Carbon credits are transferable financial instruments that represent one metric ton of carbon dioxide (or other greenhouse gas equivalent) that is reduced/avoided or removed from the atmosphere. Carbon credits are generated by projects that are certified by carbon standards, and they can be sold, bought, and traded in carbon markets. Because reduction and removal activities have different roles to play in decarbonization, there’s a growing trend to distinguish between carbon reduction credits and carbon removal credits.
See also Carbon Offsets
