Carbon credits are a vital tool in achieving global climate goals, particularly those outlined in the Paris Agreement. The Paris Agreement sets out a practical and long-term plan to guide all nations toward reducing global greenhouse gas (GHG) emissions substantially to limit the global temperature increase in this century to 2 degrees Celsius while pursuing efforts to limit the increase even further to 1.5 degrees Celsius. They function by incentivising emission reductions and channelling financial support towards sustainable projects. By placing a monetary value on carbon emissions, carbon credits encourage organisations to minimise their environmental impact and invest in cleaner technologies. These credits also enable the funding of projects, such as renewable energy initiatives, reforestation efforts, and methane capture, which are essential for mitigating climate change. In essence, carbon credits facilitate the transition to a low-carbon economy and contribute to achieving net-zero emissions targets.