Carbon Offsetting in the Construction Sector
Carbon offsetting means paying for projects that remove or reduce carbon emissions to balance out the ones your business produces. In construction, emissions come from things like diesel equipment, transport, and materials. If your company cannot fully cut those emissions, you might buy carbon offsets to “balance” them. For example, you could support a tree-planting project or renewable energy scheme that reduces the same amount of carbon somewhere else. The goal is to achieve net zero or carbon neutrality for your work.
Why offsetting can be problematic
Offsetting might sound like an easy fix, but it can be risky if it replaces real change. Here are some common problems:
It can become an excuse. Buying offsets should never replace improving how you work. If a business keeps using old equipment but buys cheap offsets, the overall impact is still negative.
Not all offsets are reliable. Some projects sell credits for emissions savings that are not real or permanent. For instance, a forest may later be cut down or burnt, releasing the stored carbon back into the atmosphere.
Hard to measure. It is not always clear how much carbon a project truly offsets. Estimates and assumptions can be misleading.
Short-term fixes. Many offset projects are temporary. Real progress in construction comes from reducing emissions on-site and across the supply chain.
How companies can do it right
Offsetting can still have value if done carefully and honestly, but it should always come after real emission reductions.
Focus on reducing first.
Use modern, low-emission machinery
Plan deliveries to reduce transport mileage
Choose low-carbon materials and suppliers with Environmental Product Declaration (EPDs)
Once you have reduced as much as possible, you can consider offsetting what remains.
2. Buy quality offsets only. Choose verified projects certified by reputable organisation such as the Verified Carbon Standard by Verra or the Gold Standard. These are checked by independent experts to make sure the carbon savings are real and lasting.
3. Support projects that make sense for your business. For example, biodiversity restoration near project locations or initiatives that promote a circular economy, such as material recovery, reuse schemes, or projects that turn construction waste into new resources.
4. Be open. If you buy offsets, say exactly what they are, who runs them, and how much carbon they cover. Transparency builds trust with clients and main contractors.
5. Make it part of your wider sustainability plan. Offsetting should fit into your company’s long-term carbon reduction strategy, not be treated as a one-time fix. Track your emissions each year and show steady progress in reducing them.
Our sustainability consultancy can help you develop practical carbon reduction and offsetting plans that fit your business, align with client requirements, and support your journey toward net zero. Contact us for more information.