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title
Understanding Carbon Credits: A Comprehensive Guide
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Understanding Carbon Credits: A Comprehensive Guide Carbon credits are essential tools in the global effort to combat climate change. These certificates allow companies to emit a specific amount of greenhouse gases (GHGs), typically one tonne of CO2 or its equivalent, within regulated limits. As the world moves toward reducing emissions, the number of available carbon credits decreases annually, ensuring a steady reduction in overall emissions. Key Points About Carbon Credits Market-Oriented Mechanism Carbon credits are part of a market-driven approach designed to reduce GHG emissions. They provide a system of allowances that help control emissions, with each company's permitted emissions declining over time. Reduction Over Time Each carbon credit represents one tonne of CO2 equivalent (tCO2e), the unit used to measure greenhouse gas emissions. The number of credits allocated to companies is reduced every year, typically by 2-3%, to encourage continual emissions reductions. Carbon Off...
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