Carbon credits are permits that allow the holder to emit a specific amount of carbon dioxide or other greenhouse gases. They are part of a market-based approach to controlling pollution by providing economic incentives for reducing emissions. One carbon credit typically represents the right to emit one metric ton of carbon dioxide or its equivalent in other greenhouse gases.
These credits can be bought and sold in carbon markets, where organizations that exceed their emission reduction targets can sell their extra credits to those who need to comply with emission limits. This system encourages companies to invest in cleaner technologies and methods to reduce their carbon footprint, thereby helping to mitigate climate change. Overall, carbon credits aim to cap overall emissions while incentivizing reductions where it is most cost-effective.
India’s Path to Sustainable Growth With climate change being a pressing global issue, India is setting ambitious targets for reducing greenhouse gas emissions. The nation aims to lower its GDP…