carbon credit

American  

[kahr-buhn kred-it] / ˈkɑr bən ˌkrɛd ɪt /

noun

1. a unit of one metric ton of carbon dioxide (or an equivalent mass of other atmospheric pollutants), as enumerated in the tradable permits that regulate atmospheric pollution in a cap-and-trade system.

   Companies can accumulate carbon credits by funding new forest growth.

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carbon credit British  

noun

1. a certificate showing that a government or company has paid to have a certain amount of carbon dioxide removed from the environment

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Etymology

Origin of carbon credit

First recorded in 1990–95

Example Sentences

Verra told AFP it had yet to audit the project in Tanzania, or a competing carbon credit scheme proposed by US-based Nature Conservancy in the same region.

From Barron's • Nov. 10, 2025

“Ballmer was the perfect deep-pocket partner to fund Catona’s flagging operations and lend legitimacy to Catona’s carbon credit business,” says the amended complaint, which has been viewed by The Times.

From Los Angeles Times • Nov. 4, 2025

For example a logistics company might be lowering its emission by converting its fleet of trucks to electric, or a tech company might be purchasing a certain type of carbon credit.

From The Wall Street Journal • Sep. 24, 2025

"Most voluntary carbon credit projects are in India and China, where electricity shortages and coal-related air pollution have incentivized an increase in renewable energy projects like solar and wind," says Fujii.

From Science Daily • May 20, 2024

Restoration projects have historically prioritized environmental outcomes like planting trees to improve biodiversity, or monetizing carbon sequestration through carbon credit schemes.

From Salon • Dec. 5, 2023