The carbon credit system was ratified in the Kyoto Protocol. His goal is to stop the rise ofcarbon dioxide. For example, if an environmentalist group plants enough trees to reduce emissions by one tonne, the group is awarded a loan. If a steel producer has an emissions quota of 10 tonnesexpected, but to produce 11 tons, it can purchase these credits from the environmental group. The carbon credit system looks to reduce emissions by countries with their emissionquotas and incentives to reduce them below.
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