24 June: Carbon Credits are certificated issued to countries that reduce their emission of Green House Gases (GHG) which causes global warming. Carbon credits are measured in units of certified Emission Reductions (CERs). Each CER is equivalent to one tonne of carbon dioxide reduction.
Developed countries that have exceeded the levels can either cut down emissions, or borrow or buy carbon credits from developing countries. The concept of Carbon Credit has emerged after the Kyoto Protocol.
Forest CreditThe idea of ‘Forest Credit’ can be developed on the lines of ‘Carbon Credit’ for increasing the forest cover in the country.