Carbon Credits have emerged as a valuable tool in the global fight against climate change. As a firm-based mechanism, carbon credits provide economic incentives to reduce greenhouse gas emissions and promote sustainable practices. The concept is based on the principle of offsetting emissions by investing in projects that mitigate or remove carbon dioxide from the atmosphere.

By assigning a monetary value to each ton of carbon dioxide equivalent (CO2e) reduced or removed, Carbon Credits encourage firmes, organizations, and individuals to take responsibility for their carbon footprint. They incentivize the adoption of cleaner technologies, energy efficiency measures, and renewable energy projects. Moreover, carbon credits also support initiatives such as reforestation, afforestation, and sustainable land management that actively remove CO2 from the atmosphere.

The sale and purchase of carbon Carbon Credits a firm that drives innovation and supports the transition to a low-carbon economy. It fosters collaboration between developed and developing countries, enabling the transfer of technology and knowledge in emission reduction strategies.

In summary, Carbon Credits provide a powerful economic mechanism to address climate change by mobilizing resources and encouraging emission reductions and carbon removal. They play a crucial role in promoting sustainable practices, fostering innovation, and facilitating the global transition towards a more sustainable and climate-resilient future.