What is Carbon Offsetting?

Carbon emissions offsetting is one of the main approaches the global energy community has taken to minimize its effect on the environment. Let’s explore what it is and how it has evolved through the years.

Definition of Carbon Offsetting

Everything we do releases CO2 into the atmosphere. Working, travelling, eating, and using the internet result in a certain footprint. Carbon footprint offsetting is what inverts this effect. It helps remove CO2 from the atmosphere.

You will encounter this term in the emissions trading definition, as it is one of the projects motivating companies to avoid unnecessary greenhouse gases in their operation. During the trading, they can buy CO2 offsets for every tonne of their footprint.

Development of the Term

To fully answer the question "What is carbon offsetting?", we should delve into the history of the term. In 1977, the US Clean Air Act established one of the front-running offset projects. At the time, companies received a chance to increase their emissions when other enterprises reduced theirs. In the 1990s, more early offsetting concepts were created.

In 1997, the Kyoto Protocol was established. The document that you will most likely see mentioned in the decarbonisation definition sets three main means for offset credit acquisition. The Clean Development Mechanism (CDM), in particular, focused on the most emitted greenhouse gases:

•     CO2;
•     methane;
•     N2O;
•     perfluorocarbons;
•     hydrofluorocarbons;
• sulfur hexafluoride.

The climate change topic persisted with the Paris Agreement. It encompasses the main points of environmental transformation and carbon offsetting methods, also found in the carbon capture and storage definition, through the Net Zero 2050 program.

DTEK's Involvement in Carbon Offsetting

You can’t explore the definition of carbon offsetting without establishing DTEK’s part in the movement. Between 2019 and 2023, the company’s technology helped avoid 880,000 tons of CO₂ emissions. In 2025, DTEK Renewables gave businesses a chance to offset their emissions by issuing carbon credits. This and much more is done to achieve CO2 neutrality by 2040.