Carbon credit accounting, a key component of market-based approaches to climate change, provides a framework for incentivizing reductions in greenhouse gas emissions by assigning monetary value to these reductions. This research paper will provide insights into how carbon credit accounting  can serve as a bridge between economic growth and environmental sustainability  through a sectoral analysis. This research contributes to a deeper understanding of the role of carbon credits in supporting sustainable development and offers insights for optimizing carbon credit mechanisms to benefit both the economy and the environment. It aims to evaluate how carbon credit mechanisms influence economic performance and environmental outcomes across five critical sectors: energy, industry, agriculture, transportation, and forestry.