Carbon Credit
Definition
A Carbon Credit is a convertible and transferable instrument representing GHG emissions that have been reduced, avoided or removed through projects that are verified according to recognised quality standards.
Carbon credits can be issued from projects within (sometimes referred to as insets) or outside an undertaking’s value chain (sometimes referred to as offsets).
Carbon credits can be bought by countries as part of their NDC strategy, by corporations with sustainability targets, and by private individuals that want to compensate for their carbon footprint.
The supply of carbon credits comes from private entities or governments that develop programmes to reduce or remove emissions. These programmes are certified by a third party and registered under a carbon market standard.
