Carbon offsets make good environmental sense because they are a very efficient and cost-effective means of reducing greenhouse gas emissions.

Carbon offsets are an efficient means of reducing emissions because they take advantage of differences in the relative costs of emission reductions. In other words, some emitters can reduce emissions much more cheaply than other emitters; offsets allow these emitters to buy and sell emissions reductions. In effect, offsets enable the “cheaper” reducer to eliminate emissions on behalf of the “more expensive” reducer.

Although offsets cannot “solve” the problem of climate change by themselves, they are an important part of the long-term solution to global warming. Together with on-site emission reductions and reliable greenhouse gas sequestration projects, offsets play a role in combating climate change.

Aside from the obvious benefits of greenhouse gas reductions, offsets can:

• Conserve and improve habitat
• Preserve biodiversity
• Improve watershed health and water quality
• Reduce soil erosion
• Stimulate demand for clean energy products
• Create jobs
• Save businesses and consumers money on energy
• Encourage energy efficiency
• Encourage green technological innovations

Offsets are not an excuse to pollute. Each of us has a responsibility to reduce our emissions and limit our impact on the climate. However, purchasing carbon offsets is one way to compensate for the CO2 pollution you create when driving, flying or using electricity.

Next: Concerns About Offsets