Carbon Offsetting vs Carbon Removal: What’s the Difference, and Why It Matters

Climate change demands not just action—but smart action. Two strategies often discussed are carbon offsetting and carbon removal. They sound similar, but they play very different roles. Understanding those differences is crucial for companies, policymakers, and individuals working toward net zero.

What is Carbon Offsetting?

Carbon offsetting refers to actions or projects that compensate for greenhouse gas (GHG) emissions by ensuring an equivalent reduction or avoidance of emissions elsewhere.

• Examples: funding renewable energy (solar, wind), protecting forests, or providing clean cookstoves.

• A carbon credit represents a measurable reduction or avoided ton of CO₂ equivalent.

Strengths:

• Usually lower cost than removal.

• Widely available with diverse project types.

• Helps cover emissions that are hard to eliminate in the short term.

Limitations:

• Additionality is hard to prove (would the project have happened anyway?).

• Permanence risks (e.g., forests can burn).

• Risk of leakage (emissions shifting elsewhere).

• Not truly removing CO₂ already in the atmosphere.

What is Carbon Removal?

Carbon removal (or carbon dioxide removal, CDR) refers to processes that actually pull CO₂ out of the atmosphere and store it safely.

Examples include:

• Natural removal: reforestation, soil carbon sequestration, mangroves, sea grasses.

• Technological removal: direct air capture (DAC), bioenergy with carbon capture and storage (BECCS), mineralization.

Strengths:

• Tackles legacy emissions already warming the planet.

• High potential for long-term or permanent storage.

Challenges:

• Higher costs and energy demands.

• Still limited in scale.

• Requires strong verification to ensure permanence.

Key Differences in a Nutshell

FeatureOffsettingRemovalWhat it doesPrevents or avoids emissions elsewherePulls CO₂ out of the atmosphereAddressesFuture/unavoidable emissionsPast and ongoing emissionsPermanenceRisk of reversal (e.g. fires)More stable if engineeredCost & maturityLower cost, more establishedHigher cost, emergingRole in net zeroCompensates unavoidable emissionsEssential for legacy emissions & negative emissions

Why We Need Both

To reach net zero—or even net negative—we need both strategies working together:

1. Reduce emissions first (cut fossil fuels, improve efficiency, switch to renewables).

2. Offset unavoidable emissions in hard-to-decarbonize sectors like aviation or shipping.

3. Remove historical emissions to lower the atmospheric CO₂ stockpile.

Choosing High-Quality Projects

If you’re considering offset or removal credits, check for:

• 📌 Additionality (the project depends on your support).

• 🕒 Permanence (how long will carbon stay stored?).

• 🏷️ Verification (independent third-party standards).

• 🔄 Leakage risks (avoiding unintended emissions elsewhere).

• 👁️ Transparency (clear reporting and data).

• 🌱 Co-benefits (supporting biodiversity, communities, water).

The Big Picture

• Limiting warming to 1.5–2°C requires not only cutting emissions drastically but also removing gigatonnes of CO₂ already in the atmosphere.

• Offsetting alone won’t get us there—removal is essential.

• A balanced approach ensures short-term progress and long-term climate stability.

Conclusion

Carbon offsetting and carbon removal are both powerful—but different—tools in the fight against climate change.

• Offsetting manages and compensates for current, unavoidable emissions.

• Removal helps undo past damage and secure a stable climate future.

A credible climate strategy will reduce first, offset responsibly, and scale up removals. Together, they create the roadmap to net zero.