Carbon credits

Carbon credits are tradeable certificates (usually virtual) that represent the right to emit one metric ton of carbon dioxide or its equivalent in other greenhouse gases. Businesses and governments buy them to offset emissions they can’t directly reduce, helping meet environmental targets or legal obligations.

In the travel industry, carbon credits play a growing role in sustainability programs. Airlines, hotels, and tour operators often participate in offset initiatives by investing in reforestation, renewable energy, or carbon capture projects. For example, airlines may use credits as part of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) established by ICAO to help reduce aviation’s environmental impact.

Carbon credit programs support sustainable tourism by promoting accountability and encouraging lower-carbon travel options such as eco-friendly accommodations and optimized flight operations.