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What Are Carbon Credits? Meaning, How They Work, Types & Examples

02_02_2026_MMCM_Types of Carbon Credit-03

Carbon credits are tradable certificates created to help organizations manage emissions they cannot fully reduce today. One credit equals one metric ton of carbon dioxide equivalent (CO₂e) and comes from verified projects that reduce or remove emissions. Companies buy these credits to offset or inset unavoidable emissions, and each credit is recorded in a registry […]


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