Rampant deforestation, clearing out trees for commercial purposes, reportedly releases more carbon dioxide into the environment than all the trucks and cars in the world. According to an article in Scientific American, when trees are cut down, they release the carbon they're storing to the atmosphere; as a result, the carbon mingles with greenhouse gases and contribute to global warming. Despite the negative impact of deforestation, around 13 million hectares of woodland are reportedly cut down every year for wood products and land development.
Luckily, habitat restoration projects are available to replenish forests damaged by deforestation. Reforestation pertains to the planting of trees, shrubs, as well as grasses native to a forest land in an effort to restore it to its original state. Aside from helping the environment, investing in reforestation projects, marketed by companies like the UK-based Emerald Knight, are also beneficial financially.
By investing in reforestation projects, companies can earn carbon credits. In socially responsible investment (SRI) terms, a carbon credit represents the amount of greenhouse gas a business can emit in business operations; one credit is equivalent to one tonne of carbon dioxide. Just like stocks, carbon credits are very valuable and can be sold and traded.
Aside from carbon offsetting schemes, reforestation investments also have some tax benefits, depending where you live. According to Investopedia, the United States' internal revenue service (IRS) offers a variety of tax credits for certain businesses that the organization wants to promote. This includes environmental projects like oil recovery as well as reforestation.
By far the biggest benefit of reforestation investments is still their positive effects to the environment. Future generations will be grateful knowing that efforts were made to minimize the impact of global warming for their benefit. Ultimately, the advantages of taking up such an endeavor go beyond financial gain.
There was a time when making money and supporting environmental causes were not thought to be mutually exclusive. Now, investors just need to find the right project marketed by companies like the UK-registered Emerald Knight to make that difference for the world at large and earn a profit at the same time. For more information regarding reforestation and SRI, feel free to browse through wisegeek.com/what-are-the-different-types-of-habitat-restoration.htm as well as http://www.wisegeek.com/what-is-socially-responsible-investing.htm.
The Benefits of Reforestation Investments Marketed by Emeral