Carbon offset is helping to protect the world from the catastrophic effects of ecological degradation and global warming by its mission to reduce carbon emissions in big industries and manufacturing entities, as well as at a personal level.

The release of hazardous greenhouse gases into the atmosphere is counter balanced by the carbon offset concept through the use of renewable and cleaner energy sources, reforestation schemes and various other green initiatives. The carbon credits plan of the 2005 Kyoto Protocol, an international environmental treaty ratified by 170 nations in 2005 fixes the emission limits for countries, which further determines permissible emissions by industrial units.

The Protocol makes it mandatory for commercial entities emitting more than the allowed limit of carbon dioxide to bring down their emissions to safe levels, or they must purchase carbon credits certificates which can be transacted in the market, or alternatively pay a charge for the emissions, which is known as carbon tax. Carbon credits, which were introduced prior to carbon offset, are the most preferred and cheap option for manufacturing businesses emitting more than the allowed limit of greenhouse gases, with one credit equivalent to 1000 kilograms of carbon dioxide emitted into the air. Both multinational and local firms, to make their activities carbon neutral and enhance their image before customers and investors, are increasingly purchasing carbon credits.

Another innovative instrument, carbon offset, has paved the way for an excellent financial opportunity, especially in the developing countries, as the scheme provides adequate financing for green projects that are created to help decrease the overall carbon footprint on the planet. It greatly aids in promoting renewable and eco-friendly energy alternatives like tidal energy and wind energy, and in financing projects on nature conservation and reforestation.

Even individuals are increasingly making use of the carbon offset scheme to reduce their carbon footprint and are advocating this method to others as well. Carbon offset can be easily purchased online through one of the several providers, but caution must be taken to ensure that your funds are invested in the correct projects.

Although carbon offset is a great alternative we should also keep in mind that we need to go a step further by making small environment friendly decisions in our everyday lives. Minor steps like switching off electrical devices and appliances when not in use, substituting fossil fuels by cleaner ones like biodiesel, and using LED lighting and low-energy bulbs can go a long way in decreasing global emissions.

Carbon offset is not yet a familiar word for an average person. Imparting relevant knowledge of the idea will go a long way in ensuring a healthy and clean environment.