Carbon Credits

A carbon credit represents one metric tonne of CO₂ equivalent that has been reduced, avoided, or removed from the atmosphere. Credits are traded in compliance markets (EU ETS, UK ETS, India CCTS) and voluntary markets (Verra, Gold Standard). Compliance credits are government-issued allowances with legal value; voluntary credits are project-generated certificates. India's Carbon Credit Trading Scheme (CCTS) under the Energy Conservation Amendment Act 2022 creates a new compliance market for designated consumers.