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What is a key characteristic of carbon offsets?

  1. They always increase energy costs

  2. They eliminate CO2 emissions from another source

  3. They are only applicable to residential properties

  4. They require no certification

The correct answer is: They eliminate CO2 emissions from another source

A key characteristic of carbon offsets is their ability to effectively eliminate CO2 emissions from another source. The concept behind carbon offsets involves investing in environmental projects that reduce greenhouse gas emissions, such as renewable energy projects, reforestation, or energy efficiency improvements. By purchasing carbon offsets, an individual or organization compensates for their own emissions by supporting these external projects, resulting in a net-zero impact on the environment. This characteristic is crucial in the context of achieving sustainability goals and contributes to global efforts in combating climate change. For instance, if a company emits a certain amount of CO2 through its operations, it can purchase carbon offsets equivalent to that amount from verified projects that will reduce or capture CO2 elsewhere. The other options do not capture the essence of what carbon offsets are designed to achieve. Carbon offsets do not necessarily lead to increased energy costs, are not restricted to residential properties, and typically require some form of certification to ensure that the projects funded are legitimate and will result in actual emissions reductions.