Introduction to Carbon Offsets

Carbon offsets are becoming an increasingly popular way for businesses to adhere to emissions regulations.

As is commonly known, new laws are being instituted that set a cap on the amount of emissions that corporations are allowed to have (usually measured in metric tons of carbon dioxide). If a company exceeds the limit, they may be required to purchase offsets.

The carbon offset market is an efficient way for the government to enforce emissions laws. In addition, the money used to purchase carbon offsets are put towards environmentally friendly projects, primarily renewable energy. The idea is that the money a company pays will fund a project, such as a wind farm or new forest, that will negate any extra carbon that company produces. In this manner, a carbon neutral system is maintained, which is an important factor in the fight against global warming. Eventually, it is hoped that can create a carbon-positive system, in which we eliminate more carbon than we output. Achieving this goal is imperative, and fully reachable through continued innovation by the world’s energy corporations.

Offsets are not just for companies. Individuals who feel the need to compensate for their personal emissions, such as from car travel and home heating, can voluntarily purchase carbon offsets from private companies. The market for these kinds of offsets is growing, as more people become aware of the need to improve the environment.

Controversy is not nonexistent in the carbon offset industry. For one, many people believe that offsets are morally wrong, and companies should try to fix their inefficiencies rather than take the easy way out. There is also speculation as to the effectiveness of offset projects, and if they really offset as much carbon as companies produce superfluously. Before the market can be feasible on a global scale, much improvement still needs to be done.