EXPLAINER: Carbon 'offsets' for World Cup in Qatar

WASHINGTON (AP) — Qatar has said the upcoming soccer World Cup will be the first to be ‘carbon-neutral.' In theory, that means the monthlong tournament hosted by the small Gulf Arab nation will have a trivial effect on the climate. It's a bold claim for a country that spent the past 12 years building seven new stadiums, hotels, high-rises and roads for the event.

Key to Qatar's plan are carbon offsets intended to cancel out the greenhouse gases emitted before and during the tournament.

A look at how carbon credit arrangements work.

WHAT ARE CARBON OFFSETS?

Companies, governments and individuals buy offsets, or allowances, to reduce their carbon footprints. The basic idea behind the multibillion-dollar market is that emissions from polluting human activities can be counteracted elsewhere, using farming practices that store carbon, planting trees, or by preventing the escape of climate-changing gases from equipment.

Allowances, credits and offsets all refer to the same thing. One offset corresponds to one metric ton of carbon dioxide that is avoided, removed or absorbed.

Offsets have rapidly grown in popularity with governments using them to reach climate goals, companies incorporating them into ‘net-zero’ plans, and individuals buying them to cancel out climate pollution from air travel.

There are two kinds of offset markets: voluntary and mandatory, or compliance. Individuals and companies purchase credits on the voluntary market while governments use compliance or cap-and-trade schemes to set legally binding limits on carbon emissions for industries like oil, transportation, electricity and landfills. Companies or other entities have a choice: They can pollute less, or they can spend money and buy credits in compliance markets — such as the European Union Emissions...