Traveling is one of th emost popular hobbies around the world, but did you know it has a significant impact on the planet? In fact, air travel alone accounts for nearly 2-3% of global carbon emissions. But here’s the good news! With carbon offset programs, you can help neutralize the environmental damage caused by your trips. In this guide, we’ll explore how travel carbon offsets work, why they matter, and how you can contribute to a more sustainable future. Ready to travel responsibly? Let’s dive in!

1. What Are Travel Carbon Offsets?
2. Benefits of Carbon Offsetting
3. Carbon Offsetting: Reasons, Principles, and Types
   1. Principles of Carbon Offsetting
   2. What to Offset?
   3. How Does Carbon Offsetting Work?
   4. How Much Does Carbon Offsetting Cost?
   5. Types of Offset Projects
   6. Are Carbon Offsets Tax-Deductible?
4. How to Calculate Your Travel Carbon Footprint
5. Top Travel Carbon Offset Programs in 2025
6. How to Choose the Right Carbon Offset Program for Your Travels
7. Other Ways to Reduce Your Travel Carbon Footprint
8. Conclusion:

What Are Travel Carbon Offsets?

Carbon offsets are actions that compensate for the emission of carbon dioxide into the environment. Carbon dioxide is a greenhouse gas that is increasing the temperature on the planet and speeding up global warming. Purchasing carbon offsets can be an important step to mitigating aviation’s influence on the climate, according to IATA.

A very close term is carbon credits – a currency you buy to cover for a certain amount of emissions. Carbon credits are issued by governments and regulatory bodies and can be traded to specific eco-friendly projects.

There are two types of such credits:

• Voluntary Emissions Reduction (VER) can be transferred to voluntary products with no regulatory oversight.
• Certified Emission Reduction (CER) is controlled by regulated investment vehicles.

Carbon offsetting dates back to 1989, when an American company Applied Energy Services invested into the support of an agriforest in Guatemala to compensate for emissions of their new power plant in the States. A couple of decades later the Delta airline launched the first offset program for customers in 2007. 

Benefits of Carbon Offsetting

Carbon offsetting comes in different shapes. From tree planting to hydro-electric plants and wind farms, these initiatives help make up for CO2 emissions or even prevent them in the future. But how much are these projects really helpful to compensate the carbon footprint of airlines?

According to statistics, commercial aviation accounts for 3% of global carbon dioxide emissions with an average 5% annual growth rate. In turn, passengers contribute to 80% of CO2 emissions, while freight flights account for 20% only. Interestingly, only 1% of global population accounts for about 50% of carbon emissions from commercial flights, while 80% of the world population have never been on a plane before.

So what does it mean? Air travel does affect the environment unfortunately. If you are one of those 1% of regular travelers (and even if not), offsetting your carbon footprint whenever you have to fly can play a long game in making the world greener. For businesses, carbon offsetting can be an affordable and efficient way to reduce CO2 emissions and contribute to local communities, strengthening their authority on the market.

Carbon Offsetting: Reasons, Principles, and Types

Principles of Carbon Offsetting

When choosing a carbon offsetting program to invest in, make sure it follows the principles below put forward by IATA::

1. Permanence. The emissions reduction cannot be reversed in the future.
2. Additionality. The program should confirm that your carbon credits would bring value, which would not be generated by usual business activities.
3. Complementarity. The program should have a range of measures to reduce emissions alongside accepting carbon credits.
4. Verification. Ask for records of aircraft emissions that the offset program covers. They should be verified by an independent regulatory body.
5. Registration. Such reductions in CO2 within the offset program should be recorded and tracked through a central registry.
6. Traceability. The project must use the carbon credits and not resell them.
7. Guarantee. The project should guarantee that certain reduction in CO2 emissions will be achieved at some particular date, otherwise an alternative offset should be made.

What to Offset?

The following activities of airlines generate CO2 emissions:

• Transfer from and to airports
• Aircraft manufacturing
• Aircraft maintenance
• Ground operations
• Airport facilities maintenance
• Flight operations

How Does Carbon Offsetting Work?

