| m carbon offset means that you attempt to | | | | The Kyoto Protocol is one |
| mitigate or reduce the effects of your emission | | | | internationally-recognized treaty which defines the |
| of greenhouse gases by trying to do other | | | | limits of emissions that entire countries can |
| activities which may have an equivalent value. For | | | | release into the environment over a certain period |
| example, you might attempt to mitigate your | | | | of time. These countries are then responsible for |
| carbon footprint or amount of carbon dioxide that | | | | regulating the businesses or enterprises which |
| you are responsible for producing because you | | | | operate in their jurisdiction, as far as their level of |
| own a private vehicle, by planting many, many | | | | emissions are concerned. Just like in emissions |
| trees in your community. To mitigate means you | | | | trading as shown above, the carbon credits |
| are offsetting your carbon emissions rather than | | | | scheme allows businesses which have surpassed |
| reducing the degree to which you create carbon | | | | the permitted amount of emissions released to |
| emissions in the first place. | | | | purchase carbon credits from those businesses |
| The term carbon offset is used in close relation | | | | which have been able to stay within emissions |
| to the concept of emissions trading. In emissions | | | | limits. An interesting aspect of carbon credits is |
| trading, a government agency is usually | | | | that they can be traded on an open market level |
| responsible for setting mandatory limits for | | | | as well, with a market price being observed. |
| emission of a type of pollutant. If the enterprise is | | | | On the other hand, there are companies which |
| able to stay within limits for emission of that | | | | are able to observe a carbon project mechanism |
| pollutant, the government will grant economic | | | | in the way they operate. A carbon project |
| incentives to the enterprise as a reward for | | | | pertains to a business program where the |
| reducing pollution released into the environment. | | | | enterprise attempts to reduce its total level of |
| Strangely enough, if an enterprise has surpassed | | | | greenhouse gas emissions so that the company |
| the limit for the emission level of the pollutant, the | | | | will receive funding in return (as a reward, so to |
| enterprise has the option of purchasing "credits" | | | | speak.) Carbon projects are better than simply |
| from other enterprises which have been able to | | | | buying carbon credits because it means the |
| stay well within emission limits. A credit represents | | | | business is attempting to voluntarily cut down on |
| how much emissions an enterprise is permitted to | | | | its greenhouse gas emissions. Some enterprises |
| release into the environment. | | | | choose to adopt a carbon project because they |
| The same principle used in emissions trading has | | | | may have been guilty of surplus emissions in the |
| been set into place through the adoption of the | | | | past, and saw the carbon project mechanism as |
| global Kyoto Protocol carbon credits scheme. | | | | being preferable to paying a carbon tax or buying |
| Carbon credits designates a monetary or financial | | | | carbon credits from other enterprises. (A carbon |
| value to greenhouse gas emissions. For instance, | | | | tax can be perceived as a default penalty to be |
| one credit means the owner of the credit has | | | | paid by the enterprise because it surpassed limits |
| permission to release one tonne of carbon dioxide. | | | | for emissions. |