Carbon credits are a tradable permit scheme. It is a simple, non-compulsory way to counteract the greenhouse gasses that contribute to climate change and global warming. Carbon credits create a market for reducing greenhouse emissions by giving a monetary value to the cost of polluting the air. The Carbon Credit is this new currency and each carbon credit represents one tonne of carbon dioxide either removed from the atmosphere or saved from being emitted. Carbon credits are also called emission permit. Carbon credit is in the Environment and Pollution Control subject. Carbon credits are certificates awarded to countries that are successful in reducing emissions of greenhouse gases.

Carbon credits are generated as the result of an additional carbon project. Carbon credits can be created in many ways but there are two broad types:

Sequestration (capturing or retaining carbon dioxide from the atmosphere) such as afforestation and reforestation activities.

1. Carbon Dioxide Saving Projects such as use of renewable energies
2. These credits need to be authentic, scientifically based and Verification is essential. 

Carbon credit trading is an innovative method of controlling emissions using the free market.

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