As global warming/climate change/global temperature rise intensifies, finding solutions to mitigate our carbon footprint becomes paramount. Carbon credits, a key instrument in this fight, offer a market-based approach to incentivize emissions reductions. These tradable permits represent the right to emit a certain amount of greenhouse gases, creat
Understanding Carbon Credits: A Comprehensive Guide
Carbon credits are a mechanism for reducing greenhouse gas emissions. They signify the permission to emit a specific quantity of carbon dioxide or other emissions. Companies that surpass their emission quotas can purchase these credits from companies that have lowered their emissions beneath their assigned limits. This framework creates a economic