Treasury Today Country Profiles in association with Citi

Carbon offsetting

Carbon offsetting is the voluntary mitigation of greenhouse gas emissions. Companies that aim to become carbon neutral will buy carbon credits generated by emissions reducing projects to offset their own emissions. While the voluntary market for carbon credits has grown exponentially, claims of improper or opaque practices in this unregulated market have become more pronounced. In this article we outline some of the criticisms of carbon offsetting and discuss how organisations may ensure that the emission reductions they finance are real, verifiable and sustainable.

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