Understanding Carbon Credits

What is the primary purpose of a carbon credit?

• To increase the production of greenhouse gases

• To eliminate all carbon emissions

• To permit companies to release a set amount of harmful gases

• To allow companies to emit unlimited greenhouse gases

How can companies benefit financially from carbon credits?

• By buying more credits than needed

• By selling excess credits if they stay below emission limits

• By increasing their emissions

• By ignoring emission regulations

What is one way to obtain carbon credits?

• By ignoring environmental regulations

• By leading projects that reduce emissions

• By planting non-native species

• By increasing greenhouse gas emissions

Why do carbon credits tend to increase in value over time?

• Because they are easy to produce

• Because they are not regulated

• Because the supply of carbon credits is limited

• Because the demand for them decreases

How can farmers earn carbon credits?

• By planting cover crops and reducing tilling

• By using traditional farming methods

• By increasing soil erosion

• By using chemical fertilizers