Carbon credits, defined as tradable certificates representing the reduction or removal of one ton of carbon dioxide equivalent (CO2e) emissions, stand as a key instrument in the arsenal of climate solutions.
This innovative mechanism provides a tangible and market-driven way to incentivize sustainable practices and facilitate emissions reduction. These certificates empower businesses and nations to navigate the path toward a low-carbon future by actively participating in initiatives that mitigate or capture greenhouse gas emissions.
When businesses invest in projects that effectively reduce emissions, they earn these tradable certificates. By doing so, they contribute not only to environmental preservation but also play a pivotal role in fostering a dynamic market for sustainable development.