What is the role of offsets in achieving carbon neutrality?

Economics Carbon Trading Questions



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What is the role of offsets in achieving carbon neutrality?

The role of offsets in achieving carbon neutrality is to compensate for the emissions produced by an entity or activity by investing in projects that reduce or remove greenhouse gas emissions elsewhere. Offsets can be achieved through activities such as reforestation, renewable energy projects, or methane capture initiatives. By purchasing offsets, entities can effectively balance their emissions and achieve carbon neutrality by offsetting the carbon dioxide they release into the atmosphere.