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Carbon offsets have a positive affect on global warming because it reduces the amount of carbon emissions that are released into the world's air. If one find ways to reduce the carbon emissions in the world, it will help to control global warming.

The best way to pursue this investment option would be to buy shares of stock directly in companies that sell carbon offsets, which are a privatized form of carbon credits. If a project can quantify and repeatedly produce less greenhouse gases than the current alternative, it will be eligible to earn carbon credits.

When one buy an offset, it's retired, meaning it can never be sold again. Almost 90 percent of all offsets are certified under one standard or another, according to most recent report in the market. For the most direct exposure to the voluntary carbon markets, purchasing carbon credit futures, such as European union allowance futures are viable opt

Following are the benefits of carbon offsetting:Ecosystem management, forest preservation, sustainable agriculture, and renewable energy generation in third-world countries.Count towards internal reduction goals, unavoidable emissions, and scope value-chain emissions.Provides market demand signals to a commodity that has historically been undervalu

Carbon offsets are intended to make it easier and more cost-effective for organizations to pursue the second option. CO2 is the most abundant GHG produced by human activities, and the most important pollutant to address for limiting dangerous climate change.

Carbon credits create a monetary incentive for companies to reduce their carbon emissions. Those that cannot easily reduce emissions can still operate, at a higher financial cost. Carbon credits are based on the "cap-and-trade" model that was used to reduce sulfur pollution in the 1990s.