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A carbon offset is a financial instrument aimed at a reduction in greenhouse gas emissions.
In the larger, compliance market, companies, governments, or other entities buy carbon offsets in order to comply with caps on the total amount of carbon dioxide they are allowed to emit.
In the smaller, voluntary market, individuals, companies, or governments purchase carbon offsets to mitigate their own greenhouse gas emissions from transportation, electricity use, and other sources.
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Last update: Sunday, November 9, 2014 12:24:03 PM EST - edit