Global warming is an international problem which has led to that many corporations today has an increased environmental awareness.

This thesis includes a Cost Benefit Analysis (CBA) approach which evaluates whether carbon offsetting is a profitable alternative for corporations and society wide. The study is predominately focusing on the emissions of the greenhouse gas . The calculations of CBA show the difference between the scenarios with or without the carbon offsetting. In the CBA approach effects are divided into benefits and costs.

The study includes a case study of Husqvarna AB and is carried through with aim to get a decision support whether or not to make the corporation carbon neutral. Basic data from Husqvarna AB has been used.