Carbon Credit is a generic term for any tradable certificate or permits representing the right to emit a set amount of carbon dioxide or the equivalent greenhouse gases. Carbon credits are generated from global projects that pull Greenhouse Gases (GHGs) out of the atmosphere or keep emissions from being released. One credit permits the emission of one ton of carbon dioxide or the equivalent of other greenhouse gases. Typically companies that have exceeded their carbon emission limit will be purchasing Carbon Credit to offset the GHG released by the organization.
