The Voluntary Carbon Market was created in the 1990s with the goal of driving financial resources to activities that reduce greenhouse gas (GHG) emissions. This solution allows companies to achieve carbon neutrality by complementing internal CO2 emissions reductions/avoidances, as a first necessary step, with the purchase of carbon offset credits. These credits compensate the CO2 emissions that could not be reduced/avoided by the company at that time, and hence achieve carbon neutrality.
This market was controversial years ago because deviations led to greenwashing projects. Since 2017, the market developed best practices, methodologies, and standards ensuring compliance and quality.
There are 4 types of offset projects in many countries around the globe:
- Renewable energies
- Energy efficiency
- Degradation or deforestation protection (REDD+)
- Carbon absorption