Carbon credits are a form of currency representing the reduction, avoidance, or removal of one metric ton of carbon dioxide (or its equivalent in other greenhouse gases) from the atmosphere.

The concept behind carbon credits is to create a market-based mechanism to incentivize and support projects that contribute to mitigating climate change. These projects can include activities such as renewable energy projects, reforestation and afforestation initiatives, energy efficiency improvements, and methane capture from waste management systems.

Carbon credit offtakers play a vital role in this mechanism by voluntarily purchasing carbon credits from companies to compensate for their own emissions or to demonstrate their commitment to reducing their carbon footprint. By purchasing carbon credits, these entities effectively offset a portion of their emissions by supporting projects that reduce or remove greenhouse gases elsewhere. This helps to balance their overall carbon emissions and contributes to the transition towards a low-carbon economy.

In summary, a carbon credit offtaker is an entity that purchases carbon credits to offset or compensate for their own emissions, supporting projects that reduce greenhouse gas emissions and combat climate change. (CITE US GOVERNMENT)