Best carbon offset companies and projects

You're scrolling through your monthly performance reports, feeling good about your business. But then you see news about climate change-caused disasters. Ever wondered how your success impacts the planet? Or how much CO2 your car emits? If you did, perhaps it’s time to think of carbon offsetting programs to compensate for your emissions.

We’ve got good news for you. First: carbon offset companies help you do it right. Second: 

this works for everyone. Personal carbon offsetting reduces your own footprint and business carbon offset covers the emissions of your whole company. 

In this carbon offset guide, we’ll cover top carbon offset providers for your clear conscience (and steady growth).

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Why is the carbon offsetting market growing?

Let's face it: we all contribute to climate change, even if we don't mean to. Every time we turn on the lights, hop in the car, or turn up the heat, we're adding to our carbon footprint. It's easy to feel helpless, but that's where carbon offsetting steps in. Generally, there are two types of carbon offsets: personal and for businesses. 

Individual carbon footprint

You might be surprised by how much impact our daily lives have on the environment. Did you know that food alone makes up 10-30% of a household's carbon footprint? But it's not just what we eat — it's how we power our homes too. And when it comes to keeping ourselves comfortable, heating and cooling eat up 44% of the energy.

Now, let's talk about getting around. If you own a car, each mile you drive releases about 0.77 pounds of CO2 into the air. It adds up fast — cars and light trucks were responsible for over a billion metric tons of CO2 in 2021, or about 16% of total average greenhouse gas emissions.

Surprised by the stats of how much we’re emitting in our daily lives? Wait until we get to business carbon emissions.

With all said, taking part in carbon offset programs helps to neutralize our carbon footprint and contribute to a healthier planet. It's like a scale — if you add weight to one side, you need to add the same amount to the other to keep things balanced.

So, as promised, back to business-related emissions. Here’s where it’s getting wild. 

Business carbon footprint 

For those in the travel and tourism industry, the numbers are even more striking. This sector is responsible for about 8% of global carbon emissions. Let's break it down further. 

Hotels alone account for 1% of global emissions, with most of that coming from keeping the lights on and the air conditioning running. A single long-haul flight can generate more CO2 than some people produce in an entire year.

But here's the thing — the travel and tourism sector is also a major economic player. In 2019, it contributed 11% to global GDP, and this number is only growing. That means this industry has both the responsibility and the power to make a real difference.

And customers are taking notice. 73% of travelers say they want to see more sustainable options in the industry, so travel tech startups are increasingly stepping up with greener solutions. By investing in carbon offsetting and eco-oriented custom software development for travel industry, your business isn't just helping the planet — they're also tapping into a growing market of eco-conscious travelers.

Сarbon offsetting for businesses and individuals: let’s break it down

Carbon offset companies are the organizations you deal with directly. They're like the storefront. You go to their website, calculate your emissions, and buy your offsets to support environmental sustainability. Offset projects are the actual work you do (or pay others to do if you choose to do it online) to reduce or remove carbon from the atmosphere. This could be planting trees in Scotland, setting up solar panels in India, or capturing methane from a landfill in Brazil. 

What is the offset program meaning? Carbon offsetting programs help businesses balance their greenhouse gas emissions by investing in projects that reduce or remove carbon dioxide from the air. These are the overall systems providers set up to connect you with projects. A program might include how they calculate your emissions, which projects they choose to support, and how they verify the impact. It's the provider's whole approach to offsetting.

So in simple terms: providers run programs that fund projects. You interact with the provider and decide how to invest in carbon offsets. Your money goes into their program and supports specific projects globally. Businesses have several options for carbon offsetting. The first one belongs to the regulated market where it’s obligatory to purchase and report on carbon offsetting, and the other one is voluntary, where you decide to do it on your own.

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Best carbon offsetting programs for the US regulated market

Now that we figured it all out, let’s see what programs and providers are there for your individual or business needs, whether you’re in the US, UK, or EU. First, let’s see what options of regulated programs and providers there are for American companies.

California Cap-and-Trade program

The California Cap-and-Trade Program is a big player in the compliance market. Companies covered by this program use offsets for up to 4% of their emissions. The program sets a limit on greenhouse gas emissions for covered industries in the state. Permits are sold through regular auctions, generating revenue for the state.

