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FYI, China already owns 43% of the Carbon Credits at the UN.

http://en.wikipedia.org/wiki/Carbon_credit
Carbon credits are measured in units of certified emission reductions (CERs). Each CER is equivalent to one ton of carbon dioxide reduction. India has emerged as a world leader in reduction of greenhouse gases by adopting Clean Development Mechanisms (CDMs) in the past two years.

Developed countries that have exceeded the levels can either cut down emissions, or borrow or buy carbon credits from developing countries.

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http://www.mst.dk/transportuk/pdf/Danishcarbon%20brochure.pdf
Buying Your Carbon Credits

Excerpt:

Carbon Funds
Choose from three fund facilities managed by
EcoSecurities-Standard Bank, the World Bank or
NEFCO. These facilities offer different
combinations of financing and carbon contracts
that meet the needs of many project hosts and
developers.

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http://www.global-change.com/articles/Carbon_Credits_from_Renewable_Energy_2006-0917.pdf
Carbon Credits from Renewable Energy

Excerpt:

Renewable Energy Credits
RECs are a potential financial enhancement for renewable energy projects in many U.S. states which have
developed and mandated Renewable Energy Portfolio Standards (RPS). Renewable Portfolio Standards require
that certain percentage of a utilities overall, or new generating capacity, or energy sales must be derived from
renewable resources. RECs are tradable units that represent the commodity formed by the environmental
attributes of a unit of renewable energy from the underlying electricity. Under most programs, one REC would
be equivalent to the environmental attributes of one MWh (Mega Watt Hour) of electricity from a renewable
generation source. Many of the states in the U.S. have adopted some sort of Renewable Portfolio Standard and
some state utility commissions or electric utilities issue Requests for Proposals for the development of new
renewable projects to meet their RPS commitment. RECs do not have a uniform certification process like CERs
and different States in the United States have developed different standards to define what are considered
eligible REC attributes and who owns the RECs. Thus, while RECs can be an important project financial
enhancement or medium for investment, careful attention is required to the distinct rules of the various
governing states or regions.
Kyoto Protocol and Clean Development Mechanism
The Kyoto Protocol requires industrialized countries that signed the Protocol, called Annex B countries, to
achieve certain greenhouse gas (GHG) emission reduction targets during the first commitment period, 2008 to
2012. The Kyoto Protocol established the Clean Development Mechanism (CDM) under the auspices of the
United Nations Framework Convention on Climate Change (UNFCCC) in December 1997. CDM was
established to facilitate the implementation of greenhouse gas (GHG) emission reduction projects, and lower the
cost for emission reductions for industrialized countries, while at the same time assisting developing countries
in achieving technology transfer and sustainable development.

(snip)

http://css.snre.umich.edu/css_doc/CSS05-20.pdf

Excerpt:

Market-Based Instruments
Market-based approaches include emission taxes, tradable carbon permits, and subsidies.

In a tradable carbon permit system, permits equal to an allowed level of emissions are distributed to each party. Parties with emissions below their allowance are able to sell their excess permits to other parties that have exceeded their emissions allowance.

Tradable permit systems are recognized for their potential to cost-effectively reduce emissions. Already, companies are trading permits on the Chicago and European Climate Exchanges.

NOTE, that above doc is from the EPA, even the the URL is hosted on a university server. The EPA has more on the site about permits being developed for carbon emmissions.