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A carbon offset is usually referred to as a financial instrument used to offset or build equity against the effects of an individual, business, or entity’s, carbon footprint. Carbon offsets allow us take action against the effects of global warming. Offsetting your carbon footprint supports the reduction of greenhouse gasses thus insuring a cleaner more energy efficient future.
Carbon offsets are very efficient measures in that they allow for the pooling of resources that will have a greater effect than individual measures. For instance, the average person will not be able to build a wind farm in their own back yard but could contribute to the building of a large one in a more appropriate area. With the use of a carbon calculator one would estimate their carbon footprint then choose a carbon reducing project to mitigate it. These contributions are usually tax exempt.
Carbon offsetting as part of a "carbon neutral" lifestyle is gaining appeal and momentum mostly among consumers in western countries who have become aware and concerned about negative environmental effects of unfettered energy use. In an effort to promote carbon offsetting the Kyoto Protocol has sanctioned offsets as a way for governments and private companies to earn carbon credits which can then be traded in the marketplace.
The first most fundamental step however in reducing your carbon footprint can be achieved through simple conservation and reduction of your energy consumption. Carbon offsets typically employed are those involving renewable energy, such as wind farms, biomass energy, or hydroelectric dams and re-forestation projects. Other common products include energy efficiency and reclamation projects.
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