How are voluntary Carbon Markets Changing the Enterprise Carbon Offset?

Voluntary carbon markets are around for a long time now. As greenhouse gas emissions grow, there have been attempts by several companies to mitigate the effects of carbon footprints. Voluntary carbon markets have exploited this scenario. And created a market that has been worth more than $295.7 million.

There are different forms of carbon offsets. These greenhouse gas emission offsets are perfect for business social responsibility activities. They can help companies with a greener image. There are several ways to achieve a reduction in emissions.

Carbon offsets like forestry and land use or waste disposal are all part of carbon credits that firms invest in from the best carbon offsetting companies. While giants like Ford Motor Company and IBM are now investing in such voluntary carbon markets. Let’s understand it better. Carbon offsetting companies also offer carbon footprint calculator to calculate your carbon footprint.

Carbon Financial Products:

There are different carbon financial products offered in any carbon market, whether it’s voluntary or non-voluntary. These products are carbon credits based on different market domains that are offered against investments to reduce carbon footprints. Let’s get to know some of these products.

Retail Carbon Products:

These are carbon offsets targeted towards people with households and SMEs (Small And Medium Enterprise). These products may include house or construction loans for green buildings, private carbon accounts, low-carbon transportation, and even credit cards.

Many authorities around the world have enforced the construction of energy-efficient homes. There are retail banks across the world that offers loans to individuals for carbon credit investments. There are countries that have introduced green credit cards for their citizens to reduce GHG emissions.

Investment-Based Carbon Products:

Investment-based carbon products are aimed at enterprises, governments, and corporations. It offers excellent enterprise carbon offset to different organizations. It offers products like low-carbon financing projects, bonds, and equity-based carbon products. The most common carbon commodities include carbon custody services and carbon credits. There are several market indexes too to measure these commodities.

Asset management Products:

Fiscal green funds and low-carbon development funds are the two most popular asset management products in the carbon financial market. Most carbon funds are devised by government authorities. They are aimed at businesses and individuals with a view of providing carbon credits through banks.

Carbon Insurance Products:

They stimulate carbon emissions reduction through insurance products in carbon evading products. Products such as low-carbon automobile insurance and green building insurance are such examples. There are two types of carbon products that insurance firms offer.

One is offered to individuals in public life. And others are based on the risk of carbon financial price fluctuations. Insurance provided on the enterprise carbon offsets is with high transaction value.

Conclusion:

Voluntary or non-voluntary carbon markets have had quite a traction over the past. And with more firms looking to get carbon financial products to invest in a greener image for their organizations, the market is set to soar further. There are so many options for carbon offsets that can be leveraged by these firms. And then there are several banks and institutions providing carbon financial products for voluntary carbon markets.

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