What is a Carbon Credit?

A carbon credit is a tradable certificate that certifies that one tonne of CO2 has been reduced, avoided, or removed from the atmosphere. 
 
Carbon credits will play a big role in the fight against climate change as nations and corporates are struggling to reduce their own emissions. 
 
But they should be used with caution. Companies are advised to reduce their own emissions as much as possible, before resorting to carbon credits. 
 
Companies that have a net zero emission should use carbon removal credits, credits that permanently stores CO2 in the ground. 
 
Only these type of carbon credits can counterbalance any remaining emissions that a company may have.