Biodiversity offsets are an increasingly popular yet controversial tool in conservation. Their popularity lies in their potential to meet the objectives of biodiversity conservation and of economic development in tandem; the controversy lies in the need to accept ecological losses in return for uncertain gains. The offsetting approach is being widely adopted, even though its methodologies and the overriding conceptual framework are still under development. This review of biodiversity offsetting evaluates implementation to date and synthesizes outstanding theoretical and practical problems.