For those unfamiliar with the topic, the carbon offset marketplace is not the easiest system to understand. For starters, there are two different carbon offset mechanisms, compliance and voluntary.
Compliance markets are created and regulated by mandatory national, regional, or international carbon reduction legislation. Many aviation companies are mandated to comply with compliance carbon credit schemes, known as carbon allowances. This means that companies are allowed to emit a specified amount of greenhouse gases (GHG). If these companies exceed their allocated amount, they must purchase carbon allowances to balance out their extra emissions
Alternatively, voluntary markets operate outside of compliance markets. Voluntary carbon offsetting markets allow companies and individuals to purchase carbon offsets on a voluntary basis under no obligation or mandate. To learn what a carbon offset is click here. To learn why a company may want to invest in carbon offsetting click here. In voluntary markets, the purchaser of the carbon offset can choose to hold on to, trade, or “retire” the credit. If retired, the purchaser can claim the offset as a part of their reduction towards their own GHG emissions.
To learn more about how Azzera can help your company achieve net zero in compliance or voluntary markets, please visit: https://azzera.com/