Carbon funds are pooled funds that are set up to purchase carbon credits on behalf of companies and other investors. The purpose is to offset carbon emissions by investing in alternative energy sources, energy efficiency projects, and other initiatives that reduce greenhouse gas emissions. This is often done to meet regulatory requirements or to meet sustainability goals.

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Carbon Funds Are

Question 10

Multiple Choice

Carbon funds are:

A) created with a purpose of providing an incentive to increase the efficiency of fuel use.
B) useful for assessing climate impacts and to disclose firms' energy use.
C) set up to stimulate development of the emissions trading market and assist companies and governments to invest in carbon credits.
D) pooled funds set up to purchase carbon credits, usually on behalf of companies and other investors.

Correct Answer: