As the world struggles to deal with the serious threats posed by air pollutants and greenhouse gases, carbon offset provides an incentive to encourage governments and organizations to keep carbon emissions within prescribed limits.

Carbon offset is a method of reducing the emission of harmful greenhouse gases by using different means like sustained reforestation initiatives, alternative and renewable energy usage etc. The carbon credits scheme of the 2005 Kyoto Protocol, an international environmental treaty ratified by 170 nations in 2005 lays down the emission limits for countries, which then governs allowable emissions by industrial units.

The Protocol says that entities releasing a huge quantity of carbon dioxide must restrict their CO2 emissions to allowed levels, or else pay a carbon tax, which is an environmental tax on hazardous emissions, or alternatively purchase carbon credits certificates that can be traded in the market. One carbon credit, which is an older instrument than carbon offset, permits the credit’s buyer to discharge one tonne of carbon dioxide into the air, and this method is the most economical method of buying an allowance to release extra greenhouse gases in the air. Both multinational and local firms, to make their operations carbon neutral and enhance their image before clients and investors, are increasingly buying carbon credits.

Another innovative method, carbon offset, has opened up an excellent financial opportunity, especially in the third world countries, as the scheme provides adequate financing for green projects that are created to help decrease the overall carbon footprint in the world. It immensely aids in promoting renewable and eco-friendly energy options like tidal energy and wind energy, and in financing projects on nature conservation and reforestation.

Apart from the companies, even individuals are contributing to the environment by purchasing carbon offset and encouraging others to do the same. Buying carbon offset is straightforward and can be easily executed on the internet through one of the several carbon offset provider websites; but it must be ensured that your money is making real influence through proper projects.

Although carbon offset is a great option we must also keep in mind that we need to take more proactive steps by making small environment friendly decisions in our everyday lives. Minor steps like switching off electrical devices and appliances when not in use, substituting fossil fuels by cleaner ones like biodiesel, and making use of LED lighting and low-energy bulbs can actually help a lot in decreasing overall emissions.

Carbon offset is still an alien word for average people. Mass awareness on the issue through extensive education is needed to bring us a few steps closer to a pollution free and healthy planet.

Discover more about carbon credits and carbon offset and get a deeper understanding on how you can help in saving the environment.

This entry was posted on Friday, January 29th, 2010 at 2:20 am and is filed under Business.