Gopal Chandu
What are carbon credits
Carbon credits are a type of tradable permit that represent the right to emit one metric ton of carbon dioxide (CO2) or other greenhouse gases. They are used as a means of reducing greenhouse gas emissions and combating climate change.
There are two main types of carbon credits:
Compliance carbon credits: These credits are used by governments and companies to meet their emissions reduction targets under various climate change agreements, such as the Kyoto Protocol.
Voluntary carbon credits: These credits are bought and sold by companies and individuals who want to offset their own carbon emissions or invest in emission reduction projects.
Carbon credits can be bought and sold on various carbon markets, such as the European Union Emissions Trading System (EU ETS) and the Chicago Climate Exchange (CCX). The price of carbon credits is determined by supply and demand, and can fluctuate based on factors such as the market demand for credits and the costs of emission reduction projects.
Gopal Chandu
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