Forest carbon financing, also known as forest carbon credits or carbon offsetting through forests, is a financial mechanism that aims to mitigate climate change by incentivizing the preservation and sustainable management of forests to capture and store carbon dioxide (CO2) from the atmosphere. Forests play a crucial role in sequestering carbon as trees absorb CO2 during photosynthesis and store it in their biomass and soil. When forests are cut down or degraded, this stored carbon is released back into the atmosphere, contributing to greenhouse gas emissions and climate change. Carbon finance has already been widely employed to protect existing forests or improve their management.