By Craig Kaiser, LandGate

A carbon credit is a tradable commodity, like a stock, that represents one ton of carbon dioxide that has either been removed from the atmosphere or has been avoided being released into the atmosphere.

Activities that remove carbon from that atmosphere can be quantified and verified in order to generate carbon credits. Those credits can then be sold and transferred to companies or entities who will use them to offset a ton of carbon dioxide that they have produced. Those credits are then “retired” and are no longer able to be sold or transferred.

Read the full article from our partner LandGate.