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Carbon credits are tradable certificates or permits representing the right to emit one tonne of carbon dioxide or the equivalent amount of a different greenhouse gas. Carbon credits are used to offset emissions and can be both purchased voluntarily, or, in some cases, their purchase is mandated by law.
Farmers and landowners may want to tap into additional financial arrangements linked to rewetting or restoring peatlands by capitalising on the environmental services (e.g. related to carbon sequestration or water protection/flood control) generated by their practices.