As investors and companies increasingly seek to address the risks of climate change, there is growing debate about the use of carbon offsets in achieving net-zero emissions. We think there’s room for a measure of offsets to achieve carbon neutrality, provided best-practices are followed.
Opinions have diverged about what contribution, if any, offsets make to net-zero emissions. Starting with the Kyoto Protocol, regional initiatives have encouraged offsets as building blocks to a standardised international marketplace for them. But some have grown concerned about “carbon indulgences,” where investors can use offsets to burnish their climate credentials without really solving the root problem.
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