In the midst of this debate there is talk about different carbon emission reduction strategies such as carbon taxes caps and trade systems, as well as credits for carbon offsets. The debates and topics can cause your eyes to swell due to the overwhelming amount of information.
In this piece we’ve decided to concentrate specifically on credits for carbon offsets. These credits are getting more popular with businesses and individuals and we’ve even started to purchase them for some of our clients with Office Interiors.
It is yet to be determined how much impact offset credits can have on your daily life in the coming years as we begin to think about how to best reduce carbon emissions. However, you might be amazed at the impact they could have on your business in the near future.
What are Carbon Offset Credits?
When the business community and governments across the globe develop plans to combat climate change and climate change plans, you’ll begin to learn more on carbon offset credit. In simple terms, they are credits that serve as the offset of carbon emissions from either a business or an individual. In general, people can access carbon credits for investing in projects that decrease the carbon emissions in our environment.
Certain companies were created for the sole purpose of aiding individuals and businesses buy carbon offset credit. For instance, a person who commutes to work every day might be able to purchase credits to reduce the carbon emissions of their car. The money that is spent on these credits are invested into environmentally friendly projects such as tree planting programs or projects to generate renewable power.
On a bigger scale it is not possible for all businesses to adapt their operations rapidly and decrease their carbon footprint. Therefore, they might opt to achieve their own environmental targets by buying carbon offsets.
As climate policies from the government come in, there could be a greater need to offset carbon emissions as companies strive to comply with regulatory requirements.
Carbon Offset Advantages Credits
After we’ve the answer to “What are carbon offset credits,” it’s time to examine the advantages of making use of these credits. The primary benefit is the impact that the cash from the purchase of these credits could have on the environment. But, we’d like to go a bit deeper beyond this.
The biggest benefit over the environmental aspect is the ease of use. Instead of making major operations changes, companies are able to offset carbon emissions simply by purchasing credits. By making a few simple calculations, companies can quickly figure out how many credits are required to make their business an net carbon-free polluter.
There is also benefits to carbon offset credits. In some cap and trade programs companies are able to trade or sell these credits to other companies that require offset their carbon consumption. In this way the company can use them as an alternative to income or investment.
In the end, carbon offset credits encourage businesses to take positive steps to reduce the carbon footprint of their operations. Companies are always looking to increase profits, and buying offset credits adds expense for the business’ bottom line. Thus, companies may be more inclined to make the necessary changes, thus reducing the need to purchase credits to meet their emission targets.
The downside of Carbon Offset Credits
Carbon offset credits aren’t ideal. Some people believe that these credits could be considered negative. One of the most obvious negative aspects of the carbon offset credits is the fact that it doesn’t actually reduce carbon emissions for the person or company.
Individuals and organizations are emitting carbon emissions, however the emissions are offset by investments elsewhere. Although this could create a net zero carbon footprint, it’s difficult to prove that planting trees in a different country or province can reduce the carbon emissions produced by your car.
Also, there is the cost to take into consideration. Smaller businesses might have a harder time attempting to obtain credits as opposed to larger companies that have larger operating budgets. In addition, obtaining credits is more costly on the budget, but smaller businesses might also have less resources to implement changes to reduce the carbon footprint of their business. This can make competition challenging for companies that are just starting out.
Are you interested in learning more about carbon offset credits?
Are you interested in learning more about the ways carbon offset credits can impact your business? Contact us today to have a deeper discussion about the credits available and their implications for your business.
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