You’ve heard the term, but what exactly are carbon credits?
Carbon offsetting is the process of purchasing carbon credits generated by your CO2 absorption projects, to make up for a company or person’s emissions. First, it requires calculating carbon footprint.
Let’s say your company emitted 1,000 tons of greenhouse gases (GHG) last year. To offset this footprint, you’ll need to buy 1,000 carbon credits, each representing 1 ton of CO2 equivalent.
This formula is a relatively simple way to ensure that the world doesn’t emit more than it can absorb.
Once you know what your carbon footprint is, and after you’ve taken measures such as switching to renewable energy or cutting electricity consumption to reduce it, it is time to offset the remaining carbon emissions by purchasing carbon credits.