Carbon credits are a type of offset that can balance out emissions from businesses and other entities. One carbon credit is equivalent to one metric ton of carbon dioxide, or CO2. Credits can be bought and sold on exchanges, and businesses can use them to offset their emissions. Carbon credits have become increasingly popular in reducing greenhouse gas emissions. They offer a way for companies to mitigate their environmental impact. There are two main types of carbon credits: voluntary and compliance.
Any government body does not regulate voluntary credits. Businesses often use them to offset their emissions or support projects that reduce greenhouse gas emissions.
On the other hand, government bodies regulate compliance credits. They are often used to meet emission targets set by these organizations. Carbon credits can be a valuable tool in the battle against climate change. They offer a way for businesses to reduce their environmental impact.