What is Carbon Credits?
A tradable certificate representing the reduction or removal of one metric ton of carbon dioxide equivalent (CO2e) from the atmosphere.
Carbon credits are a core component of national and international emissions trading schemes. They provide a financial incentive for companies to reduce renewable greenhouse gas emissions. One carbon credit equals one ton of carbon dioxide, or the equivalent amount of a different greenhouse gas, reduced, sequestered, or avoided. Once a credit is used to offset emissions, it is retired and can no longer be traded.