For an entity (like a farmer or forest owner) to sell credits, they must follow a rigorous certification path:
: Regulated by "cap-and-trade" laws where governments set an emissions limit. Companies that emit less than their allowance can sell excess "permits" to those exceeding their limit.
Carbon Credits: What They Are, How They Work, and Who Buys Them
Buying and selling carbon credits is a market-based strategy used to reduce global greenhouse gas emissions. A single carbon credit represents the removal, avoidance, or sequestration of (or its equivalent) from the atmosphere. 🏗️ How the Market Operates Carbon trading occurs within two primary frameworks:
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