{"id":23450,"date":"2025-12-15T16:07:44","date_gmt":"2025-12-15T16:07:44","guid":{"rendered":"https:\/\/chariotenergy.com\/chariot-university\/what-are-carbon-offsets\/"},"modified":"2025-12-16T21:30:06","modified_gmt":"2025-12-16T21:30:06","slug":"what-are-carbon-offsets","status":"publish","type":"page","link":"https:\/\/chariotenergy.com\/chariot-university\/what-are-carbon-offsets\/","title":{"rendered":"What are Carbon Offsets? How to Reduce Your Carbon Footprint"},"content":{"rendered":"<style>\n.chariot-article {\n  max-width: 800px;\n  margin: 0 auto;\n  padding: 40px;\n  font-family: -apple-system, BlinkMacSystemFont, \"Segoe UI\", Roboto, Oxygen, Ubuntu, sans-serif;\n  font-size: 18px;\n  line-height: 1.8;\n  color: #333;\n}\n.chariot-article h1 {\n  font-size: 2.5em;\n  font-weight: 700;\n  line-height: 1.2;\n  margin: 0 0 30px 0;\n  color: #1a1a1a;\n}\n.chariot-article h2 {\n  font-size: 1.8em;\n  font-weight: 600;\n  line-height: 1.3;\n  margin: 50px 0 20px 0;\n  color: #1a1a1a;\n  border-bottom: 2px solid #f7931e;\n  padding-bottom: 10px;\n}\n.chariot-article h3 {\n  font-size: 1.4em;\n  font-weight: 600;\n  line-height: 1.4;\n  margin: 40px 0 15px 0;\n  color: #333;\n}\n.chariot-article h4 {\n  font-size: 1.2em;\n  font-weight: 600;\n  margin: 30px 0 10px 0;\n  color: #444;\n}\n.chariot-article p {\n  margin: 0 0 20px 0;\n}\n.chariot-article img {\n  max-width: 100%;\n  height: auto;\n  border-radius: 8px;\n  margin: 30px 0;\n  display: block;\n}\n.chariot-article figure {\n  margin: 30px 0;\n}\n.chariot-article figcaption {\n  font-size: 0.9em;\n  color: #666;\n  text-align: center;\n  margin-top: 10px;\n  font-style: italic;\n}\n.chariot-article ul, .chariot-article ol {\n  margin: 20px 0 20px 30px;\n  padding: 0;\n}\n.chariot-article li {\n  margin-bottom: 12px;\n  line-height: 1.6;\n}\n.chariot-article a {\n  color: #f7931e;\n  text-decoration: none;\n  border-bottom: 1px solid transparent;\n  transition: border-color 0.2s;\n}\n.chariot-article a:hover {\n  border-bottom-color: #f7931e;\n}\n.chariot-article blockquote {\n  border-left: 4px solid #f7931e;\n  margin: 30px 0;\n  padding: 20px 30px;\n  background: #f9f9f9;\n  font-style: italic;\n  color: #555;\n}\n.chariot-article strong {\n  font-weight: 600;\n  color: #1a1a1a;\n}\n.chariot-article em {\n  font-style: italic;\n}\n.chariot-article hr {\n  border: none;\n  border-top: 1px solid #e0e0e0;\n  margin: 40px 0;\n}\n.chariot-article table {\n  width: 100%;\n  border-collapse: collapse;\n  margin: 30px 0;\n}\n.chariot-article th, .chariot-article td {\n  padding: 12px 15px;\n  text-align: left;\n  border-bottom: 1px solid #e0e0e0;\n}\n.chariot-article th {\n  background: #f5f5f5;\n  font-weight: 600;\n}\n@media (max-width: 768px) {\n  .chariot-article {\n    padding: 20px;\n    font-size: 16px;\n  }\n  .chariot-article h1 { font-size: 2em; }\n  .chariot-article h2 { font-size: 1.5em; }\n  .chariot-article h3 { font-size: 1.25em; }\n}\n<\/style>\n<div class=\"chariot-article\">\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img fetchpriority=\"high\" alt=\"Father and son planting a tree\" class=\"wp-image-1399\" decoding=\"async\" fetchpriority=\"high\" height=\"1281\" src=\"https:\/\/chariotenergy.com\/wp-content\/uploads\/2025\/12\/carbon-offsets-1-1.jpg\" width=\"1920\" title=\"\"><figcaption class=\"wp-element-caption\">Planting trees is a great way to offset your carbon footprint.<\/figcaption><\/img><\/figure>\n<\/div>\n<p>Many of our daily activities, including cooking, driving to work and even shopping for clothes, either produce or represent a specific amount of <a aria-label=\"greenhouse gas (GHG) emissions (opens in a new tab)\" href=\"https:\/\/chariotenergy.com\/chariot-university\/greenhouse-gases\/\" rel=\"noreferrer noopener\" target=\"_blank\">greenhouse gas (GHG) emissions<\/a>. This is known as your carbon footprint \u2014 and everyone has one! So, if you want to be more eco-friendly, it\u2019s important to understand how to reduce yours. <\/p>\n<p>Thankfully, you can do your part to reduce your impact on the environment in a variety of ways. One of the most well-known methods is carbon offsets, which are actions, projects or activities that reduce the amount of carbon dioxide and other greenhouse gases in the atmosphere by trapping them in the ground or elsewhere. While you often hear about big corporations buying carbon offsets or declaring themselves to be \u201ccarbon neutral,\u201d in reality, individuals can also invest in carbon offset projects to counteract their emissions-producing activities. <\/p>\n<p>We want to have a more in-depth discussion about what carbon offsets actually are, how they relate to your carbon footprint and the options you have to reduce your personal impact on the planet today. <\/p>\n<h2 class=\"wp-block-heading\">What is Your Carbon Footprint?