What is a carbon offset?



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    A carbon offset is a “financial instrument aimed at a reduction in greenhouse gas emissions.” They are measured in metric tons of carbon dioxide-equivalent (CO2e) and may represent six primary categories of greenhouse gases. “One carbon offset represents the reduction of one metric ton of carbon dioxide or its equivalent in other greenhouse gases.” There are two markets for carbon offsets, larger and smaller, which buy carbon offsets in order to comply with caps on the total amount of carbon dioxide they are allowed to emit.

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