible through financing.

Challenges and points of criticism in CO₂ compensation

Even if carbon offsetting offers an effective way of promoting climate protection, it must not be seen as the sole solution. The primary focus must be on avoiding and reducing emissions. Offsetting only applies to unavoidable emissions. In addition, offsetting projects should be selected carefully in order to avoid greenwashing avoid greenwashing.

Would you like to calculate your_{carbon footprint} and offset unavoidable emissions? Book a free consultation with our team of experts.