What is a carbon credit?

ˈkɑrbən ˈkrɛdɪt
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The carbon credit system provides an incentive to reduce the emissions of one's own company. First, a company sets an emission cap, which is then reduced periodically. If a company exceeds this limit, it will receive a fine. Unused certificates can be sold to other companies. The certificates provide a market-oriented mechanism for reducing greenhouse gas emissions. The number of overall available credits is reduced over time to reduce global greenhouse gases.

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