Carbon offsetting means compensating for greenhouse gas emissions you can't yet avoid, by funding projects that reduce or remove CO₂ elsewhere, such as reforestation, renewable energy, or methane capture. It's a tool some people and companies use alongside cutting emissions at the source.

How carbon offsets work

Projects are measured against verified standards (like Gold Standard or Verra). One carbon credit typically represents one tonne of CO₂ equivalent reduced or removed. Buyers purchase credits to balance a calculated footprint from flights, energy use, or business operations.

Quality varies. Permanent, additional, and independently verified projects matter more than cheap credits with weak accountability.

Offsets vs reduction

Experts agree: reduce emissions first, travel less, use efficient energy, choose lower-carbon products. Offsets are a supplement, not a free pass to ignore impact. bunq supports direct environmental action too, like automatic tree planting on spending, see sustainability at bunq.

Carbon offsetting in personal finance

Some services offer offsets at checkout for flights or deliveries. If you use them, research the provider's standards. Pair offsets with ethical investing and banking choices that don't finance high-carbon industries.

Frequently asked questions

Do carbon offsets really work?

Well-run projects can deliver real benefits. Poor projects overstate impact. Due diligence on certification and transparency is essential.

How is bunq different from buying offsets?

bunq plants trees based on your spending through built-in sustainability features, a tangible action integrated into everyday banking, not a separate credit purchase.

Are offsets tax-deductible?

Rules vary by country and whether offsets are personal or business expenses. Consult a tax advisor locally.