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Companies get a set number of credits, which decline over time. They can sell any excess to another company.
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Carbon Credit Definition
of carbon credits is to reduce the emission of greenhouse gases into the atmosphere. Key Takeaways Carbon credits were devised as a market-oriented mechanism to reduce greenhouse gas emissions. <span>Companies get a set number of credits, which decline over time. They can sell any excess to another company. Thus, "cap-and-trade" is an incentive to reduce emissions. As noted, a carbon credit is equal to one ton of carbon dioxide. According to the Environmental Defense Fund, that is the equi


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