We support businesses seeking to reduce their negative climate impacts. We offer access to high-standard—realistic, measurable and tested—carbon projects bringing the economy closer to climate neutrality.
What are voluntary carbon markets, and why are they important?
Voluntary carbon markets (VCMs) are a decentralized marketplace where private entities buy and sell carbon credits, representing certified removal of greenhouse gases from the atmosphere. Carbon credits mean any tradable certificate or permit representing the right to emit a certain amount of carbon dioxide or equivalent amount of other greenhouse gases.
Currently, most VCM projects are based on methods set by various standards. They can vary depending on many factors, such as the project location, rules, or parameters. But all the standards require offsets to meet the following assumptions:
Voluntary carbon projects are carried out in 83 countries around the world and can be traded between buyers and sellers within these countries.
Challenges for companies related to carbon offsets
Achieving climate neutrality is a key challenge for enterprises. So the first priority is to reduce greenhouse gas emissions as much as possible. However, due to the nature of production or logistics, it is not possible to reduce them to zero. This means that under current national and international legislation, the entity will still have to pay for emission allowances.
But the organization can achieve climate neutrality (net zero) by balancing emissions. The tool in such cases is carbon offsets.
Any entity can invest in projects that reduce emissions in various locations around the world. Each project has a specific reduction value and produces a specific number of offsets. By purchasing offsets, the buyer reduces emissions elsewhere, at their origin. Although the buyer still produces emissions from its own operations, it contributes to further reductions on a global scale.
What will you gain from careful investment in carbon offsets?
KPMG’s support in the area of carbon offsets
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