Question
Incentives given to industrial undertaking for reduction
in emission of GHGs (Green House Gases) are called?Solution
Carbon Credits are incentives given to industrial undertaking for reduction in emission of GHGs (Green House Gases), including carbon dioxide, by switching over to wind and solar energy or installation of energy-efficient machinery. The Kyoto Protocol commits certain developed countries to reduce their GHG emissions and for this they will be given carbon credits. A reduction in emissions entitles the entity to a credit in the form of a Certified Emission Reduction (CER) certificate.
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