Are carbon offsets tax-deductible?
Not always. Since there are no specific regulations on this subject yet, general rules apply. It also varies country by country, so make sure to check your own country’s rules.Prior to the UK's decision to leave the European Union, the country was part of the
EU's Emissions Trading Scheme (ETS)
. Since May 2021, however, the UK has introduced its own ETS, which applies to energy-intensive industries like aviation and power generation. The ETS reduces the emissions cap by 5% each year, a bigger cut than the EU scheme, something that will help the UK meet its goal of becoming a zero carbon emitter by 2050.
When the UK ETS was launched, the rate applied to businesses involved was
£50/tCO2e (per tonne emitted).
We hope this guide was useful in helping you understand how you can compensate your CO2 emissions from air travel and how carbon offsetting works. If you’re ready to start reducing your total carbon emissions and take the next step towards becoming carbon-neutral, we can help you!
Click here to learn more about GreenPerk
, TravelPerk’s carbon-neutral business travel programme that allows you to offset CO₂ emissions for anything you book, whether it’s flights, hotels, trains, or cars.