Carbon Offsets

What are?

Carbon bonds are an international mechanism to reduce carbon dioxide emissions that contribute to global warming. These are measured in tons of carbon dioxide equivalent (CO2e) and represent the reduction of one ton of carbon dioxide or its equivalent in other greenhouse gases. The standards include: Clean Development Mechanism of the Kyoto Protocol (CDM), Voluntary Carbon Standard (VCS or Verra), Gold Standard (GS), among others.

No cause of carbon tax

The MADS (Ministerio de Ambiente y Desarrollo Sostenible) established a procedure to achieve an exemption from the INAC (National Carbon Tax). Decree 926 allows industrial and other emitting sectors to achieve certified carbon- neutral status, that is, to offset all the emissions resulting from their use of fuels covered by the tax. In this way, all actors in the fossil fuel value chain, including consumers or end-users can opt to avoid paying the tax, in whole or in part, simply by offsetting their CO2 emissions.

Law 1819 of 2016 – Article 221 – Paragraph 3: “The tax is not imposed on taxpayers who certify to be carbon neutral, in accordance with the regulations issued by the Ministry of Environment and Sustainable Development.”