{"id":4073,"date":"2025-01-15T06:27:24","date_gmt":"2025-01-15T06:27:24","guid":{"rendered":"https:\/\/ceroed.com\/?p=4073"},"modified":"2025-01-15T06:32:26","modified_gmt":"2025-01-15T06:32:26","slug":"cop29-what-you-need-to-know-2","status":"publish","type":"post","link":"https:\/\/ceroed.com\/index.php\/2025\/01\/15\/cop29-what-you-need-to-know-2\/","title":{"rendered":"Carbon offsets and carbon credits \u2013\u201cwhy\u201d and \u201chow\u201d"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"4073\" class=\"elementor elementor-4073\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-09ceb4b elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"09ceb4b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-94ae679\" data-id=\"94ae679\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bfc66fd elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"bfc66fd\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3a9a882\" data-id=\"3a9a882\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7f35cef elementor-widget elementor-widget-heading\" data-id=\"7f35cef\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.4 - 12-03-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\">Carbon offsets and carbon credits \u2013\u201cwhy\u201d and \u201chow\u201d<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c82c6f7 elementor-widget elementor-widget-image\" data-id=\"c82c6f7\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.4 - 12-03-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" width=\"980\" height=\"603\" src=\"https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp\" class=\"attachment-full size-full wp-image-4078\" alt=\"\" loading=\"lazy\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-00cea3e elementor-widget elementor-widget-text-editor\" data-id=\"00cea3e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.11.4 - 12-03-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#818a91;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#818a91;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>\u201cIf global emissions remain at current levels, the remaining carbon budget to limit warming to 1.5C (with a 50% chance) will be exhausted in the <u>next six years<\/u>.\u201d (<a href=\"https:\/\/globalcarbonbudget.org\/\">Global Carbon Budget<\/a>)<\/p><p>Understanding carbon offsets and credits is an important step for businesses, when navigating the evolving landscape of sustainability, compliance and stakeholder expectations.\u00a0<\/p><p>With increasing global standards for regulatory compliance <em>(read: <\/em><a href=\"https:\/\/ceroed.com\/index.php\/2024\/12\/19\/cop29-what-you-need-to-know\/\"><em>cop29<\/em><\/a><em>)<\/em>, carbon reduction mandates are becoming stricter. Offsets and credits offer a practical way for businesses to mitigate unavoidable emissions and avoid penalties or reputational risks.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-920756a elementor-widget elementor-widget-text-editor\" data-id=\"920756a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p><strong>Carbon offsets<\/strong><\/p><p><a href=\"https:\/\/interactive.carbonbrief.org\/carbon-offsets-2023\/index.html\">Carbon offsets<\/a> are a way for companies to compensate for their GHG emissions by investing in projects that reduce or capture GHG gases elsewhere. They can be bought by companies to decrease their carbon footprint, and can be especially helpful in balancing emissions that are difficult to eliminate.\u00a0<\/p><p><strong>Carbon credits<\/strong><\/p><p><em>\u201cA carbon credit is a tradable instrument (typically a virtual certificate) that conveys a claim to avoid GHG emissions or to the enhanced removal of GHG from the atmosphere.\u201d <\/em>(<a href=\"https:\/\/offsetguide.org\/understanding-carbon-offsets\/what-is-a-carbon-offset\/\">GHG Management Institute, SEI<\/a>)<\/p><p>In simpler terms, it represents one metric ton of CO2 that a company is allowed to emit or has reduced. It is a way of quantifying the carbon emissions that a company offsets.\u00a0<\/p><p>Carbon credits also allow for the establishment of a \u201c<a href=\"https:\/\/www.c2es.org\/content\/cap-and-trade-basics\/#:~:text=In%20a%20cap%2Dand%2Dtrade,market%20establishes%20an%20emissions%20price.\">cap-and-trade system<\/a>.\u201d In this system, the government sets an emissions cap, and companies buy and sell carbon credits to meet that cap.\u00a0<\/p><p><strong>How do they help?<\/strong><\/p><p>Carbon offsets and carbon credits allow for adaptability, oversight and cost savings. They may even be essential when it comes to hard-to-abate emissions, such as those from shipping and steel production, due to the technical and economic complexities involved. Alongside this, they can be used as both short-term and long-term solutions to complement reducing emissions through asset turnover and evolution of company business models.\u00a0<\/p><p><strong>Summary<\/strong><\/p><p>For companies, understanding how to effectively utilize carbon trading mechanisms is no longer just about compliance\u2013 it\u2019s about making use of a strategic opportunity to align with global climate goals, manage costs efficiently, and ensure resilience in an increasingly eco-conscious market. But why stop there?<\/p><p><strong>How can we help<\/strong> &#8211; Whether it comes to strategically enhancing business models to uphold long-term enterprise resilience or using innovative solutions to meet sustainability goals, CeroED\u2019s <a href=\"https:\/\/ceroed.com\/\">#ARRO<\/a> does it all. Our SaaS platform will help you measure, manage, and improve your ESG performance, so that you can remain compliant, competitive, and ultimately, better align with global climate commitments.\u00a0Read more about this at <a href=\"http:\/\/www.ceroed.com\">www.ceroed.com<\/a><\/p><p>Written by: Bhoomika Makwana, CeroED<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-cf0d4cf elementor-section-content-top elementor-section-full_width elementor-section-stretched elementor-section-height-default elementor-section-height-default\" data-id=\"cf0d4cf\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;stretch_section&quot;:&quot;section-stretched&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container 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.elementor-widget-container{line-height:1;font-size:0}.elementor-widget-social-icons:not(.elementor-grid-0):not(.elementor-grid-tablet-0):not(.elementor-grid-mobile-0) .elementor-grid{display:inline-grid}.elementor-widget-social-icons .elementor-grid{grid-column-gap:var(--grid-column-gap,5px);grid-row-gap:var(--grid-row-gap,5px);grid-template-columns:var(--grid-template-columns);justify-content:var(--justify-content,center);justify-items:var(--justify-content,center)}.elementor-icon.elementor-social-icon{font-size:var(--icon-size,25px);line-height:var(--icon-size,25px);width:calc(var(--icon-size, 25px) + (2 * var(--icon-padding, .5em)));height:calc(var(--icon-size, 25px) + (2 * var(--icon-padding, .5em)))}.elementor-social-icon{--e-social-icon-icon-color:#fff;display:inline-flex;background-color:#818a91;align-items:center;justify-content:center;text-align:center;cursor:pointer}.elementor-social-icon i{color:var(--e-social-icon-icon-color)}.elementor-social-icon svg{fill:var(--e-social-icon-icon-color)}.elementor-social-icon:last-child{margin:0}.elementor-social-icon:hover{opacity:.9;color:#fff}.elementor-social-icon-android{background-color:#a4c639}.elementor-social-icon-apple{background-color:#999}.elementor-social-icon-behance{background-color:#1769ff}.elementor-social-icon-bitbucket{background-color:#205081}.elementor-social-icon-codepen{background-color:#000}.elementor-social-icon-delicious{background-color:#39f}.elementor-social-icon-deviantart{background-color:#05cc47}.elementor-social-icon-digg{background-color:#005be2}.elementor-social-icon-dribbble{background-color:#ea4c89}.elementor-social-icon-elementor{background-color:#d30c5c}.elementor-social-icon-envelope{background-color:#ea4335}.elementor-social-icon-facebook,.elementor-social-icon-facebook-f{background-color:#3b5998}.elementor-social-icon-flickr{background-color:#0063dc}.elementor-social-icon-foursquare{background-color:#2d5be3}.elementor-social-icon-free-code-camp,.elementor-social-icon-freecodecamp{background-color:#006400}.elementor-social-icon-github{background-color:#333}.elementor-social-icon-gitlab{background-color:#e24329}.elementor-social-icon-globe{background-color:#818a91}.elementor-social-icon-google-plus,.elementor-social-icon-google-plus-g{background-color:#dd4b39}.elementor-social-icon-houzz{background-color:#7ac142}.elementor-social-icon-instagram{background-color:#262626}.elementor-social-icon-jsfiddle{background-color:#487aa2}.elementor-social-icon-link{background-color:#818a91}.elementor-social-icon-linkedin,.elementor-social-icon-linkedin-in{background-color:#0077b5}.elementor-social-icon-medium{background-color:#00ab6b}.elementor-social-icon-meetup{background-color:#ec1c40}.elementor-social-icon-mixcloud{background-color:#273a4b}.elementor-social-icon-odnoklassniki{background-color:#f4731c}.elementor-social-icon-pinterest{background-color:#bd081c}.elementor-social-icon-product-hunt{background-color:#da552f}.elementor-social-icon-reddit{background-color:#ff4500}.elementor-social-icon-rss{background-color:#f26522}.elementor-social-icon-shopping-cart{background-color:#4caf50}.elementor-social-icon-skype{background-color:#00aff0}.elementor-social-icon-slideshare{background-color:#0077b5}.elementor-social-icon-snapchat{background-color:#fffc00}.elementor-social-icon-soundcloud{background-color:#f80}.elementor-social-icon-spotify{background-color:#2ebd59}.elementor-social-icon-stack-overflow{background-color:#fe7a15}.elementor-social-icon-steam{background-color:#00adee}.elementor-social-icon-stumbleupon{background-color:#eb4924}.elementor-social-icon-telegram{background-color:#2ca5e0}.elementor-social-icon-thumb-tack{background-color:#1aa1d8}.elementor-social-icon-tripadvisor{background-color:#589442}.elementor-social-icon-tumblr{background-color:#35465c}.elementor-social-icon-twitch{background-color:#6441a5}.elementor-social-icon-twitter{background-color:#1da1f2}.elementor-social-icon-viber{background-color:#665cac}.elementor-social-icon-vimeo{background-color:#1ab7ea}.elementor-social-icon-vk{background-color:#45668e}.elementor-social-icon-weibo{background-color:#dd2430}.elementor-social-icon-weixin{background-color:#31a918}.elementor-social-icon-whatsapp{background-color:#25d366}.elementor-social-icon-wordpress{background-color:#21759b}.elementor-social-icon-xing{background-color:#026466}.elementor-social-icon-yelp{background-color:#af0606}.elementor-social-icon-youtube{background-color:#cd201f}.elementor-social-icon-500px{background-color:#0099e5}.elementor-shape-rounded .elementor-icon.elementor-social-icon{border-radius:10%}.elementor-shape-circle .elementor-icon.elementor-social-icon{border-radius:50%}<\/style>\t\t<div class=\"elementor-social-icons-wrapper elementor-grid\">\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-facebook-f elementor-animation-shrink elementor-repeater-item-c29d3e9\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Facebook-f<\/span>\n\t\t\t\t\t\t<i class=\"fab fa-facebook-f\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-instagram elementor-animation-shrink elementor-repeater-item-87d6eb6\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Instagram<\/span>\n\t\t\t\t\t\t<i class=\"fab fa-instagram\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-twitter elementor-animation-shrink elementor-repeater-item-6a089dc\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Twitter<\/span>\n\t\t\t\t\t\t<i class=\"fab fa-twitter\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-linkedin elementor-animation-shrink elementor-repeater-item-f4c24b2\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Linkedin<\/span>\n\t\t\t\t\t\t<i class=\"fab fa-linkedin\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-youtube elementor-animation-shrink elementor-repeater-item-3fd6d21\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Youtube<\/span>\n\t\t\t\t\t\t<i class=\"fab fa-youtube\"><\/i>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Carbon offsets and carbon credits \u2013\u201cwhy\u201d and \u201chow\u201d \u201cIf global emissions remain at current levels, the remaining carbon budget to limit warming to 1.5C (with a 50% chance) will be exhausted in the next six years.\u201d (Global Carbon Budget) Understanding carbon offsets and credits is an important step for businesses, when navigating the evolving landscape [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4078,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"rttpg_featured_image_url":{"full":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp",980,603,false],"landscape":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp",980,603,false],"portraits":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp",980,603,false],"thumbnail":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset-150x150.webp",150,150,true],"medium":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset-300x185.webp",300,185,true],"large":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp",800,492,false],"1536x1536":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp",980,603,false],"2048x2048":["https:\/\/ceroed.com\/wp-content\/uploads\/2025\/01\/carbon-offset.webp",980,603,false]},"rttpg_author":{"display_name":"thampi","author_link":"https:\/\/ceroed.com\/index.php\/author\/thampi\/"},"rttpg_comment":1,"rttpg_category":"<a href=\"https:\/\/ceroed.com\/index.php\/category\/uncategorized\/\" rel=\"category tag\">Uncategorized<\/a>","rttpg_excerpt":"Carbon offsets and carbon credits \u2013\u201cwhy\u201d and \u201chow\u201d \u201cIf global emissions remain at current levels, the remaining carbon budget to limit warming to 1.5C (with a 50% chance) will be exhausted in the next six years.\u201d (Global Carbon Budget) Understanding carbon offsets and credits is an important step for businesses, when navigating the evolving 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