Carbon credits or carbon offsets, like plastic credit, allows the buyer/owner to emit a certain amount of carbon dioxide and other GHGs equivalent to the associated purchase or ownership. These allowances have shown empirical results in reducing measurable and verifiable emissions by incentivizing companies, in the form of a monetary compensation, to sell excess carbon credit to other producers.
The concept of carbon credits is based on the "cap-and-trade" model that was used to reduce sulfur pollution in the 1990s.
CAP AND TRADE