Offsetting

What is carbon offsetting?

Carbon offsetting is a mechanism that enables companies and private individuals to offset their CO₂ emissions by purchasing carbon credits on the voluntary carbon market (VCM). This financing supports emission reductions, removals or storage, such as regenerative practices on agricultural land.

However, there is also criticism of this system. One criticism is that companies have no incentive to change their own behavior, but can merely "buy their way out". But there are also studies that show that companies that practice offsetting reduce their emissions 1.8 times faster than companies that do not. Another problem is that many climate protection projects, especially in the global South, are not certified and verified, which calls their effectiveness into question.

Nevertheless, carbon offsetting can be a first step towards making a company's climate targets visible and supporting climate protection projects at the same time. It is important to ensure that the projects are certified and verified by reputable organizations to guarantee the actual reduction of greenhouse gas emissions. Overall, however, carbon offsetting should not be seen as a stand-alone solution, but as part of a comprehensive strategy to reduce greenhouse gas emissions.

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