The California Cap-and-Trade program offers a variety of investment opportunities:

• Energy efficiency projects, like upgrading equipment to use less energy, installing energy-efficient lighting, and improving building insulation.
• Renewable energy: you can invest in solar, wind, geothermal, and other energy sources.
• Clean transportation, like funding electric and hybrid vehicles, and public transportation.
• Technologies that capture carbon dioxide emissions and store them underground.
• Forestry projects, from planting trees and protecting forests to improving your forest management practices.

What about the cost? For example, a tech company in Silicon Valley might invest in a forestry project in Oregon to offset some of its emissions. The price is $0.01 per offset. Doesn’t seem too much for the definite impact.

Regional Greenhouse Gas Initiative

The Regional Greenhouse Gas Initiative (RGGI) is a big deal in the Northeast's carbon market. Power plants in 12 Eastern states can use offsets for up to 3.3% of their emissions. RGGI puts a cap on greenhouse gas emissions from power plants in the region. They track everything using their CO2 Allowance Tracking System (COATS).

You can invest in a variety of projects that reduce emissions, such as:

• Landfill methane capture. What is it? Collecting methane gas produced from decomposing waste in landfills.
• Reducing sulfur hexafluoride. Why is it a problem? It traps heat in the atmosphere for a very long time, contributing to climate change.
• Afforestation, or planting trees like in many other programs.
• End-use efficiency, or cutting waste and consumption.
• Avoided agricultural methane, especially livestock and rice paddies.

RGGI carbon project developers offer wide geographic opportunities. For instance, a power company in New York might invest in a project that captures methane from a landfill in Maine to offset some of its emissions. The offset cost would be 17.64$ per metric ton of carbon dioxide.

RGGI has been successful in reducing carbon dioxide emissions from the power sector. Between 2006-2008 and 2016-2018, emissions from RGGI electric generation sources decreased by 48%.

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Voluntary carbon offsetting market in the US

For companies not in these regulated markets, there's a vast voluntary market. Businesses can buy credits from all sorts of projects certified by groups like Verra or the American Carbon Registry, or Natural Capital Exchange. Let’s see these options in more detail.

Verra's Verified Carbon Standard 

Verra's Verified Carbon Standard (VCS) is a key player in the voluntary carbon market. They've issued over 984 million credits from 1,840 projects. The VCS program focuses on:

• Blue carbon: storing CO2 in coastal and marine environments.
• Carbon capture and storage: tech that's crucial for reaching net zero.
• Agriculture and forestry: using land to soak up more carbon.
• Energy transition: helping hard-to-change sectors go green.

Projects go through tough checks to get certified. Independent experts make sure everything's up to snuff. Once approved, projects can create Verified Carbon Units (VCUs). Each VCU stands for one ton of CO2 reduced or removed. These can be sold to fund more climate-friendly work. The cost of VCUs can vary widely, typically from $3 per ton of CO2 equivalent, depending on the project type and location.

Natural Capital Exchange

Another option is the Natural Capital Exchange (NCX). This platform uses AI and satellite imagery to create a forest carbon marketplace. NCX focuses on short-term harvest deferrals, offering a unique year-by-year approach to forest carbon projects. They cover 4.6 million acres of forest participating, and offer free participation and no land size limit.

Here are the types of programs that landowners can find on NCX:

• Tree planting programs: These programs pay landowners to have trees planted on their land.
• Recreational leasing programs: These programs allow landowners to lease their land for recreational activities such as hunting, fishing, and camping.
• Forest carbon programs: These programs pay landowners to defer timber harvests on their land.
• Solar farming programs: These programs allow landowners to lease their land for solar development.

NCX helps landowners find programs that are a good fit for their land and their goals. There are no fees or acreage minimums to use the NCX platform. The platform is user-friendly and allows landowners to easily compare different programs and see how much they could earn. This company shows how AI and climate change are not doom, but opposing things.

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Carbon offsetting in the European Union

As we shift our focus from the USA to the European Union and the United Kingdom, we see that both personal carbon offsetting and business carbon offset initiatives are gaining traction. 

Things work a bit differently in Europe. The EU Emissions Trading System (EU ETS) is the main carbon market in Europe, but it doesn't currently allow the use of external offset credits. Companies in the system have to reduce emissions directly or buy allowances within the market. However, many European businesses still participate in voluntary offsetting. How does it usually happen? Here are some carbon offsetting examples available.

