The United Nations Climate Change Conference (also known as COP26) was held in Glasgow, Scotland. A commitment to carbon neutrity has been catalyzedTo achieve net zero carbon emissions it is necessary to reduce emissions as much possible and balance remaining emissions by purchasing carbon credits.

Carbon credits are used to reduce, prevent or eliminate carbon emissions from one location. They can also be used as a compensation for emissions that cannot be avoided elsewhere through green-energy certified projects. One ton of carbon emissions reduction is represented by carbon credits. They are 1) Avoidance or reduction projects — e.g., renewable energy (wind, solar, hydro, biogas) — and 2) Removal or sequestration — e.g., reforestation and direct carbon capture, which are aimed at the voluntary carbon market (VCM). Carbon credits can be resold multiple times until it has been retired by the end-user who wants to claim the offset’s impact. Other co-benefits that carbon credits may provide include the creation of jobs, protection from floods and conservation of biodiversity.