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What Are Carbon Offset Credits and How Do They Work (2023 Guide)?

What Are Carbon Offset Credits and How Do They Work (2023 Guide)?

ImpactDigger by ImpactDigger
February 15, 2023
in Carbon market
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Carbon offset credits are a way to compensate for the carbon emissions that are released into the atmosphere. They are issued by verified projects that reduce, remove, or avoid greenhouse gas emissions, and they represent the right to emit one ton of CO2 or its equivalent gas. Carbon offset credits are used in the compliance and voluntary carbon markets, with the latter being more popular with companies outside of the heavy emitting sectors. Carbon offset credits are used to reduce emissions, protect natural carbon sinks, and to incentivize companies to reduce their emissions by putting a price on their environmental impact. To purchase carbon offset credits, companies can ask for a broker’s help or they can follow the steps of calculating their emissions, cutting emissions where possible, and offsetting unavoidable emissions.

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