S H E A R M A N & S T E R L I N G L L P | 3 7
INSIGHTS
The Rise of Carbon
Offsetting
BY IAIN ELDER AND COLM Ó HUIGINN
In recent times, carbon-intensive sectors in
many parts of the world
1
have been subject to
mandatory programs that: obligate reporting
of greenhouse gas ("GHG") emissions; set
thresholds for permitted emissions; and
enforce compliance using instruments such as
carbon taxes or cap-and-trade. Governments
have also signed on to binding international
treaties
2
which commit them to reducing
their GHG emissions and ultimately achieving
carbon neutrality by 2050.
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