Carbon compensation is an approach which consists in implementing projects to reduce or capture and sequester carbon in another location after having attempted to reduce CO2 emissions in one location. These projects can involve energy efficiency, renewable energy production, or even reforestation.
This approach is based on the fact that the greenhouse effect is a global phenomenon and that a quantity of carbon emitted in one place can be compensated by the reduction or sequestration of the same quantity in another place.
Financing renewable energy, such as wind energy, can compensate for carbon emissions. © Jamiecat* CC-by