<\/h2>\n<p>While we briefly touched on it above, <a href=\"https:\/\/chariotenergy.com\/chariot-university\/carbon-footprint\/\">your carbon footprint<\/a> is much more complex than just calculating the amount of carbon dioxide (CO2) produced by your car or the gas you use to cook. Your carbon footprint is the sum of all the greenhouse gas emissions generated by your actions and lifestyle decisions. Yes, CO2 is a greenhouse gas, but there are several other harmful greenhouse gases produced by human activity, including methane, nitrous oxide and fluorinated gases. These gases trap heat from <a href=\"https:\/\/chariotenergy.com\/chariot-university\/what-is-solar-energy\/\">solar energy<\/a> and prevent it from leaving the atmosphere. <\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img alt=\"Infographic on the greenhouse effect\" class=\"wp-image-1400\" decoding=\"async\" height=\"738\" src=\"https:\/\/chariotenergy.com\/wp-content\/uploads\/2025\/12\/ghg_earth.png\" width=\"1200\" title=\"\"><figcaption class=\"wp-element-caption\"> Source: Adapted from U.S. Environmental Protection Agency\u00a0<\/figcaption><\/img><\/figure>\n<\/div>\n<p>Here are some of the most common activities and life choices that comprise your carbon footprint: <\/p>\n<ul class=\"wp-block-list\">\n<li><strong>Your energy usage: <\/strong>Unless it\u2019s renewable, the electricity you consume in your home is generated by burning coal or natural gas, both of which are fossil fuels.<\/li>\n<li><strong>Your diet: <\/strong>According to the EPA, 9% of all greenhouse gas emissions come from agriculture such as cows, agricultural soils and rice production.<sup>1<\/sup><\/li>\n<li><strong>Your travel: <\/strong>A whopping 29% of all greenhouse gas emissions produced by humans can be attributed to transportation. This includes the burning of petroleum used to power the cars, trucks, ships, trains and planes that get us and our goods from one place to another.<sup>1<\/sup><\/li>\n<li><strong>Your clothing:<\/strong> The next time you buy a shirt, remember its carbon footprint, as the fashion industry accounts for approximately 10% of all carbon emissions.<sup>2<\/sup><\/li>\n<\/ul>\n<p>The EPA offers an effective <a aria-label=\"carbon footprint calculator (opens in a new tab)\" href=\"https:\/\/www3.epa.gov\/carbon-footprint-calculator\/\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">carbon footprint calculator<\/a> to help you start the process in your own life. It factors in your home\u2019s energy usage, your transportation choices and your waste habits. If you\u2019re looking for a more in-depth analysis, The Nature Conservancy\u2019s <a aria-label=\"carbon calculator (opens in a new tab)\" href=\"https:\/\/www.nature.org\/en-us\/get-involved\/how-to-help\/carbon-footprint-calculator\/?redirect=https-301\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">carbon calculator<\/a> considers how much you spend on clothes and even how much meat and dairy you eat. <\/p>\n<p>Now that you know what makes up your carbon footprint, let\u2019s talk about how you can reduce or neutralize it by purchasing carbon offsets.<\/p>\n<h2 class=\"wp-block-heading\">How are Carbon Offsets Generated?<\/h2>\n<p>To generate a carbon offset, you must invest in a specific activity that captures, destroys or stores GHGs that would otherwise be emitted into the atmosphere. This allows you to claim a certain amount of your pollution has been sequestered or neutralized. Organizations such as <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.goldstandard.org\/\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">The Gold Standard<\/a> or <a aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.green-e.org\/certified-resources\/carbon-offsets\" rel=\"noreferrer noopener nofollow\" target=\"_blank\">Green-e Climate<\/a> can certify that your dollars truly fund a real, permanent, measurable and verified carbon reduction project.<\/p>\n<p>A few examples of the projects recognized by Green-e include:<sup>3<\/sup><\/p>\n<ul class=\"wp-block-list\">\n<li>Capturing methane gas emissions from<br \/>landfills, coal mines and livestock<\/li>\n<li>Improving forest management<\/li>\n<li>Organic waste digestion and composting<\/li>\n<li>Investing in renewable energy projects<\/li>\n<\/ul>\n<figure class=\"wp-block-image\"><img alt=\"Two brown and white cows\" class=\"wp-image-1401\" decoding=\"async\" height=\"1281\" src=\"https:\/\/chariotenergy.com\/wp-content\/uploads\/2025\/12\/carbon-offsets-3.jpg\" width=\"1920\" title=\"\"><figcaption class=\"wp-element-caption\">In 2017, 9%  of all greenhouse gas emissions generated in the U.S. came from agriculture such as cows, agricultural soils, and rice production, according to the EPA.