What is a Carbon Offset
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A carbon offset is a financial instrument representing a reduction in greenhouse gas emissions, measured in metric
tons of carbon dioxide. One carbon offset represents the reduction of one metric ton of carbon dioxide.
In 2006, approximately $5.5 billion of carbon offsets were bought in the compliance market, representing about 1.6 billion metric tons of
CO2e reductions.
Carbon Offset Markets
There are two primary markets for carbon offsets: the compliance market in which companies, governments or other organizations
purchase carbon offsets in order to comply with limitations on the total amount of carbon dioxide they are allowed to emit: In 2006,
approximately $5.5 billion of carbon offsets were bought in the compliance market, representing about 1.6 billion metric tons of CO2e reductions.
In the voluntary market, individuals, companies, or organizations purchase carbon offsets to offset their own carbon dioxide emissions
from transportation, electricity use, travel etc.
In 2006, approximately $91 million worth of carbon offsets were purchased in the voluntary market, translating to 24 million metric tons of
CO2e reductions.
Carbon Offsetting to be Carbon Neutral
Carbon offsetting, a major factor in maintaining a carbon neutral lifestyle has gained much appeal and momentum, mainly
among consumers in western countries who have become acutely aware and concerned about the negative environmental effects of energy-intensive
lifestyles and economies.
The Kyoto Protocol has sanctioned offsets as a way for governments and private companies to earn carbon credits which can be traded on a marketplace.
The current commercial system has added to the increasing popularity of voluntary offsets as well as investment in clean technologies, clean
energy and reforestation projects around the world. Carbon offsets are often considered to be a cheaper and more convenient
alternative to reducing one's own fossil-fuel consumption, but we advise our customers to work on an carbon emission-reduction plan alongside
an carbon offset scheme.
Deforestation accounts for about 20% of the world’s greenhouse gas emissions, more than all the trains, planes and cars on the planet.
Request the Brochure for further
Carbon Offset Forestation Project
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For individuals and corporations
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Your FREE guide to our reforestation project
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