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Investigations reveal many low-quality Carbon offset projects, especially in voluntary carbon markets, are not delivering real environmental benefits.
Companies, especially in low-emission industries, are using offsets to meet climate goals, raising questions about greenwashing and the actual impact on global emissions.
With the COP29 summit and new regulatory frameworks being discussed, the future of voluntary carbon markets is under scrutiny.
What is Carbon Offset?
A carbon offset is a payment made by a company or individual to a project that reduces or removes greenhouse gas emissions elsewhere, such as planting trees or developing renewable energy.
The aim is for the offset to counterbalance the emissions produced by the company, contributing to global climate goals.
These offsets are traded in voluntary carbon markets, where companies buy credits to claim they are neutralizing their emissions.
What is Greenwashing?
The term greenwashing was first used in 1986 by Jay Westerveld, an American environmentalist and researcher.
Greenwashing occurs when companies exaggerate or falsely advertise their environmental efforts, often by purchasing cheap or low-quality offsets that don’t result in meaningful climate impact.
Companies use offsets to improve their image and attract investors or customers, without making significant changes to their own operations.
This practice raises doubts about the real contribution of offsets to reducing global emissions and undermines efforts to address climate change effectively.
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