<\/figcaption><\/img><\/figure>\n<div aria-hidden=\"true\" class=\"wp-block-spacer\" style=\"height:30px\"><\/div>\n<h2 class=\"wp-block-heading\">How Do Carbon Offsets Work?<\/h2>\n<p>Here\u2019s an easy metaphor for carbon offsets: You go outside and plant enough trees to completely counterbalance your gasoline usage. With real carbon offsets, though, rather than you planting the trees, you\u2019re paying for someone else to plant them on your behalf. The idea is simple \u2014 while you aren\u2019t physically doing the act of reducing emissions, you\u2019re nevertheless investing in the wellbeing of the planet by funding projects that reduce these not-so-good gases.<\/p>\n<p>Carbon offsets are measured in tonnes of CO<sub>2<\/sub> or the equivalent amount of another greenhouse gas that would have the same environmental impact as that amount of carbon.<sup>4\u00a0 <\/sup>However, it\u2019s difficult to put a blanket price on offsets for a variety of reasons:<\/p>\n<ul class=\"wp-block-list\">\n<li>There\u2019s no set price on greenhouse gases<\/li>\n<li>Each project varies in cost <\/li>\n<li>Each project sequesters a different<br \/>amount of GHGs<\/li>\n<\/ul>\n<p> Generally, though, carbon offsets are a fairly cheap commodity. An individual can become carbon neutral for less than $100 a year.<sup>5<\/sup> Since the emissions profile for a business is on a different scale, it could range from hundreds to thousands of dollars, depending on how clean or dirty their footprint is. <\/p>\n<h3 class=\"wp-block-heading\">What\u2019s the Difference Between Renewable Energy Certificates (RECs) and Carbon Offsets?<\/h3>\n<p>We talked a lot about carbon offsets, but that\u2019s just one way you can become more environmentally friendly. <a href=\"https:\/\/chariotenergy.com\/chariot-university\/renewable-energy-credits\/\">Renewable Energy Certificates<\/a>, otherwise known as RECs, are the currency of the renewable energy industry, and they can also reduce your carbon footprint. <\/p>\n<p>RECs and offsets are very similar, which is why it can be difficult to understand their differences. It all comes down to what kind of emissions we\u2019re talking about:<\/p>\n<ul class=\"wp-block-list\">\n<li><strong>RECs<\/strong> address the emissions produced from<br \/>generating electricity. These emissions are known as scope 2 emissions. RECs<br \/>\u201cavoid\u201d greenhouse gas emissions, since renewable energy produces no emissions<br \/>in the first place.<sup>4<\/sup><\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li><strong>Offsets <\/strong>address the emissions already generated<br \/>from an individual or business. These neutralize all forms of emissions \u2014 scope<br \/>1, scope 2 and scope 3 \u2014 as a net adjustment <em>after<\/em> the emissions have already been produced and sequestered.<sup>4<\/sup><\/li>\n<\/ul>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img alt=\"Wind turbine\" class=\"wp-image-1372\" decoding=\"async\" src=\"https:\/\/chariotenergy.com\/wp-content\/uploads\/2025\/12\/Canva-White-Windmill-scaled.jpg\" title=\"\"><figcaption class=\"wp-element-caption\">RECs generated from wind power is a great way to offset your scope 2 emissions.<\/figcaption><\/img><\/figure>\n<\/div>\n<h4 class=\"wp-block-heading\">Are Carbon Offsets Worth it?<\/h4>\n<p>Short answer: Yes. <\/p>\n<p>Long answer: Both RECs and carbon offsets seek emission reductions. However, their reasons for existence are fundamentally different. RECs give life to the renewable energy industry, as they validate all <a href=\"https:\/\/chariotenergy.com\/chariot-university\/renewable-energy-sources\/\">renewable energy<\/a> produced ever. Carbon offsets address the emissions that have already been generated by putting them back into the ground, storing them in trees or removing them from the atmosphere. <\/p>\n<p>If you\u2019re still confused, we like this explanation from the EPA:<\/p>\n<p><em>\u201cThink of offsets and RECs as two tools in your sustainability toolbox \u2013 like a hammer and a saw. They are not interchangeable. Each tool is used in building a house, but each is used to accomplish specific tasks. One is not more important or better than the other.