Carbon Credit Trading: How It Works, Key Players, and the Future of Global Emissions Markets
Introduction to Carbon Credit Trading Carbon credit trading is a market-based approach to reducing greenhouse gas (GHG) emissions. Instead of enforcing direct emission cuts, governments and organizations allow businesses to buy and sell carbon credits—essentially placing a price on carbon pollution. Each carbon credit represents one metric ton of CO₂ removed or prevented from entering the atmosphere. Companies that reduce emissions beyond regulatory requirements can sell their surplus credits, while those