List and Briefly Explain the Five Criteria That Should Be

question 21

Essay

List and briefly explain the five criteria that should be satisfied to establish an effective offset system that leads to real emission reductions.

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Definitions:

Compounded Semi-Annually

Interest on an investment is calculated and added to the principal sum of the investment two times a year.

Effective Annual Rate

The real return on an investment after accounting for compounding interest over a year, often differing from the stated nominal rate.

Compounded Monthly

Interest calculation method where interest earned is added to the principal balance each month, affecting future interest calculations.

Rate of Return

The net profit or net loss recorded on an investment within a certain interval, articulated as a percentage of the investment's initial pricing.