Gold Standard verified carbon offsets

Gold Standard is one of the most reputable carbon offset companies. Founded in Switzerland, this program has issued 191 million credits across various project types, including renewable energy and waste management.

Here are some of the project types available:

• Renewable energy projects like the Akbuk Wind Farm Project, Buenos Aires Renewable Energy Project, Wind Energy Project in Gujarat.
• Improved cookstoves — distributing clean and efficient cookstoves to communities in developing countries. This improves air quality and health, especially for women and children who traditionally do the cooking. Among such projects are West Kisumu, Bangladesh, Qori Q’oncha, and Improved Cookstoves in Peru.
• Water projects — providing access to clean and safe drinking water for communities in Mozambique and Cambodia, as well as Uganda Gender Responsive Safe Water Project.
• Land use and nature-based solutions that projects protect forests, restore degraded land, and promote sustainable land management practices. Among them are Colombia WithOneSeed Community Forest Programme and The Nicaforest High Impact Reforestation Program.
• Biogas projects capture methane emissions from organic waste and convert it into clean energy for cooking and heating. Examples? Biogas for Better Life Uganda, Indonesia Biogas Programme, and Kenya Biogas Programme.

Gold Standard successfully partners with companies issuing carbon credits. EcoSafi, a clean cooking company in Africa, is the first to issue carbon credits under a strict Gold Standard method. As to the cost of carbon offsets per ton, for every one the company emits into the atmosphere, it sacrifices between $11 and $212.

Ecologi business carbon offset

‍Ecologi is making waves in the voluntary carbon market. Businesses in the UK and EU can easily offset their emissions and support tree planting through their platform. Ecologi offers a monthly subscription model, making it simple for companies to get involved. The platform supports a variety of climate projects worldwide, generating real impact. Ecologi also provides engaging visuals for businesses to show off their green efforts.

Ecologi's projects cover a wide range of climate solutions:

• Reforestation: Planting trees to soak up CO2 and restore forests.
• Habitat restoration: Bringing damaged ecosystems back to life, like wetlands and grasslands.
• Carbon avoidance: Stopping emissions before they happen, like preventing deforestation.
• Carbon removal: Sucking CO2 out of the air and locking it away long-term.
• Renewable energy: Funding clean power sources to replace fossil fuels.

How many trees to offset one person's carbon footprint? The number varies depending on factors like lifestyle and location. On average, it's estimated that planting 6-8 trees per year could offset a typical person's annual carbon emissions. 

This year, Ecologi is adjusting their carbon offset costs, with tree planting costs increasing ( global trees from £0.24 to £0.60 each) while carbon removal via biochar is decreasing from £325 to £270 per tonne.

The trend is clear: companies in the US and Europe are getting serious about mixing offsetting with cutting their own emissions. They're also picky about their offsets, often looking for projects that do more than just reduce carbon – like helping local communities or protecting wildlife.

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Carbon offset a business in the UK can afford

Since Brexit, the UK has its own Emissions Trading Scheme. Although it works similarly for the most part, they've got unique local programs as well. Here are the most efficient carbon offsetting companies we know.

Woodland Carbon Code offset solutions

The Woodland Carbon Code is a leading option in the UK's carbon market. It allows companies to plant trees to offset carbon emissions. This home-grown scheme lets businesses directly support new forests across the UK. The Code ensures accurate measurement of environmental impact, giving companies reliable carbon credits. Here's what makes the Code unique:

• Local impact: Companies support forests in their own backyard.
• Verified results: Rigorous standards ensure real carbon benefits.
• Flexibility: Businesses can choose between future potential or guaranteed offsets.‍
• UK-focused: Perfect for domestic emissions, but not for international ones.

The Woodland Carbon Code offers two main investment options. The first one is pending issuance units — future promises of carbon removal. These help companies plan ahead but can't be used for official UK emissions reporting yet. The second one, Woodland Carbon Units, are verified credits representing a tonne of CO2 absorbed. These can be used for UK emissions reports and net zero claims.

Pending Issuance Units are more readily available, while Woodland Carbon Units are pricier but pack a bigger punch. The cost of Woodland Carbon Code credits typically ranges from £15 to £20 per ton of CO2 equivalent.

Peatland Code

The Peatland Code program focuses on restoring peat bogs, nature's secret weapon for carbon storage. It might not be glamorous, but these muddy ecosystems pack a serious punch to fight climate change. Here's a quick look at the Peatland Code's impact across the UK:

• Scotland: Leading the charge with 141 projects covering 27,730 hectares
• England: 29 projects restoring 4,698 hectares of peatland
• Wales: 12 projects making a big impact on 1,221 hectares
• Northern Ireland: Just getting started with 2 projects covering 174 hectares

The Code gives investors confidence that their money is creating real, verified climate benefits.  This is achieved through independent verification. The cost of Peatland Code credits was £24 in 2022, current price is not disclosed.

Carbon Footprint Ltd

Carbon Footprint Ltd is a one-stop shop for businesses looking to tackle their emissions. This Hampshire-based company offers:

• Carbon footprint calculations to know where you stand
• Tree planting in the UK and abroad for offsetting
• Support for renewable energy projects worldwide

Their projects span the globe, from wind power in China to improved cookstoves in Uganda. Every project meets strict quality standards, ensuring real emission reductions.

Clear

Clear takes a modern approach to carbon management. Their user-friendly platform helps businesses measure, cut, and offset their carbon footprint. Clear's projects are as diverse as they are impactful. Here are some carbon offsets examples:

• Protecting the Amazon in Brazil
• Capturing industrial emissions in Egypt
• Distributing efficient cookstoves in Malawi
• Supporting small hydroelectric plants in Chile.

Clear also offers a wide range of offsetting projects to choose from and provides transparent reporting for businesses. Their easy-to-use online tools make your team onboarding and daily use pretty easy too. Clear’s carbon offsets price is fixed — £18.99 on subscription.

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Carbon offsetting programs for individuals in the US

Carbon offsetting is a way for regular people to balance out the carbon emissions they create in daily life. It's like paying to clean up your carbon mess. You figure out how much carbon you're responsible for, then spend some money on projects that prevent carbon emissions elsewhere. Again, let’s play with some geography and figure out what you can invest in. 

The United States offers a variety of carbon offset programs for individuals who want to take action against climate change. Here are some of the best options.

TerraPass

TerraPass is setting carbon offset standards in the US market. They offer both monthly subscriptions and one-time purchases to offset your emissions. This is another example of a carbon offset business that has clear costs for personal subscriptions: $7.49 per 1,000 lbs/month.

TerraPass funds a variety of projects:

• Wind farms in places like Oklahoma
• Forest conservation in California
• Landfill gas capture to reduce methane emissions
• Renewable energy projects including solar installations

TerraPass provides a carbon calculator to help you estimate your footprint. They focus on recent offsets, typically generated within the last five years. All their projects are verified by independent third parties by carbon reporting software to ensure quality. For example, a family in Seattle might buy TerraPass credits to offset their annual car usage, supporting a wind farm in Texas. 

Cool Effect 

Cool Effect takes a different approach, letting you choose specific projects to back. Their website showcases a range of offset options:

• Protecting rainforests in Peru
• Helping farmers in India reduce fertilizer use
• Installing clean cookstoves in Uganda
• Building solar farms in China
• Restoring grasslands in Colorado

Projects vary in price, usually between $3.50 to $14 of CO2 offset. Wind and solar tend to be cheaper, while forestry and cookstove projects are often pricier. Cool Effect ensures all projects meet strict quality standards. A college student might offset their semester abroad flights by funding a clean water project in Rwanda through Cool Effect.

Carbonfund.org

Carbonfund.org offers a flexible way to tackle your carbon footprint. You can offset specific parts of your life, like home energy use, that flight to visit family in Florida, your daily commute to work, or even your wedding. 

They work with you to measure and offset various impacts:

• Overall carbon footprint
• Plastic waste
• Shipping and travel emissions
• Product lifecycles

Carbonfund.org partners with projects worldwide, from reforestation in the Amazon to methane capture at US dairy farms. The cost is flat and fixed no matter what project you’re involved in: $10 per metric ton of CO2 emissions.

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Carbon offset programs in the EU and UK

Europeans and Brits have access to several reputable carbon offset programs. Here are some of the top carbon offset companies UK and EU residents can use.

