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Carbon Offsetting

D6. Decarbonization, emissions and alternative fuels

Definition

Use of credits to compensate for emissions.

Carbon offsetting compensates for an emission by buying credits, each nominally one tonne CO2e, from a project that reduces, avoids, or removes emissions elsewhere. Credits issue under standards such as the Verified Carbon Standard or Gold Standard, or under the Paris Agreement Article 6 framework. A credible offset must prove additionality, a measurable baseline, permanence, and no leakage, and avoid double counting. In shipping, offsetting sits outside the IMO compliance instruments: CII, EEDI, and the agreed Net-Zero Framework count emissions at the ship, so a voluntary offset does not change an attained CII rating.

Source: Paris Agreement Article 6; Verified Carbon Standard