Carbon credits represent worldwide attempts at reducing the concentration of green house gases in the atmosphere. One carbon credit represents one ton of carbon. Carbon credits consist of two ideas: first to try and stop the harmful green house gases from reaching the atmosphere and second to reduce the already existing greenhouse gases in the atmosphere.
A carbon offset is a financial instrument aimed at a reduction in greenhouse gas emissions. Carbon offsets 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. By purchasing carbon offsets, one can help funding a project that prevents one ton of greenhouse gases from being emitted for each ton that have been caused. Carbon offset providers sell the greenhouse gas reductions associated with projects like wind farms or methane-capture facilities to customers who want to offset the emissions they caused by flying, driving, or using electricity. Sometimes, offsets may be cheaper or more convenient alternatives to reducing one's own fossil-fuel consumption.
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