The carbon pricing offset opportunityCarbon pricing initiatives using carbon credits,or offsets, allow for channelling some ofthe value of a carbon price towards actionsoutside of a sector or organisational boundary,including toward natural climate solutions.Revenue from offsets can be used to fundemissions reduction activities that would nototherwise occur, creating a climate benefit thatbalances (or offsets) emissions from the buyer.By offering an additional suite of greenhousegas reduction options, offsets can provide analternative price-point to meet an emissionstarget, whether that target is set by a regulatoror voluntarily by a business itself.Given the rapid and deep decarbonisationneeded across economies to deliver net-zeroby 2050, carbon offsets while not a long-termsolution to global warming, can however, playan important transitional role in the near term.This is because many organisations, evenafter robustly doing all they can to avoid andreduce emissions where they can, often stillhave emissions more difficult or expensive toreduce in the short-term, given the solutionsavailable today. Purchasing offsets allowsthese organisations to neutralise the climateimpacts of these emissions by fundingcarbon-reducing activities that would not haveoccurred otherwise. Such offsets must be partof an overall long-term decarbonisation planand not an avoidance strategy.