Carbon offsetting is the act of mitigating ("offsetting") greenhouse gas emissions. A well-known example is the purchasing of offsets to compensate for the greenhouse gas emissions from personal air travel.

Source: EarthTrends Environmental Essay Competition Winner
Author: Rohit Jindal
Editor: Tom Damassa and Stephanie Hanson
Date: June 2006

Introduction

Carbon credits are a tradable permit scheme. They provide a way to reduce greenhouse gas emissions by giving them a monetary value. A credit gives the owner the right to emit one tonne of carbon dioxide. Carbon credits are generated as the result of an additional carbon project.