Carbon Offset
A carbon offset is a financial instrument aimed at reducing Carbon emission and thus Green house effect to our environment.
Carbon offsets are measured in metric tons of Carbon dioxide (CO2), emission reduced. One carbon offset represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.
Governments buy Carbon Offsets, in order to comply with the cap that is normally put on countries or industries to contain emission of green house gases. And where ever it is not possible or Governments (or industries) to cap the green house gas emission, it is offset by purchasing Carbon Offsets.
In certain cases, individuals or companies, or governments purchase carbon offsets voluntarily to mitigate their own greenhouse gas emissions from transportation, electricity use, and other sources.
Many companies offer carbon offsets as an up-sell during the sales process so that customers can mitigate the emissions related with their product or service purchase.
Offsets are typically achieved through financial support of projects that reduce the emission of greenhouse gases in the short- or long-term. The most common such project is renewable energy. Others include energy efficiency projects.
Some times, offsets may be cheaper or more convenient alternatives to reducing one's own fossil-fuel consumption.
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