Green Glossary
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Carbon offset
Carbon offsetting means supporting the reduction of greenhouse gas emissions by the same amount that your daily activities add. In other words, you are neutralizing your impact by helping fund projects that prevent future greenhouse gases from entering the atmosphere. Carbon offsets are measured in metric tons of carbon-dioxide equivalent (CO2e). One carbon offset represents the reduction of one metric ton of carbon-dioxide, or its equivalent in other greenhouse gases. There are a number of projects that can offset carbon ranging from clean energy development to methane-capture facilities. There are two primary markets for carbon offsets. In the larger compliance market, companies, governments or other entities buy carbon offsets in order to comply with caps on the total amount of carbon dioxide they are allowed to emit. In the much smaller voluntary market, individuals, companies or governments purchase carbon offsets to mitigate their own greenhouse gas emissions from transportation, electricity use and other sources. Carbon markets have been imposed by laws such as the Kyoto Protocol. However, the United States only has a voluntary market.