A tradable good that certifies that a certain amount of GHG emissions was avoided or removed. By buying a carbon credit, a company or individual finances the project reduction or removal project and compensates - or offsets - their own emissions.

The practice of replacing one type of fuel with another to achieve cost savings or reduce environmental impact (such as switching from using coal to gas for electricity generation).

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specific time frame.