Regreener defines carbon offsets and credits, notes EU ban on 'carbon neutral' claims
A carbon offset represents a reduction or removal of one tonne of CO2 equivalent (tCO2e) by an external project, used to compensate for a company's own emissions. The offset is realised only when a verified carbon credit is retired in a public registry under the company's name. Offsetting does not reduce a company's direct footprint, leading frameworks like SBTi to treat it as action beyond reduction targets. From 27 September 2026, EU consumer law will prohibit product claims such as 'carbon neutral' that rely on offsets.
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