The word 'offsetting' simply means 'compensating for'. 'Carbon offsetting' means compensating for carbon dioxide (CO2) that's being generated. We need to compensate for CO2 because of the threats posed by climate change.

Realistically, no-one can expect people to cut out absolutely everything they do that leads to CO2 emissions. We all can - and must - reduce the CO2 we're responsible for, but offsetting means we can compensate for the CO2 we can't avoid creating. Carbon offsetting schemes work by reducing CO2 that would otherwise be created, or by removing existing CO2 from the atmosphere.

And who benefits from the carbon offsetting? Who gets compensated? The answer is Planet Earth - and absolutely everyone and everything that lives on it. - Description added by: David Lockie

Heating and cooling are typically extremely energy intensive technologies. In the United Kingdom the majority of heating in our homes and buildings is provided by burning natural gas. Renewable energy technologies such as solar heating, or heat pumps provide a sustainable low carbon alternative. Condensing boilers, and combined heat and power (CHP) also offer significant energy savings. In this circumstance energy that would have otherwise been wasted (which happens in traditional power plants) is instead used by the local community via a district heating scheme. Alternatively, a micro CHP system (such as a residential fuel cell, or Stirling engine) produces both electricity and heat to serve a local heat demand i.e. for a particular building. Energy efficiency technologies such as low carbon ventilation solutions can reduce the energy demands of buildings. - Description added by: David Lockie

Renewable and alternative energy sources are set to play an increasingly important role in providing the electricity, heat, cooling and fuels that society needs. There is a wide range of energy sources such as solar (both photovoltaic and solar thermal), wind, bio-fuels and biomass, hydro-electric, geothermal and heat pumps. - Description added by: David Lockie