The life cycle of a carbon offset is a journey that starts with reducing or removing greenhouse gas emissions and ends with a permanent impact on the environment. Here’s how the process unfolds:

1. Step 1 - Carbon Credit Project Set-Up: Projects aimed at reducing or removing carbon emissions are established and certified by recognized standards to ensure credibility. Each carbon credit represents one tonne of CO₂ reduced or removed from the atmosphere.

2. Step 2 - Carbon Credits Issued: Once the project is verified, carbon credits are issued by standards organizations. Project developers can sell these credits directly to buyers, through exchanges, or pledge them to investors.

3. Step 3 - Credits Put Up for Sale: The issued credits are made available for sale to financial players, individuals, companies, or organizations. These credits can be used to offset CO₂ emissions or held for later resale.

4. Step 4 - Participants Buy/Sell: Market participants, including projects, retailers, and exchanges, buy and sell carbon credits. Buyers may purchase credits to offset their emissions immediately or as an investment for future profit.

5. Step 5 - Credits Bought: When credits are purchased, ownership is securely recorded in electronic registries to ensure that credits cannot be retired more than once. This process guarantees the integrity and transparency of the carbon offset market.

6. Step 6 - Credits Retired: Retiring credits means they are permanently removed from the market, representing a lasting reduction in CO₂ emissions. Once retired, these credits cannot be traded again.

Why Carbon Offsets Matter: Carbon offsets support global emission reduction projects, encourage sustainable practices across industries, and pave the way towards a net-zero future. By understanding their life cycle, individuals and businesses can contribute more effectively to climate action.