CONCEPT AND ROLE OF CARBON CREDIT IN THE MODERN ECONOMY: AN ANALYTICAL STUDY

Carbon credits are tradable permits that allow businesses to emit a specific amount of greenhouse gases into the atmosphere, such as carbon dioxide”. These credits are becoming a more important tool in the fight against climate change and the reduction of global carbon emissions. Moreover, carbon credits are important in incentivizing businesses to reduce their carbon footprint by allowing them to offset their emissions through investments in sustainable practices or the purchase of credits from carbon reduction projects in the modern economy. This creates a market-based incentive for businesses to reduce emissions while also encouraging investment in renewable energy and other low-carbon technologies. Furthermore, carbon credits have evolved over time to include a wide range of projects, including renewable energy, energy efficiency, and afforestation. They can be bought and sold on global carbon markets by companies, governments, and individuals. While there are some concerns about the integrity of some carbon offset projects and the possibility of market manipulation, carbon credits remain an important tool for addressing the global challenge of climate change in the modern economy.