CARBON CREDITS 101
What Are Carbon Credits?
A carbon credit represents the reduction or removal of one metric tonne of carbon dioxide or equivalent greenhouse gas from the atmosphere.
How Carbon Markets Work
Carbon credits are generated through verified climate projects and traded in carbon markets to help organizations compensate for emissions that cannot yet be eliminated.
Voluntary Carbon Markets — Used by organizations to meet sustainability and net-zero goals
Compliance Markets — Regulated systems mandated by governments
Types of Carbon Credits
Nature-based solutions (forestry, agriculture, ecosystem restoration)
Renewable energy projects
Industrial and technology-based solutions
Why Quality Matters
Not all carbon credits deliver real climate impact. High-quality credits are additional, verified, permanent, and transparent.
Common Misconceptions
Carbon credits are not a license to pollute. They are a tool — when used responsibly — to support climate mitigation alongside emissions reduction.