The article discusses how carbon emissions, mainly from burning fossil fuels and land clearing, contribute to climate change. To counter this, the concept of carbon credits was introduced under the Kyoto Protocol. Carbon credits act as permits allowing the emission of a specific amount of greenhouse gases. Each credit equals a reduction of one tonne of CO2. This system enables trading of environmental services, like removing greenhouse gases, forming a new economic activity. Currently, carbon credits are trading at around $9.5 to$10 per metric ton. Projects like JI and CDM help feed into the carbon market, with a growing need for millions of additional credits globally. Countries can invest in new technologies or opt to buy carbon credits for their emissions instead.