How does my carbon offset help reduce global warming?
In Europe there are legal requirements to reduce or offset CO2 releases. These “Cap and Trade” rules began in 2005 and allowed that emitters can buy or sell their allocations as they need to support their business. The theory is that this system will help achieve changes in the most market efficient way. Because CO2 effects the entire planet, it doesn’t matter where the CO2 is released or reduced, it all affects the world. At the same time, CO2 sources and the cost of reducing emissions in Africa might cost much less than reducing them in London or L.A. So African emitters might sell their CO2 emissions rights for more than it costs them to reduce the CO2 emissions, while the buyers cost of reducing their emissions is greater than the price they’ve paid for the emissions right. When you purchase offsets for your vehicle, home or business, you are competing with CO2 emitters for a scarce resource. If Pollutco Power needs 1 million more tons of emission rights and 100,000 people from 4Of
