The ultimate goal of carbon credits is to reduce the emission of greenhouse gases into the atmosphere. As noted, a carbon credit represents the right to emit greenhouse gases equivalent to one ton of carbon dioxide. According to the Environmental Defense Fund, that is the equivalent of a 2,400-mile drive in terms of carbon dioxide emissions.
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Companies or nations are allotted a certain number of credits and may trade them to help balance total worldwide emissions. “Since carbon dioxide is the principal greenhouse gas,” the United Nations notes, “people speak simply of trading in carbon.”