Question

What do carbon credits signify$?$
$A)$Credits given in the course of carbon products sales.
$B)$Entitlements to emit certain quantity of greenhouse gases
$C)$Permissible amount of carbon dioxide in the atmosphere.
$D)$The extent of carbon required to ensure sustainable development.

Answer 1

Hint: A carbon credit is a term for any tradable certificate or permit representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas. Carbon credits are a component of national and international attempts to mitigate the growth in concentrations of greenhouse gases.

Complete answer:
A carbon credit represents the right to emit a measured amount of greenhouse gases. Carbon credits work as a certification that business or individuals owning them is counterbalancing the emission of greenhouse gases. The ultimate purpose of carbon credits is, therefore, to reduce the emission of greenhouse gases into the atmosphere.
In other words, carbon credits are exchanged in a carbon market, commonly referred to as the cap-and-trade market, where businesses can sell each other’s rights to pollute. The goal is to allow market mechanisms to drive industrial and commercial processes in the direction of low emissions or less carbon intensive approaches than those used when there is no cost to emitting carbon dioxide and other greenhouse gases into the atmosphere.
So, the correct answer is $B)$ Entitlements to emit a certain quantity of greenhouse gases.

Note:
Carbon credits each have their advantages and disadvantages. Credits were chosen by the signatories to the Kyoto Protocol as an alternative to carbon taxes. A criticism of tax-raising schemes is that they are frequently not hypothecated, and so some or all of the taxation raised by a government would be applied based on what the particular nation's government deems most fitting.