Carbon credits are a key component of carbon trading and emissions reduction strategies. They represent a measurable reduction of greenhouse gas emissions, such as carbon dioxide, achieved by a company, organization, or individual.

 

Each carbon credit typically equals one ton of carbon dioxide (or its equivalent in other greenhouse gases) that has been prevented from entering the atmosphere or removed through carbon sequestration activities. These credits can be bought, sold, or traded on carbon markets, providing financial incentives for emission reduction efforts.

 

By participating in carbon credit programs, businesses and entities can offset their own emissions by investing in projects that reduce or capture an equivalent amount of greenhouse gases elsewhere, thus contributing to global efforts in combatting climate change and promoting sustainable practices.