A Carbon Credit is a new financial commodity equivalent to one metric ton of Carbon Dioxide. Credits are awarded to countries, groups or businesses that have reduced their green house gases below their emission quota. Carbon credits can be traded in the international market at their current market price.

Carbon credits are a key component of national and international attempts to reduce global warming by mitigating the growth in concentrations of greenhouse gases (GHGs). There are two distinct types of Carbon credits: Carbon Offset Credits (COC's) and Carbon Reduction Credits (CRC's). Carbon Offset Credits consist of clean forms of energy production (wind, solar, hydro) and bio-fuels. Carbon Reduction Credits consists of the gathering and storage of Carbon from the atmosphere through reforestation, forestation, ocean and soil collection and storage efforts. Both methods are effective ways to reduce the Global Carbon Emissions.

There are many companies that sell carbon credits to commercial and individual customers who are interested in lowering their carbon footprint on a voluntary basis. These carbon offsetters purchase the credits from an investment fund or a carbon development company that has combined the credits from individual projects. The quality and value of the credits is based in part on the integrity and validation process of the fund or development company that acted as the sponsor to the carbon project.