Climate neutrality & CO2 compensation

The German Federal Climate Protection Act (KSG) requires companies to achieve climate neutrality. This goal is reached when companies either cease all climate-damaging emissions or offset or neutralize unavoidable greenhouse gases through certified compensation projects, such as the development of carbon sinks. Furthermore, initiatives like the Science Based Targets initiative and the latest IPCC report urge swift action to counteract advancing climate change.

Avoidance, reduction and compensation: This is how climate neutrality can be achieved.

The alignment of Climate strategy This varies from company to company and also within different industries. Also, the Climate management A company's success is influenced by individual circumstances. However, the foundation is always the same objective: the Avoidance and reduction of greenhouse gas emissions such as CO₂₂, to become climate-neutral in the long term and to keep the consequential costs of climate change as low as possible. Currently, however, the goal of climate neutrality is difficult to achieve without the Compensation to realize unavoidable greenhouse gas emissions.

Note: From September 27, 2026, climate neutrality claims in connection with offsetting will no longer be permitted. Please contact us for further information; we will be happy to inform you about the regulations. Options for implementing the EmpCo directive.

Our consulting services include: developing an individual compensation and neutralization strategy.

We will explain the background of compensation and neutralization and work with you to develop a suitable strategy. We will clarify how compensation works and its challenges, and help you develop an individual approach to managing it.

At the end of 2023, a standard was first introduced for Greenhouse gas neutrality published. The ISO 14068-1 It contains requirements for GHG-neutral organizations and products. However, it also has weaknesses, which the German Federal Environment Agency (UBA) has addressed in a Factsheet The analysis explains and evaluates the situation. It shows that statements regarding GHG neutrality only meaningfully contribute to climate protection if companies go beyond the standard.

Frequently asked questions about compensation

What does compensation mean?

The compensation scheme provides financial support for all climate protection projects whose measures contribute to reducing or avoiding greenhouse gas emissions. These include, for example, the expansion of solar power, biogas plants, or hydropower.

What does neutralization mean?

Neutralization means supporting CO2 sink projects that actively remove carbon dioxide from the atmosphere and store it long-term (e.g., reforestation, building up the humus layer, restoring peatlands). In addition to natural measures, there is also the option of creating technical sinks, such as carbon capture and storage (CCS).

What changes are brought about by the Paris Agreement?

With the entry into force of the Paris Agreement at the beginning of 2021, a supply gap is currently emerging in the carbon offset market. To meet the requirements of the agreement and avoid double counting, projects with so-called corresponding adjustments are necessary. These are currently very rare. Therefore, offsetting with certificates from projects starting in 2021 is currently hardly possible.

What is a Gold Standard certificate?

A Gold Standard certificate guarantees the environmental and social sustainability of a climate protection project. The Gold Standard is the world's strictest standard for voluntary emissions trading. It was developed by the World Wide Fund for Nature (WWF).

Version of 25.09.2026
The content on this page reflects the current state of affairs at the time of publication. Please note that the legal situation may change in the future.

Further topics for climate protection consultation

Your contact person

Lisa Rummel
Munich office
Phone: +49 (0)89 1 21 09 94-0
Email: Lisa.Rummel@arqum.de

Lisa Rummel has been working for Arqum since 2019 and, as Senior Project Manager, oversees various projects related to corporate environmental and climate management.

One of her key areas of expertise is the preparation of carbon footprint assessments according to recognized standards such as the Greenhouse Gas Protocol and ISO 14064. She has already supported numerous organizations, particularly in the public sector and in financial and funding institutions, with carbon footprint assessments, the development of climate strategies, and comprehensive climate management. She has also contributed her expertise to the German Federal Environment Agency, resulting in the guide "The Path to Greenhouse Gas Neutral Administration – Stages and Support" (German Federal Environment Agency, 2021).

Lisa Rummel regularly conducts training courses on climate accounting, advises companies on the introduction and further development of environmental management systems according to EMAS or ISO 14001 and heads the Arqum internal expert team for climate management.

What can we do for you?

References

Customer projects Climate

Climate and sustainability management

Support in setting up a climate and sustainability management system.

Climate management

Support in preparing a GHG balance sheet for Scope 1-3 and in developing 81 measures to reduce direct and indirect GHG emissions.

Climate

Conducting a convoy for greenhouse gas accounting of 19 federal cultural institutions.

Climate management

Support in determining Scope 3 emissions according to the GHG Protocol.

Environmental and climate management

Support and assistance in achieving climate neutrality; climate accounting according to the Greenhouse Gas Protocol; support in maintaining and further developing the environmental management system according to EMAS.