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With regard to 'Carbon credit', consider the following statements:
1. These are credits awarded for greenhouse emissions reduced or removed from the atmosphere from an emission reduction project,
2. The carbon credit system was ratified in conjunction with Kyoto Protocol.
Which of the statements given above is/are correct?
1 only
2 only
Both 1 and 2
Neither 1 and 2
A carbon credit (often called carbon offset) is a credit for greenhouse emissions reduced or removed from the atmosphere from an emission reduction project, which can be used, by governments, industry or private individuals to compensate for the emissions they are generating. Thus, a “Carbon Credit” is, a unit of measure, the credit given to someone or an entity if they reduce their GHG emissions (CO2equivalents) by 1 unit. This is the flexibility mechanism provided through Clean Development Mechanism (CDM) under Kyoto Protocol i.e. The carbon credit system was ratified in conjunction with the Kyoto Protocol.
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