Certified Carbon Credits from the Government of Costa Rica
What Is a Carbon Credit? A carbon credit is a permit that allows the company that holds it to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of a mass equal to one ton of carbon dioxide.
Benefits and challenges The advantages of carbon offsets may outweigh their challenges. For example, imagine a company trying to switch from a process that emits a lot of CO2 to a carbon-free, but expensive, technology. If the company can issue a carbon offset for each ton of CO2 its new technology keeps out of the air, selling these offsets may help finance the investment. This principle can also apply at a national, regional, or sectoral level. Countries, states or industries with targets to reduce their emissions may buy offsets from other countries, states, or industries where greenhouse gas reduction is cheaper. This can make it cheaper overall for the world to meet its emissions targets.