Carbon offsetting is when an activity prevents, reduces or removes greenhouse gas emissions from being released into the atmosphere, compensating for emissions from elsewhere. 

Anyone can buy carbon credits and use them to balance their emissions. These offsets, which can be generated by planting trees, wind farms and hydroelectricity, can neutralize the carbon emissions of companies in all sectors, including agriculture. When the balance between the CO₂ emission and offset of activity is zero, it is called carbon-neutral. 

The purchase of carbon credits is regulated by the government. In Australia, the carbon market is regulated by the Clean Energy Regulator. The Carbon Credits (Carbon Farming Initiative) Act 2011, of 2014, states that the Australian carbon credit unit is personally owned and is generally transferable. For this, the offset project must be carried out in Australia and follow the methodology determined by the Act.