DENVER -- Colorado Attorney General John Suthers said since carbon offsetting is relatively new, people need to be cautious before handing over their hard earned money.

"While there's a lot of incredibly well-meaning people trying to deal with offsets, you can bet fraudsters will try to exploit it," Suthers said.

A carbon offset is a financial contribution a person makes to reduce greenhouse gas emissions that lead to global warming.

But environmental experts said many people have a hard time understanding how it works.

"It's confusing the general public on what's legitimate and what's not, so they end up giving up on it cause they don't understand," said Ted Martens with Sustainable Travel International, a company that sells carbon offsets to nonprofits.

He explains that one carbon offset represents the reduction of one metric ton of carbon dioxide.

"So, what offsetting is all about, you go and quantify the amount of energy consumption you are responsible for. Then you can invest in a project that will either remove an equivalent amount of greenhouse gases or prevent the release of greenhouse gases in the future," said Martens.

Renewable energy projects like wind farms and forestry projects are among those that benefit from the funds.

Martens said you also need to make sure there is third party verification before you purchase offsets.

The Governor's Energy Office said it will provide that and a guarantee your money will stay in Colorado, once it launches its carbon offset program this summer.

"The way our program works, which distinguishes it from other programs, is that it invests directly in Colorado programs," said program head Tom Plant.

Plant said the state's effort will be called the Carbon Fund.

"We only focus on energy efficiency and renewable energy programs here in Colorado," he said.

State and private entities urge consumers to be pro-active and reduce their carbon footprint first, by reducing driving and other energy uses, before turning to carbon offsets as an environmental panacea.

Suthers said when purchasing carbon offsets, insist on transparency and third party verification to ensure your money goes to quality projects.

More Information:

Sustainable Travel International
Colorado Carbon Fund