The transition to climate neutrality involves the use of carbon offset mechanisms in addition to direct emission reductions. These are integrated into the environmental strategies of the European Union and of companies operating in Member States.

Definition in European law

The term carbon offset refers to measures or projects that reduce, capture or avoid CO₂e emissions. Offset is the action itself, while carbon credit designates the certified unit generated by this action (a certified unit representing the removal, reduction, or avoidance of one metric tonne of CO₂ equivalent (CO₂e)According to the European Commission, offsetting emissions involves financing an equivalent reduction elsewhere to offset emissions that cannot be reduced directly (COM(2021) 800 final, Communication on Sustainable Carbon CyclesEU law defines carbon offset as an action for compensation, and carbon credit as the certified result of that action, officially usable to demonstrate emission reductions in climate accounting.

Carbon offsets are therefore verified actions that help reduce global emissions and complement climate strategies by offsetting emissions that cannot be directly eliminated. By supporting certified projects, companies support both climate goals and the sustainable development of the communities involved.

Examples of good practice in the European Union

One certified forestry project is LIFE Terra, coordinated by Life Terra Foundation funded by the European Commission's LIFE programme. The aim of the project is to plant 500 million trees by 2025 in countries such as Spain, Portugal, the Netherlands, Germany and Greece. LIFE Terra uses methodologies recognised by international Gold Standard and Verra standards to guarantee the quality and traceability of the offsets generated. Detailed information is available on the official website https://www.lifeterra.eu.

Another example is the landfill methane capture project Pohlsche Heide, Germany, implemented by the Minden-Lübbecke district waste management authority. The operator has installed systems for the collection and energy utilisation of methane, generating electricity and obtaining CERs certifications under the CDM. The project is included by the European Environment Agency (EEA) and the Joint Research Centre (JRC) as an example of best practice for its effectiveness in reducing greenhouse gases with high global warming potential. Technical details are available in the UNFCCC CDM database: https://cdm.unfccc.int/Projects/DB/DNV-CUK1165837621.12/view. 

In Romania, certified carbon offset projects include Silvador Climate Action, implemented by Silvador Company SRL and Forest Capital SRL, according to the Verra VCS VM0012 (Improved Forest Management) standard. The project manages 1 538 ha of forest in the counties of Dâmbovița and Buzău, generating Verified Carbon Units (VCU) available for purchase on the voluntary market, with current validated and active status (www.silvador.ro).

Another project is the Rotunda Forest Carbon Project, implemented by Global Forest Support GmbH together with SC Rotunda SRL, also certified by Verra VCS VM0012, covering about 1 500 ha of forests in the Carpathians. This was the first project of its kind in Europe to implement the VM0012 methodology, being officially validated and generating tradable VCUs (https://www.scsglobalservices.com/news/first-european-improved-forest-management-carbon-offset-project-achieves-independent).

The third example from Romania is the Involtor Future Agriculture East-Europe Project, implemented by Involtor on agricultural land in Romania, using the Verra VCS VM0042 (Improved Agricultural Land Management) standard, which generated an initial batch of 64 645 VCUs for an area of 4 170 ha, with an approved status with the first credits available for sale (https://verra.org/approval-of-first-vcus-under-verras-improved-agricultural-land-management-methodology-vm0042/).