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As global temperatures rise, more and more companies are prioritizing effective corporate climate action. While many try to avoid and reduce their emissions – what about unavoidable emissions? 


By financially supporting high-quality, certified climate projects with the purchase of carbon credits, these emissions can create an equivalent climate benefit. In the past, the terms “Carbon compensation” or “carbon offsetting” were used for this concept.

Eine Frau kocht mit einem effizientem Kochofen aus einem Klimaschutzprojekt in Uganda

Carbon Compensation:
A Corporate Climate Solution 

What is CO2 Compensation? 

As part of the Kyoto Protocol, carbon offsetting or carbon compensation was defined as a method of compensating for CO2 emissions based on the principle of global climate balance. The idea was that it is irrelevant for the climate where in the world emissions are produced and where they are saved. Unfortunately, in practice it is often not possible to completely avoid all emissions. Even after taking action to reduce the carbon footprint, unavoidable emissions often remain. By supporting climate projects elsewhere in the world, companies can offset these residual emissions that arise at one location with an equivalent climate benefit through emission savings or the storage of CO2.


In the past, the process was primarily known as “carbon offsetting or carbon compensation. In light of the changed framework conditions following the entry into force of the Paris Agreement and the drive for greater transparency in sustainability communications, First Climate now communicates more precisely using the contribution approach of supporting climate action with carbon credits.

Supporting Climate Action instead of “carbon compensation”

In line with the quality initiatives active on the voluntary CO2 market, such as the Science Based Targets initiative (SBTi) and the guidelines of the Paris Agreement, we now refer to using carbon credits to "support climate action" instead of "carbon compensation". This is based on the financing of project-based climate action with the purchase of carbon credits.


As an interim solution until new low-carbon technologies or energy sources are developed, funding climate projects is an important instrument for corporate climate action, especially in areas where a substantial reduction in greenhouse gas emissions cannot be achieved in the short term by other means.


We support you on your way to more climate action!


Learn more about our offers in the area of supporting climate projects with carbon credits.

Further information about our contribution claim: 


​Contact us!

Neutral Team
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