Carbon offsets are investments in projects that keep carbon out of the atmosphere by reducing carbon emissions, avoiding carbon emissions, or sequestering (capturing and storing) carbon.

Some offset projects generate electricity by means that don't produce emissions, or increase energy efficiency in order to use less electricity. Other projects capture the greenhouse gas methane emanating from livestock waste, landfills, or abandoned mines before it can reach the atmosphere. Trees store carbon as part of their wood and roots, so reforestation or improved forest management can sequester carbon. There are other types of offsets as well.

Each offset (sometimes called a carbon credit) represents 1 metric ton (2,205 pounds) of emissions reduced or avoided.

Cloverly uses offset projects that are registered, which means that an independent third party has verified their claims. The projects have what's called "additionality," which means they're not something that would have happened anyway without the offset funding.

Offsets are traded in markets, just like other investments, and their prices vary according to a number of factors. For example, some investors like projects closer to home, and because there are more investors in developed countries such as the US, their interest tends to drive up the cost of offsets from those countries.

Cloverly has published several blog posts with more details about carbon offsets. You can find those posts by clicking here, herehere, and here.

You can find the full list of Cloverly's offset projects and an interactive map showing their locations at the Cloverly Offset Projects page.

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