
Carbon offsetting entails aligning a company's carbon emissions with an equivalent removal of carbon from the atmosphere. In principle, this approach is sound. In fact, carbon removal is the essential concluding phase of a company's pursuit of net zero emissions. Nonetheless, in practice, the term "carbon offsetting" has become linked with subpar practices that often prove less effective than what companies expect when they engage in these activities. This situation can inadvertently result in "greenwashing," where companies only partially compensate for their carbon footprint.