Definition; A Carbon credit is a generic term meaning that a value has been assigned to a reduction or offset of greenhouse gas emissions. Carbon credits and markets are key components of national and international attempts to mitigate the growth in concentrations of greenhouse gases (GHGs). .
- wikapedia

Definition; A certified carbon dioxide emission displacement credit, supposed to be equal to one ton of CO2 removed from the environment
- wiktionanary

Definition;  A permit that allows the holder to emit one ton of carbon dioxide. Credits are awarded to countries or groups that have reduced their green house gases below their emission quota. Carbon credits can be traded in the international market at their current market price.
-Investopedia

The carbon credit system was ratified in conjunction with the Kyoto Protocol. Its goal is to stop the increase of carbon dioxide emissions. . The US has not signed this agreement yet; however a lot of Fortune 500 companies are starting the practice of buying and selling carbon credits. Bank of America is a leader in carbon-reduction strategies. The bank recently launched a $20 billion, 10-year initiative to finance emission-reduction projects, invest in green technology, and facilitate carbon-credit trading.

For example, if an environmentalist group plants enough trees or grass to reduce emissions by one ton, the group will be awarded a credit. A general rule for “tree planting” the tree has to remain in place growing for 80 years.

If a steel producer has an emissions quota of 10 tons, but is expecting to produce 11 tons, it could purchase this carbon credit from the environmental group. The carbon credit system looks to reduce emissions by having companies honor their emission quotas and incentives for being below them.

A carbon footprint is the total amount of greenhouse gases produced to directly and indirectly support human activities, usually expressed in equivalent tons of carbon dioxide (CO2).

In other words: When you drive a car, the engine burns fuel which creates a certain amount of CO2, depending on its fuel consumption and the driving distance. (CO2 is the chemical symbol for carbon dioxide). When you heat your house with oil, gas or coal, then you also generate CO2. Even if you heat your house with electricity, the generation of the electrical power may also have emitted a certain amount of CO2. When you buy food and goods, the production of the food and goods also emitted some quantities of CO2.

Your carbon footprint is the sum of all emissions of CO2 (carbon dioxide), which were induced by your activities in a given time frame. Usually a carbon footprint is calculated for the time period of a year.

The CO2 carbon credit is also referred to as our carbon footprint and each of us has one.  Some examples are;

• Travel by public transportation (train or bus) a distance of 6.5 to 7 miles
• Drive with your car a distance of 3.75 miles (assuming 39 mpg)
• Fly with a plane a distance of 1.375 miles.
• Operate your computer for 32 hours (60 Watt consumption assumed)
• Production of 5 plastic bags
• Production of 2 plastic bottles
• Production of 1/3 of an American cheeseburger (yes, the production of each cheeseburger emits 7 pounds of CO2!)

In housing, a typical 2500 sqft home emits 12,000 pounds of CO2 a year. If one person lives in it, their carbon footprint is 12000 pounds, if 4 people live in that home, then each person has a carbon footprint of 3,000 pounds. In the 1800′s a familys’ (7-8 members) total carbon footprint was 3,500 pounds or 500 pounds per person.  In the medium- and long term, the carbon footprint must be reduced to less than 4,409 pounds CO2 per year and per person. This is the maximum allowance for a sustainable living.

When a company’s manufacturing process emits over a quota of C02 emissions, it can purchase a carbon credit to offset this; or when a company ships products further than 500 miles(out of its green zone), it can buy a carbon credit.

Tiny Green Cabins motto is to create a gentler carbon footprint.   We do this by purchasing material from within our green zone, when possible; by using recycled and reclaimed materials; by recycling our waste; by using manufactured products; by using engineered products; by practicing energy conservation; by building small; by building durable; and by planting trees.