Carbon credits
Carbon credits are permits that allow companies or organizations to emit a certain amount of carbon dioxide or other greenhouse gases. One credit typically represents one metric ton of CO2. If a company reduces its emissions below its allowed limit, it can sell its excess credits to others that need to offset their emissions. This system encourages businesses to lower their carbon footprint and helps combat climate change by making pollution more costly, while providing a market incentive to invest in clean technologies and sustainable practices.
Additional Insights
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Carbon credits are permits that allow organizations to emit a certain amount of carbon dioxide or other greenhouse gases. One credit typically represents one metric ton of CO2. Companies that reduce their emissions can sell their excess credits to those that exceed their limits, creating a financial incentive to lower pollution. This market-based approach aims to encourage environmentally friendly practices and help combat climate change by limiting total greenhouse gas emissions and promoting sustainable developments. The ultimate goal is to reduce the overall impact of human activity on the planet’s climate.