Carbon credits are an important tool in the global effort to reduce carbon emissions. They represent a unit of measurement that quantifies the reduction of greenhouse gas emissions. One carbon credit is equal to 1 ton of carbon dioxide equivalent emissions (CO ₂ e). These credits can be bought, sold and traded on the carbon market, incentivizing individuals, businesses and governments to take responsibility for their carbon footprint. Carbon credits are used to reduce carbon footprints. Carbon footprint represents the total amount of greenhouse gases, especially carbon dioxide, emitted directly or indirectly by an individual, organization or product. To achieve net zero and have become carbon neutral, emissions equivalent to the amount of emissions produced must be offset or reduced.