Carbon credits are a key component of carbon trading and carbon offset programs, which are designed to reduce greenhouse gas (GHG) emissions and combat climate change. The basic concept revolves around assigning a monetary value to a certain amount of greenhouse gas emissions reduced or removed from the atmosphere. One carbon credit is typically equal to one metric ton of carbon dioxide (CO2) or its equivalent in other greenhouse gases. The carbon credits market size was valued at $2 billion in 2022 and is estimated to reach $143.5 billion by 2032, growing at a CAGR of 55.5% from 2023 to 2032.