Carbon Credit
A carbon credit is a license given to a company that mainly emits greenhouse gases in excess. Carbon is one of the major gases responsible for the greenhouse effect. One carbon credit to a company means a company is permitted to emit carbon dioxide of a mass equal to one ton.
The concept of carbon credit was introduced to reduce global greenhouse gas emissions. Companies get a fixed number of carbon credits which declines over time and they have provision to sell excess credits to another company.
Companies that are responsible for pollution are given carbon credits that allow them to pollute to a certain limit and this limit is reduced periodically. The company may sell unused credit or excess credits to the other companies in need. So with this concept, the greenhouse gas emission is controlled along with incentives by selling the carbon credits.
Million Trees and Billion Smiles Foundation has taken an initiative to plant 1000 trees for a company with one carbon credit.