The increased emission of greenhouse gases like carbon dioxide in the atmosphere has caused worldwide concern because of the extremely harmful effects it has on the environment. Concepts like carbon credits and carbon offset were introduced in order to improve the situation by encouraging firms which are more environment friendly in the manner in which they conduct their operations.

The idea of carbon credits was developed recently. One carbon credit allows discharge of one tonne of CO2 or a corresponding amount of any other greenhouse gas into the air. The overall amount of emissions in the world can be capped through the carbon trading method in which carbon credits can be sold and bought.

Each firm is provided with a permit of carbon credits, which regulates the extent to which it can discharge carbon dioxide and other harmful gases. A company needs to resort to carbon trading when its emissions are more than the levels permitted by its carbon credits quota, in order to purchase credits from those enterprises that have used greener techniques and have spare carbon credits.

As a result, the worldwide carbon emissions stay below prescribed levels, and the firms come up with eco friendly means of conducting business so that their emissions are lower and they are saved from bearing additional expenditure on carbon credits. This system is beneficial for organizations making use of ecologically sustainable methods to keep striving in this respect as they can make more earnings from carbon credits business.

Carbon credits can be purchased easily from a number of firms, just like any other monetary instrument, as they are sold in a free market. In fact, even if you are not representing a company, you can choose to buy carbon credits in order to reduce your carbon footprint. The money you spend in this way is used for sponsoring ecological projects that are running across the globe in order to neutralise the effects of emissions from your activities.