Basically, carbon offsetting is sending donations to sustainable projects around the world to reduce carbon dioxide emissions by the same amount. Carbon offsetting programs can be of two types: mandatory for airlines and voluntary for passengers. While airlines are required to become carbon neutral by offsetting the same amount of emissions, passengers are free to do the same on their part if they want.

Mandatory	Voluntary
Airlines supporting carbon neutral growth	Passengers reducing their own footprint

How Much Does Carbon Offsetting Cost?

Carbon offset calculators work in different ways, but a typical fee to offset a tonne of carbon dioxide is $13. For reference, an average European citizen emits 9 tons of CO2 per year. 

Types of Offset Projects

There is a wide range of offset projects that accept carbon credits based on how they reduce CO2 emissions. Here are the main types according to IATA:

• Land Use and Forestry. These types of projects fight against deforestation and support sustainable land use.
• Energy Efficiency. Such projects support the manufacture of more efficient stoves, as well as more efficient power generation, and even the use of waste energy in co-generation.
• Renewable Energy. Such initiatives invest in wind turbines, hydroelectricity, as well as solar, thermal, and photovoltaic systems.

Are Carbon Offsets Tax-Deductible?

In some cases, yes. For example, in the United States, supporting a project registered as a 501(c) (3) nonprofit organization is considered a donation and can be deducted from your tax amount. However, the rules depend on the type of offsets and vary country by country. While individual offsets are usually considered personal expenses and therefore not qualify, businesses that invest into projects closely related to their operational activities might get more lucky.

How to Calculate Your Travel Carbon Footprint

While it is quite easy to calculate your travel carbon footprint, offsetting itself is not a very straightforward process. Technically, you will be donating money to reduce emissions by the same amount as your plane emits somewhere else in the world. 

Carbon emissions for commercial flights depend on a range of factors, including the distance, flight class, type of plane, height of plane, etc. A big part of emissions during air travel are released during take off and landing. By choosing direct flights or minimizing the number of layovers, you can already reduce your carbon footprint.

You can easily calculate your travel CO2 footprint with dedicated calculators. Type in the flight distance or destinations, type of class, and number of passengers, and you will see the approximate amount of carbon emissions released during your flight.

Top Travel Carbon Offset Programs in 2025

To choose a reliable carbon offset program, it is crucial to check it against the principles mentioned above. A good program is verifiable, permanent, additional, and can prove it with relevant certifications and badges.

Essentially, there are three ways to purchase carbon credits: directly on your airline’s website, on a dedicated third-party marketplace, or by supporting a project you know and trust. 

Here are some of the airlines that offer carbon reduction projects:

• Qantas. The Quantas Group, based in Australia, has been investing into carbon reduction within and outside the aviation sector since 2007. Customers can purchase credits via Future Planet or Fly Carbon Neutral programs.
• Delta. Delta is the first American airline to start a carbon offsetting program in 2007. 
• United Airlines. United strives to achieve net zero greenhouse gas emissions by 2050. 
• KLM. KLM is a Dutch airline that reduces carbon emissions through reforestation initiatives.
• Lufthansa. The German airline Lufthansa offers a number of projects to offset carbon dioxide emissions for its passengers.

If your airline does not offer buying carbon credits, you can also explore some of projects below that support a wide range of initiatives.

• Cool Effect Travel Offsets

Projects: Cool Effect supports a variety of carbon reduction projects, including renewable energy, methane capture, and forestry initiatives.

Country: Based in the United States, Cool Effect funds projects both domestically and internationally.

Price per Tonne: Offsets are priced at $18.68 USD per tonne of CO₂. 

• Terrapass

Projects: Terrapass funds projects such as wind energy, landfill gas capture, farm power, and forestry.

Country: Headquartered in the United States, Terrapass supports projects across North America and internationally.

Price per Tonne: Offsets are available at $7.99 USD per 1,000 lbs (approximately $17.62 USD per tonne) of CO₂.

• Native Energy Travel Calculator

Projects: Native Energy focuses on CO₂ reduction, clean water distribution, on-farm projects, renewable energy, and nature-based solutions.

Country: Primarily serves individuals and businesses in the United States.

