Carbon offsetting - what's a better way?

Here at Effektiv Spenden we recommend externally audited climate action projects, which are proven to contribute many times more to climate action than the average. However, as an analysis in The Guardian pointed out in 2023, many carbon offset projects are not only of average effectiveness, but actually contribute to no greenhouse gas savings at all. Of 50 of the world’s largest carbon offset projects, 39 are likely to be completely ineffective, while the impact of a further 8 projects is at least questionable.

At best, the world’s largest offset projects therefore contribute little or nothing to climate protection. In the worst case, they even increase emissions - namely if the buyers of the offsets have foregone their own savings.

It is therefore becoming increasingly clear that an important element of climate action, which is used by both private individuals and companies, is apparently largely ineffective. What does this mean?

1. Efforts to reduce their own emissions remain the most important - and indispensable - contribution to climate action, especially for companies.
2. A more far-reaching commitment is of course also important - but there are better approaches than carbon offsets, which, for other reasons, we also view critically.

Giving Green, an organization that makes recommendations for the most effective climate action for private individuals and companies, recommends, for example, that companies become more politically involved, promote innovative climate technologies in their own supply chain, or also support promising climate protection initiatives with “Climate Action Funds”. 

The WWF is also calling forcompanies to break with the traditional offsetting logic and instead put a carbon price on any remaining greenhouse gas emissions internally and invest the resulting amount “in projects with maximum benefit for the climate, nature and people.” 

This is precisely the aim of our top recommendations for effective climate action. Our Climate Action Fund offers both companies and private individuals a flexible way to make a highly effective contribution to climate protection: in any case, many times more than what traditional offsetting projects promise - and above all deliver.

About the author

Sebastian Schienle

Founder & Former Head of Research

I was a co-founder of effektiv-spenden.org and headed up the research department there until 2024. I have been professionally involved in effective climate protection and sustainability for over 15 years, including in my roles as a management consultant and for a family foundation.