A Carbon Offset is a reduction or removal of emissions of carbon dioxide or other greenhouse gases made in order to compensate for emissions made elsewhere. When one company removes a unit of carbon from the atmosphere as part of their normal business activity, they can generate Carbon Offsets, other companies can then purchase these Carbon Offsets to reduce their own carbon footprint.

Carbon Offsets are measured in tonnes of carbon dioxide equivalent (CO2e). One ton of carbon offset represents the reduction or removal of one ton of carbon dioxide or its equivalent in other greenhouse gases. Carbon markets are approaching a Trillion Dollar valuation and since demand is predicted to increase the market is expected continue to grow.