An authorization to release a certain quantity of carbon dioxide or other greenhouse gases is known as a Carbon Credit. One credit allows for the release of one tonne of carbon dioxide, or its equivalent in other greenhouse gases. Carbon credits are created through government-regulated cap and trade programs, which put a limit on emissions and create allowances for companies that exceed it. The goal is to reduce overall emissions by creating a market for buying and selling these credits.The use of carbon credits has been growing in recent years as countries work to meet their commitments under the Paris Agreement on climate change. In addition, there has been an increase in private sector investment in projects that generate carbon credits, such as renewable energy projects and forest conservation initiatives. This growth is due, in part, to new standards being developed for how carbon credits can be used to offset emissions from aviation and shipping.There are many benefits associated with using carbon Credits . They provide an incentive for companies to reduce their emissions , help level the playing field between polluting industries and those who invest in clean technologies ,and create jobs in clean tech sectors . Additionally they play an important role in mitigating climate change by reducing global CO2 levels in environment.