An Ultimate PDF Guide on Carbon Credit A carbon credit is a tradable permit or certificate that provides the holder of the credit the right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas – it is essentially an offset for producers of such gases. The main goal for the creation of carbon credits is the reduction of emissions of carbon dioxide and other greenhouse gases from industrial activities to reduce the effects of global warming. For Complete Market Insights, Access the Link: https://lnkd.in/ddS67BcP Carbon credit is a mechanism for the minimization of greenhouse gas emissions. Governments or regulatory authorities set the caps on greenhouse gas emissions. For some companies, immediate reduction of emissions is not economically viable. Therefore, they can purchase carbon credits to comply with the emission cap. A carbon offset that is exchanged in the over-the-counter or voluntary market for credits is referred as Voluntary Emissions Reduction (VER). Whereas, emission units (or credits) created through a regulatory framework with the purpose of offsetting a project’s emissions is called as Certified Emissions Reduction (CER). The main difference between the two is that there is a third party certifying body that regulates the CER as opposed to the VER.