Carbon offsetting is a mechanism employed to counterbalance greenhouse gas emissions by investing in projects that reduce the emission of pollutants or remove them from the atmosphere. World Funding is a company committed to environmental conservation and sustainable development, and we do so by actively working towards replenishing degraded areas and plays a crucial role in making carbon offsetting more accessible to the public.
To understand how carbon offsetting works, it is essential to comprehend the concept of carbon credits. Carbon credits represent a quantified reduction, or removal, of one metric ton of carbon dioxide (CO2) from the atmosphere. These credits are generated through projects that reduce emissions or enhance carbon sinks, such as reforestation, renewable energy, energy efficiency, and methane capture. These projects undergo rigorous assessment and verification processes to ensure their credibility and the actual environmental benefits they provide.
Our team focuses on replenishing degraded areas, particularly through reforestation and forest conservation projects. Reforestation involves the planting of trees in areas that have been deforested or have experienced significant tree loss. By investing in reforestation initiatives, World Funding helps restore forest ecosystems, which act as carbon sinks by absorbing and storing CO2 through the process of photosynthesis.
In addition, World Funding supports forest conservation projects that aim to protect existing forests from deforestation or degradation. These projects prevent the release of carbon stored in trees and the associated emissions that occur from logging or land conversion. By preserving intact forests, World Funding ensures the conservation of valuable carbon stocks and the biodiversity they harbor.
Carbon credits generated through reforestation and forest conservation projects are divided into Voluntary Carbon Market (VCM) credits and credits for regulated markets. The VCM represents the market for voluntary carbon offset transactions where individuals, organizations, or governments voluntarily choose to offset their emissions beyond regulatory requirements. This market allows entities to take responsibility for their carbon footprint by purchasing carbon credits to compensate for their emissions.
Regulated markets, on the other hand, involve compliance-based carbon offset programs established by governments or regulatory bodies. These programs set specific emission reduction targets for regulated entities, such as industries or power plants, and allow them to meet their obligations by purchasing carbon credits. The regulations ensure that the offset projects meet specific requirements and contribute to the overall emission reduction goals of the jurisdiction.
World Funding, as a key player in the carbon offsetting landscape, adheres to the rigorous standards and guidelines set by both voluntary and regulated markets. By focusing on reforestation and forest conservation projects, World Funding generates high-quality carbon credits that contribute to the global efforts of reducing greenhouse gas emissions. These credits not only provide a tangible means for organizations and individuals to offset their emissions but also support the restoration of ecosystems, the protection of biodiversity, and the enhancement of local communities’ livelihoods.
We work towards replenishing degraded areas primarily through reforestation and forest conservation projects. By adhering to recognized standards and guidelines, World Funding ensures the credibility and environmental integrity of the carbon credits it generates. Through its efforts, World Funding contributes to mitigating climate change, promoting sustainable development, and fostering a greener and more resilient future.
Important Details
- Carbon credits represent a unit of measurement that represents the reduction or removal of one metric ton of carbon dioxide (CO2) or its equivalent in greenhouse gas emissions. [Source: Investopedia]
- The global carbon credit market was valued at USD 760.28 billion in 2021, which is bigger than giants such as the video-streaming market and is projected to grow at a compound annual growth rate (CAGR) of 21.14% during the forecast period of 2023-2028. [Source: Azoth Analytics]
- In 2020, the compliance carbon market, which includes regulated schemes like the European Union Emissions Trading System (EU ETS), had a trading volume of 9.24 billion metric tons of CO2 equivalent. [Source: State and Trends of Carbon Pricing 2021, World Bank]
- Global carbon pricing revenue in 2021 increased by almost 60 percent from 2020 levels, to around $84 billion. [Source: Global Carbon Pricing Generates Record $84 Billion in Revenue, World Bank]
Sources:
- Azoth Analytics: https://www.reportlinker.com/p06416119/Global-Carbon-Credit-Market-Analysis-By-Market-Type-End-User-By-Region-By-Country-Market-Size-Insights-Competition-Covid-19-Impact-and-Forecast.html?utm_source=PRN
- World Bank:
- Investopedia: https://www.investopedia.com/terms/c/carbon_credit.asp