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ARTICLE · 27 JUNE 2023

Nature-Based Carbon Offsets—Race To Quality?

Over the last decade, carbon offsets have gained popularity within the retail and consumer products industry as a voluntary tool to mitigate their Scope 1, 2, and 3...

United StatesEnvironment

Over the last decade, carbon offsets have gained popularity within the retail and consumer products industry as a voluntary tool to mitigate their Scope 1, 2, and 3 greenhouse gas (GHG) emissions. The quality and type of offsets play a critical role, however, in the credibility of a GHG emissions reduction claim. Lately, the environmental and sustainability communities have sent mixed messages on the efficacy of nature-based carbon offsets.

Removal and Avoidance Offsets

Carbon offsets come in two basic forms—removal and avoidance. Removal offsets are generated by activities that take carbon out of the atmosphere, and can be nature-based (e.g., tree growth and algae) or technology-based (e.g., point source carbon capture and sequestration). Avoidance offsets, on the other hand, are voluntary actions that prevent carbon emissions from entering the atmosphere in the first place. Some avoidance activities that produce carbon offsets can be nature-based, including

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