In the midst of this debate there is talk about different carbon emission reduction strategies such as carbon taxes, cap and trade systems, as well as credits for carbon offsets. The subjects and debates can keep your eyes glued from information overload.
In this article we’d like to focus the carbon offset credits. They are becoming increasingly popular among individuals and businesses and we’ve started to purchase them for some of our clients from Office Interiors.
It is yet to be determined how much impact offset credits will have on your personal life in the coming years as we grapple with how best to control carbon emissions. However you could be surprised by how they can impact your business in the near future.
What are Carbon Offset Credits?
As the business community and governments across the globe develop plans to combat climate change as they develop climate change plans, you’ll start to learn more regarding carbon offset credits. They are credits that represent the offset of carbon emissions from individuals or businesses. Most often, one can obtain credits for investing in projects that help decrease the amount of carbon in our air.
Some companies have been created with the sole aim of helping individual and organizations acquire carbon offset credits. For example, someone who drives to work daily could buy credits to offset the emissions generated by their vehicle. The cash that is spent on these credits goes into eco-friendly projects like tree plantation programs or projects to generate renewable power.
On a wider scale it is not possible for all businesses to adjust their operations quickly and decrease their carbon footprint, so they may opt to reach their environmental goals by buying carbon offsets.
As climate policies from the government come into force, there will be more need to offset carbon emissions as companies strive to comply with regulatory requirements.
The Advantages of Carbon Offset Credits
Now that we have answered “What are carbon offset credits,” it’s time to look at the benefits of using these credits. The primary benefit is the impact that the cash from the purchase of these credits can have on the environment. However, we’d like look a little deeper beyond that.
The biggest benefit that is more than the environmental benefit is its ease of use. Instead of planning significant operational changes, businesses could offset carbon emissions by merely buying credits. With just a few calculations, businesses can swiftly identify the amount of credits required to make their operations zero carbon emitter.
There can also be worth using carbon offset credits. For instance, in some caps and trade systems that businesses can trade or sell them to other businesses who need to offset their carbon emissions. In this sense it is possible for a business to use those as a form of revenue or investment.
Finally, carbon offset credits help businesses adopt positive changes and decrease their carbon footprint. Companies are always looking to make the most money and buying offset credits is an additional expense for the business’ bottom line. Thus, companies may be more likely to make the right adjustments, decreasing the need to purchase credits in order to meet their emission targets.
The downside to Carbon Offset Credits
Carbon offset credits are far from perfect. In some cases, these credits can even be viewed as negative. One of the most obvious negative aspects of the carbon offset is that the credit doesn’t provide a reduction in carbon emissions from the individual or company.
Individuals and organizations are producing carbon emissions, but these emissions are offset by investments elsewhere. Even though this might create a net zero carbon footprint, it is difficult to prove that a plantation operation in a different province or country will reduce the carbon generated by your vehicle.
Additionally, there’s the cost to take into consideration. Small businesses may be more difficult to secure credits as opposed to larger companies with larger operating budgets. It’s not just that getting credits harder on budget, but small businesses also may also have fewer options to make the necessary changes that will reduce their carbon footprint. This could make competition more difficult for new companies.
Do you want to know more about Carbon Offset Credits?
Are you interested in knowing how to access carbon credits and how they could affect your business? Contact our team now for a more in-depth discussion about these credits and how they relate to your business.
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