Carbon Credit

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The terms 'carbon offset' and 'carbon offset credit' (or simply 'offset credit') are used interchangeably, although they can have slightly different meanings. A carbon offset refers to a reduction in GHG emissions - or an increase in carbon storage (e.g. by restoring land or planting trees) - that is used to offset emissions that occur elsewhere. An offset credit is a transferable instrument certified by governments or independent certification bodies that represents an emissions reduction of one tonne of CO2 or an equivalent amount of other greenhouse gases and can be used by businesses or individuals to offset their unavoidable emissions.