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Examples of carbon offsetting projects are the following: Solar power (providing for own power using solar panels to avoid buying power from the grid), wind power (putting wind turbines instead of fuel-based generating plants) , hydroelectric power, fuel efficiency, fuel substitution (switching to a fuel which emits less carbon), co-generation (generating electricity and heat from one source), efficient lighting (replacing incandescent lamps with compact fluorescent lamps), materials switching (replacing input materials for industrial processes to those with less carbon emission), construction of green buildings (which are energy and materials efficient), green transport (using LPG as fuel and driving hybrid cars), utilization of industrial waste (e.g., recycling), biomass power generation (burning farm residue to generate power), reforestation and efficient pasture management (e.g., inter-cropping with plants that enhance the carbon storage capacity of the soil).

Green Energy Projects Large-scale offsetting activities normally arise in energy or environmental protection projects implemented through the so-called Clean Development Mechanism (CDM) under the Kyoto Protocol. The mechanism is essentially trading an institution's excess carbon emissions with another's surplus to lead to a net zero sums.

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