The Carbon Credit Illusion: The Thin Line We Can’t Ignore

By Fathima Sumayya

In the race to become ‘net zero’, more and more companies are turning to carbon credits to offset their emissions. On paper, it sounds like a win: emit carbon here, pay someone to reduce it somewhere else and you’re off the hook.

But let’s pause for a reality check…

Behind many of these offset purchases is a different story- one that’s not shared in glossy sustainability reports or corporate websites. It’s a story where ambitious net-zero targets quietly become unachievable and instead of changing how business is done, companies reach for their wallets. No talk of reducing flights, switching to renewables or rethinking their supply chain. Just an expensive offset, likely bought as a last-minute fix.

So, where’s the problem?
When companies skip the hard work and buy their way to “net zero” they’re not solving the climate crisis- they’re outsourcing responsibility. It sends a dangerous message: that climate action can be bought not earned.

Let’s ask a few uncomfortable questions:
• Could everyone carry on polluting at the current rate and just offset?
• Could there ever be enough offsetting to go around?
• Could offsetting work in time to solve the climate crisis by 2050?

The answer, simply, is no.

Offsetting is limited- not just in scale, but in time. Trees, for instance, can take anywhere between 40 and 100 years to absorb the carbon we’re emitting today. We don’t have that long. The climate crisis is urgent, and the clock is ticking.

Even if we planted every available tree, there wouldn’t be enough land or time to balance out the current level of global emissions. In other words: offsetting is not a plan- it’s a stall.

The UK’s Climate Change Committee (CCC) has been clear on this. In their ‘Balanced Pathway’ scenario for reaching net zero by 2050, the CCC found that the vast majority of emissions reductions must come from direct action- within sectors, within companies, within supply chains. The CCC sees carbon offsetting as a last resort for emissions that are impossible to eliminate, not as a replacement for real, sustained internal change

When credits are used as a shortcut instead of a supplement, it’s not climate leadership- it’s greenwashing.

Lets be clear here, what does net zero actually mean?
Real net zero means real change in how a company operates.
It means challenging questions: Can we travel less? Can we reduce waste or procedure goods with less embodied emissions? Can we use sustainable energy? Can we use sustainable energy?

And no, it does not mean continuing with business-as-usual and cutting a cheque to look clean on paper.

What should businesses aim for?
• Transparency: If you’re buying offsets, be clear about how much you’re reducing internally vs how much you’re offsetting.
• Priority to internal reduction: Don’t just rely on credits, demonstrate real change within your operations.
• Long-term vision: Sustainable business is not about quick wins. It’s about building a resilient, responsible organisation.

Let’s shift the focus from offsetting to owning emissions. That’s where real impact lies.