For example, if an environmentalist group plants enough trees to reduce emissions by one ton, the group will be awarded a credit. If a steel producer has an emissions quota of 10 tons, but is expecting to produce 11 tons, it could purchase this carbon credit from the environmental group. The carbon credit system looks to reduce emissions by having countries honor their emission quotas and offer incentives for being below them.
Nowadays people progress of technology more than the past but people use it without care. Without paying attention, people damage to the world by releasing carbon dioxide emissions. Human-induced climate change is an important new stress, particularly on ecological and socio-economic systems that are already affected by pollution, increasing resource demands, and non-sustainable management practices. So they have to invent a lot of technology to solve the problem. I think the idea of carbon credit is good to solve this problem. The carbon credit system was ratified in conjunction with the Kyoto Protocol. Its goal is to stop the increase of carbon dioxide emissions.