The carbon credit system helps _______.

Concept:
To reduce greenhouse gas(CO2) emissions, address these climate changes and to manage carbon footprints carbon credit system is used as a tool for estimation."A single carbon credit denotes the removal or recycling of one metric tonne of CO2 from the atmosphere.."Additional Information 

• The concept of carbon credits was created by the UNFCCC(United Nations Framework Convention on Climate Change). Monetization of pollution by the means of carbon credit is effectively an environmental tax designed to change human behavior for the better.
• A carbon credit is a certificate that represents the reduction or removal of one tonne of CO₂ from the atmosphere. Carbon credits can be created by different types of projects, such as renewable energy, energy efficiency, forest conservation, or carbon capture and storage.

Types of carbon credit system

• Carbon credits can be classified into two main types: compliance and voluntary.
• Compliance carbon credits are used by entities that have a legal obligation to reduce their emissions under a cap-and-trade system.
• Voluntary carbon credits are used by entities that want to reduce their emissions voluntarily, for ethical, social, or business reasons