Price per Tonne: Specific pricing information is not readily available; it’s recommended to consult their website for detailed rates.

• Gold Standard

Projects: Gold Standard certifies a wide range of projects, including renewable energy, energy efficiency, waste management, and forestry, ensuring they contribute to sustainable development goals.

Country: Operates globally, certifying projects in various countries.

Price per Tonne: As a certification body, Gold Standard does not sell offsets directly; prices vary depending on the project and retailer.

• MyClimate in Switzerland

Projects: MyClimate supports projects in energy efficiency, renewable energy (such as solar and wind power), waste management, and forestry.

Country: Based in Switzerland, MyClimate funds projects worldwide.

Price per Tonne: Offsets are priced at approximately $30 USD per tonne of CO₂. 

• Atmosfair in Germany

Projects: Atmosfair focuses on renewable energy projects, including solar, hydropower, biomass, and energy efficiency initiatives.

Country: Based in Germany, Atmosfair supports projects in developing countries.

Price per Tonne: Specific pricing information is not readily available; it’s recommended to consult their website for detailed rates.

Please note that carbon offset prices can vary based on project type, location, and certification standards. 

If none of the options above speak to you, you can also research independent small projects that offset carbon and support them directly.

How to Choose the Right Carbon Offset Program for Your Travels

Now the next question you might have is how to choose a really good project. When choosing an offsetting project to invest in, consider the following points:

• Standards. Explore what verification and auditing procedures the project has in place. This will help protect your investment and make sure it really supports the environment.
• Price. Different projects may have different price per ton of CO2, which directly influences the cost of your participation.
• Relevance. Choosing a project relevant to your business will also help resonate with your customers and support local communities.
• Location. There are local and international projects. Supporting either of them is good, but maybe if you are taking a local flight, it’d make more sense to offset carbon directly in the same area.

Other Ways to Reduce Your Travel Carbon Footprint

Our post would not be complete if we didn’t consider another side of the topic. Unfortunately, there is research that shows low efficiency of carbon offsetting projects. For instance, this study claims that less than 16% of carbon credits issued to the projects analyzed within the research actually reduced emissions. From all the types of initiatives analyzed, clean cookstove ones were the least efficient with only 11% of carbon emissions reduction, while other projects like deforestation showed slightly better results – 25% reduction.

So, what does it mean? Carbon offsetting is a great concept in theory but can be hard to implement in practice. It should better not be the only step you take to reduce your CO2 emissions. The steps below are easier to take:

1. Take a train. The best alternative to carbon offsetting is not taking a plane in the first place. Explore more sustainable ways to flying, such as trains, cycling, electric vehicles, etc.
2. Reduce stopovers. If you have to fly anyways, reduce the number of stops. Take off and landing account for a big part of carbon emissions during a flight, so flying directly will result in lower emissions.
3. Fly economy class. Unfortunately, business and first class release more emissions per person because there is more space per seat, more luggage allowed, etc. 
4. Book green accommodation. Choose hotels with green certifications and practices, such as recycling, using green laundry detergents, water filtration, etc. Alternatively, book homestays with locals on dedicated platforms like Airbnb.
5. Shop at local businesses. Buying groceries, souvenirs, clothes, etc. can also become a sustainable initiative if you support local shop owners. For example, eating locally sourced food helps support local economies.
6. Pack light. Finnair found that if everyone flying with them took one kilogram less in their luggage during one year that would have covered twenty flights between Helsinki and Tokyo.
7. Minimize your waste. Instead of buying and throwing away plastic water bottles, you can have a refillable one. Take food leftovers from your restaurant meal with you in a reusable food container.

Conclusion:

Traveling is a great experience, and it does not have to be harmful to the environment to be enjoyable. With more and more companies realizing the importance of sustainable travel initiatives, the number of such offers for mindful travellers also increases. 

Offsetting carbon is unfortunately not a very straightforward process. In reality, you are not directly offsetting the carbon emitted during your flight but supporting a green project in the same or other area. While it is a great and considerate step, following other green travel tips can go a long way in ensuring your travel only benefits the planet.