What is the difference between carbon credits and Certified emissions rate?

Answer 1

Certified emission rates are a limit on the amount of emissions a company can release into the atmosphere within a given time frame. It is a cap on the emissions itself.

Carbon credits looks more at the net carbon emissions. There are companies that plant trees, which reduce the amount of carbon in the air. For their good deeds, they get carbon credits, which they sell to companies that emit carbon. The carbon credits work to offset the actual amount of emissions a company puts out.

Note that carbon credits cancel out the emissions, but don't lower emissions at all, unlike a cap on emission rates.

Answer 2

Carbon credits are tradable units representing a reduction of one tonne of carbon dioxide emissions, while a certified emissions rate measures the amount of greenhouse gas emissions produced per unit of output or activity. In other words, carbon credits are a mechanism to offset emissions, whereas a certified emissions rate quantifies emissions relative to production.