What is carbon offsetting and what are carbon credits?

Carbon offsetting is a method to offset or counter damage done to the environment, accelerating global warming. Specifically, this is damage caused by greenhouse gas or carbon emissions. Every unit (usually measured in tonnes) of carbon dioxide (CO2) from activities that include driving, flying airplanes or heating is negated by a unit of carbon removed elsewhere.

A price is set on the harmful carbon emissions, and this depends on the quantity of emissions. It is basically set to cover the cost of environmentally-friendly schemes usually based in poorer countries. The schemes can range from recycling programmes, tree planting, solar energy stations to wind farms. The Kyoto protocol lists a number of these schemes.

Carbon offsetting schemes are unregulated at the moment, although the government is going to soon launch a quality standard for carbon offsetting projects. This should allow greater transparency so that people can see exactly where their money is being spent.

For example let's take flying, one of the most carbon-hungry activities. A return flight from London to New Zealand could cost around £40.

Offsetting is generally regarded to be a small measure to help a very large problem. We all need to significantly reduce the amount of carbon emissions at home and work. Mitigating our excess carbon by spending money to invest in environmental programmes will not make a major impact on its own.