Atmosfair

Over in Europe, Atmosfair is a big player. It's a German non-profit that's really focused on offsetting flights, but you can also balance out your whole carbon footprint with them. Project types include wind power, solar power, landfill gas capture, grassland restoration, and improved cookstove distribution.

Geographic areas include China, India, Rwanda, Uganda, Dominican Republic, Burkina Faso, and Zambia. All projects meet quality assurance standards and contribute to emission reductions or removals. Atmosfair's carbon offsets typically cost €30 per ton of CO2 equivalent.

MyClimate

Myclimate is a Swiss organization that helps reduce carbon emissions. They offer domestic climate protection projects, and also run international ones. Overall, they removed 16.38 million tonnes of carbon dioxide from the atmosphere so far. Myclimate works on projects under the Paris Agreement (Compliance Carbon Market) and offers Carbon Insetting services:

• Forest restoration in Germany
• Efficient cookstoves in India
• Wetland restoration in Germany
• Land restoration in Ethiopia
• Climate-friendly rice farming in India
• Renewable energy projects in Switzerland

Myclimate's projects help protect the environment and improve people's lives. They are committed to quality and transparency. Their projects contribute to the United Nations' goals. 

Carbon Neutral Britain

In the UK, Carbon Neutral Britain is gaining traction. They offer a monthly subscription where you can offset more than the average Brit's carbon footprint and plant some trees while you're at it. They prioritize projects with the biggest impact and adhere to the highest standards (Verified Carbon Standard (VCS), Gold Standard (VER), Certified Emission Reductions (CER))

They support a variety of projects globally, including renewable energy (wind, solar, hydro), nature-based solutions (tree planting, forest restoration), and efficiency improvements (cooking stoves). The company also provides independent project validation and assurance.

The program lets you offset 1.25 tonnes of CO2e and plant 20 trees and costs £6.99 monthly.

Make It Wild

Make It Wild brings a personal touch to carbon offsetting in the UK. They're all about planting trees to soak up CO2 and give nature a boost. Make it Wild keeps it flexible with packages for both individuals and businesses. It's hands-on conservation:

• For £40, you can plant a tree in someone's name. It's like a green gift that keeps on giving.
• You can also sponsor an apple or pear tree in Norfolk or North Yorkshire. Prices range from £22.50 to £67.50, depending on the type. 
• Got £250 to spare? You can dedicate grand old trees that have been around for ages. Mangrove planting in Kenya costs from £25 to £112.50 and gets you involved in mangrove restoration, depending on how many trees you want to plant.

How does it work? You decide how much carbon you want to offset, and they'll help you figure out how many trees that translates to.

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How to invest in carbon offsets right?

In conclusion, carbon offsetting is complex but important for individuals and businesses looking to reduce their environmental impact. Whether you're in the US, UK, or EU, there are numerous carbon offset services available to help you balance your carbon footprint. These range from supporting renewable energy projects to funding reforestation efforts. 

It's important to remember that not all offsets are the same. Carbon offset verification is extremely important to ensure the effectiveness of these programs. Also, while carbon offset costs can vary, from a few dollars to over $200 per ton of CO2, the investment is worthwhile for its environmental impact. 

For those new to offsetting, carbon offset consultants provide valuable guidance in navigating the various options and finding the best fit for your needs. The key is to start somewhere. By taking action today, we can all contribute to a more sustainable future, one offset at a time.

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FAQ

What's personal carbon offsetting?

It's like cleaning up after yourself, but for carbon. You figure out how much carbon you're responsible for and then support projects that reduce or remove that amount from the atmosphere.

How does business carbon offsetting work?

Same idea as personal offsetting, but on a bigger scale. Companies calculate their carbon footprint and invest in projects to balance it out. It's good for the planet and often good for business too.

What are some carbon offset examples?

Planting trees, funding renewable energy projects, or supporting efficient cookstove distribution in developing countries. There's a whole range of cool projects out there.

How many trees do I need to plant to offset my carbon?

On average, about 6-8 trees per year could offset a typical person's annual emissions. But remember, it's not just about trees — there are many ways to offset.

What's the cost of carbon offsets per ton?

A: It varies widely, from a few dollars to over $200 per ton. Cheaper isn't always better — look for quality and impact, not just price.