This Book gives a clear idea about concept of carbon credit or Carbon Trading. Since from last decade carbon emission has become a noteworthy matter. The concept of carbon credits came into existence as a result of increasing awareness of the need for controlling emission and is formed under the ‘Kyoto Protocol’ is an international agreement linked to the UNFCCC. Carbon Credit is like a Permit that allows an entity to emit a specified amount of greenhouse gases. One credit is equal to 1 tonne of CO2 reduced. It introduces a new form of commerce: the carbon trade is a new economic activity involves the buying and selling of “environmental services” including the removal of greenhouse gases from the atmosphere. The Book also explains the two project-based mechanisms such as Joint Implementation and Clean Development Mechanism which feed the carbon market.