ELI5: Explain Like I'm 5

Carbon credits

Carbon credits are a way of making sure that the amount of carbon dioxide (CO2) in the air is kept in balance. It works by making sure that companies that put out too much CO2 into the air (like factories and power plants) have to buy credits from companies that are reducing their CO2 footprint. That way, the companies that are reducing their CO2 don't need to pay, and the companies that are producing too much CO2 have to pay for their pollution. The money from the credits helps pay for things like clean energy and forests that absorb CO2 from the air. It also gives companies an incentive to reduce their CO2 emissions, so we can all help make the world a cleaner place.
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