Carbon credit trading

Carbon credit trading is a market-based system designed to reduce greenhouse gas emissions. Companies or countries that emit less carbon dioxide than their allowed limit can sell their excess "credits" to those that exceed their limits. Each credit typically represents one ton of CO2 emissions. This creates a financial incentive for reducing emissions, as lower polluters can profit from their efficiency. The overall goal is to encourage investment in cleaner technologies and promote sustainable practices to combat climate change while providing flexibility for businesses to meet regulatory targets.