Carbon Credits Definition

Carbon Credits

Carbon Credits are issued by one of the over 900 standards organizations worldwide.  The carbon credit is a permit that allows an entity to produce greenhouse gasses.  If the entity does not produce the allocated amount of greenhouse gasses, then they can sell what is left over to another entity.  A tradeable credit granted to an entity for reducing greenhouse gasses, notably carbon dioxide.  The number of carbon credits are reduced each year with the intent on reduced emissions.