Home / Branded clothing and merchandise with your logo / Sustainability / What is the difference between carbon neutral and carbon offset?

Carbon offset means emissions have been bought off through a climate project. Carbon neutral implies a structured process of measuring, reducing and offsetting residual emissions. The terms are not interchangeable, and the EU Green Claims Directive is pushing for more nuance.

The right order

  1. Measure: calculate the footprint using LCA data.
  2. Reduce: choose sustainable materials, local production and efficient transport.
  3. Offset: only the residual emissions, through a certified project (Gold Standard, VCS).

What sets a good offset project apart

  • Additionality: without the funding, it wouldn’t go ahead.
  • Permanence: the CO2 stays locked away for the long term.
  • Leakage prevention: emissions don’t simply shift elsewhere.
  • Monitoring: independent verification.
  • Co-benefits: social or biodiversity effects.

Recommended labels

  • Gold Standard (set up by WWF).
  • Verified Carbon Standard (VCS).
  • Plan Vivo (smallholder-based).

More on our carbon footprint page.