A carbon credit is a tradeable certificate or permit representing the right to emit one metric tonne of carbon dioxide (CO₂) or an equivalent volume of other greenhouse gases. Carbon credits are generated through emissions reduction or carbon sequestration projects — such as renewable energy installations, forestry conservation, or industrial efficiency improvements — and can be traded in regulated compliance markets or voluntary carbon markets. As India advances its net-zero commitments and ESG investing becomes mainstream, carbon credits are increasingly relevant for Indian corporates managing their emissions footprint and for ESG-focused investors on Ventura Securities evaluating companies' sustainability credentials, regulatory risk exposure, and participation in the emerging green economy.