Companies that pollute are awarded credits that allow them to continue to pollute up to a certain limit.
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Carbon Credit Definition of carbon dioxide or other greenhouse gases. One credit permits the emission of a mass equal to one ton of carbon dioxide. The carbon credit is one half of a so-called "cap-and-trade" program. <span>Companies that pollute are awarded credits that allow them to continue to pollute up to a certain limit. That limit is reduced periodically. Meanwhile, the company may sell any unneeded credits to another company that needs them. Private companies are thus doubly incentivized to reduce gre Summary
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