\u201d <\/em><sup>4<\/sup><\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img alt=\"sun shining on solar panels\" class=\"wp-image-1373\" decoding=\"async\" src=\"https:\/\/chariotenergy.com\/wp-content\/uploads\/2025\/12\/Canva-null-scaled.jpg\" title=\"\"><figcaption class=\"wp-element-caption\">In addition to carbon offsets, Solar Renewable Energy Credits (SRECs) generated from solar power are a vital part of your sustainability toolbox.<\/figcaption><\/img><\/figure>\n<\/div>\n<h4 class=\"wp-block-heading\">Carbon Offsets are Part of the Answer to Climate Change<\/h4>\n<p>In sustainability circles, you often hear the phrase, \u201cThere\u2019s no silver bullet to solve climate change.\u201d  This is industry jargon for the idea that there\u2019s no one path for preventing global warming and catastrophic climate change. All paths are correct, and they all work to prevent this crisis from getting worse than it already is.<\/p>\n<p>In 2018, the Intergovernmental Panel on Climate Change (IPCC) issues a report that we have until 2030 to reduce our dependence on fossil fuels if we want to keep our planet\u2019s global warming under 1.5 degrees Celsius.<sup>7<\/sup> In order to prevent this, Earth\u2019s leading scientists warn that we must change how we manage land, produce food, dispose of food and simply eat less meat if we want to halt the climate crisis. As a retail electricity provider, this means we must also be more energy efficient and show our customers how to do the same.<\/p>\n<p>This is why carbon offsets and RECs are so important. While they are only two pieces of the giant puzzle that can halt climate change, each piece must work together and do its part. This includes you and all of us at Chariot Energy. <\/p>\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n<p><strong>Sources<\/strong>: <\/p>\n<ol class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.epa.gov\/ghgemissions\/sources-greenhouse-gas-emissions\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.epa.gov\/ghgemissions\/sources-greenhouse-gas-emissions <\/a><\/li>\n<li><a data-id=\"https:\/\/unece.org\/info\/media\/presscurrent-press-h\/forestry-and-timber\/2018\/un-alliance-aims-to-put-fashion-on-path-to-sustainability\/doc.html\" data-type=\"URL\" href=\"https:\/\/unece.org\/info\/media\/presscurrent-press-h\/forestry-and-timber\/2018\/un-alliance-aims-to-put-fashion-on-path-to-sustainability\/doc.html\" rel=\"nofollow noopener\" target=\"_blank\">http:\/\/2. https:\/\/www.unece.org\/info\/media\/presscurrent-press-h\/forestry-and-timber\/2018\/un-alliance-aims-to-put-fashion-on-path-to-sustainability\/doc.html <\/a><\/li>\n<li><a href=\"https:\/\/www.green-e.org\/certified-resources\/carbon-offsets \" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.green-e.org\/certified-resources\/carbon-offsets <\/a><\/li>\n<li><a href=\"https:\/\/www.epa.gov\/sites\/production\/files\/2018-03\/documents\/gpp_guide_recs_offsets.pdf\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.epa.gov\/sites\/production\/files\/2018-03\/documents\/gpp_guide_recs_offsets.pdf<\/a><\/li>\n<li><a href=\"https:\/\/www.energysage.com\/other-clean-options\/carbon-offsets\/costs-and-benefits-carbon-offsets\/\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.energysage.com\/other-clean-options\/carbon-offsets\/costs-and-benefits-carbon-offsets\/<\/a><\/li>\n<li><a href=\"https:\/\/www.ipcc.ch\/sr15\/\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/www.ipcc.ch\/sr15\/ <\/a><\/li>\n<li><a href=\"https:\/\/marketbusinessnews.com\/what-is-the-greenhouse-effect\/\" rel=\"nofollow noopener\" target=\"_blank\">https:\/\/marketbusinessnews.com\/what-is-the-greenhouse-effect\/<\/a><\/li>\n<\/ol>\n<div class=\"clear\"><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Learn how carbon offset projects reduce the greenhouse gas emissions generated by your everyday activities and life choices.<\/p>\n","protected":false},"author":5,"featured_media":23549,"parent":627,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"class_list":["post-23450","page","type-page","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages\/23450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/comments?post=23450"}],"version-history":[{"count":0,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages\/23450\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/pages\/627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/media\/23549"}],"wp:attachment":[{"href":"https:\/\/chariotenergy.com\/wp-json\/wp\/v2\/media?parent=23450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}