Carbon Offsetting
D6. Decarbonization, emissions and alternative fuelsDefinition
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