ABSTRACT
Anthropogenic activities contribute to the increase of carbon emissions resulting in climate change. Under Article 1 of the Kyoto Protocol, industries and major businesses contribute squarely to high carbon footprint through their emissions, processes and supply chain. Under different international regulations, treaties and agreements such as UNFCC, Kyoto Protocol and Paris Agreement, carbon credit and its trade-in green businesses and investment have been duly highlighted. As the business world has a fair share in the increasing greenhouse gas emissions, it must be flexible in zero carbon emissions through their organizational operations and supply chains. The advocacy of green businesses through carbon credit is sustainable innovation. It refers to purposeful trade that maximizes profit by operating in an environmentally friendly manner due to the inherent policies and strategies. The Kyoto Protocol birthed by the UNFCCC had flexible mechanisms that have targeted global carbon emissions and its drastic reduction. These are Joint Implementation (JI), Clean Development Mechanism (CDM) and Emission Trading. It is under these mechanisms that the carbon credit concept emerged. A carbon credit is thus a tradable permit or certificate that provides the holder of the credit the right to emit one ton of carbon dioxide or an equivalent of another greenhouse gas. Two types of carbon credit exist; they are voluntary emission reduction (VER) and certified emission reduction (CER). There is no doubt that carbon crediting is such a vital strategy in the global climate mitigation agenda. Therefore, a rigorous framework on carbon policy is required to facilitate businesses' sustainable operation through green investments and innovations in all supply chains.
