As businesses and organisations take responsibility for their greenhouse gas emissions, carbon offsetting has become an essential tool in the climate action toolbox. By supporting projects that reduce, remove, or avoid emissions, companies can address the footprint they haven’t yet been able to eliminate.
But not all carbon offsets are created equal. Understanding the types of offset projects, and their relative strengths, is key to making credible, high-integrity choices that align with your climate goals.
Here’s a breakdown of the main categories of offset projects, what they do, and how they contribute to net zero.
1. Avoidance projects
Avoidance projects prevent emissions that would have otherwise occurred. They don’t remove carbon from the atmosphere, but they stop new emissions from being added. These projects are often the most cost-effective and scalable, especially in developing regions.
Examples:
- Renewable energy: Replacing coal or gas with wind, solar, or hydropower in emerging markets.
- Clean cookstoves: Distributing efficient stoves that use less fuel and produce less smoke.
- Methane capture: Preventing methane leaks from landfills, agriculture, or oil and gas infrastructure.
2. Reduction projects
These projects lower current emissions at the source by improving efficiency or changing processes. Though similar to avoidance, reduction projects often focus more on operational changes that decrease carbon intensity.
Examples:
- Energy efficiency: Upgrading buildings or industrial systems to consume less energy.
- Waste management: Using advanced technologies to reduce emissions from waste treatment and industrial byproducts.
3. Removal projects
These projects extract CO₂ directly from the atmosphere and store it, either biologically or technologically, for long periods. Removals are essential for offsetting residual emissions in a net-zero future.
Examples:
- Afforestation and Reforestation (ARR): Planting new forests or restoring degraded ones.
- Soil Carbon Sequestration: Farming techniques that increase carbon stored in soils.
- Direct Air Capture (DAC): Using machines to pull carbon from the air and inject it into geological formations or incorporate into long-lasting materials.
4. REDD+ Projects (Reducing Emissions from Deforestation and Degradation)
REDD+ projects protect existing forests from destruction, preserving carbon stocks and biodiversity. These projects also support sustainable land management and local community livelihoods.
Key benefits:
- Prevent deforestation in high-risk regions
- Promote sustainable agriculture and forestry practices
- Generate co-benefits like habitat conservation and water protection
5. Blue carbon projects
These focus on coastal and marine ecosystems, which are often even more effective at storing carbon than terrestrial forests. Blue carbon projects also build climate resilience for coastal communities and protect biodiversity.
Examples:
- Mangrove restoration
- Seagrass meadow protection
- Wetland conservation
6. Biodiversity and co-benefit projects
While not a standalone carbon category, many offset projects deliver important co-benefits:
- Protecting endangered species and habitats
- Improving water quality and watershed health
- Empowering local and Indigenous communities
Such projects enhance the credibility and impact of your climate contributions – ensuring they go beyond carbon and contribute to a thriving planet.
Choosing the right offset strategy
High-quality offsetting is about more than tonnes of CO₂. It’s about integrity, transparency, and long-term impact.
When evaluating projects, consider:
- Permanence: Will the carbon stay out of the atmosphere long-term?
- Additionality: Would the project have happened without your funding?
- Verification: Is it certified by reputable standards like Puro or Gold Standard?
- Alignment: Does it support your broader sustainability strategy?
How Atmoz Restore can help
At Atmoz, we connect companies with credible, science-aligned carbon offsetting opportunities – from nature-based solutions to frontier removal technologies. Our Restore platform curates projects with verified impact, strong co-benefits, and climate finance transparency.
We help you build a portfolio that not only offsets emissions but also advances your climate leadership. Explore our project library or talk to us about tailored offset strategies aligned with your decarbonisation goals.
