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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.


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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Etymology

Origin of carbon credit

First recorded in 1990–95


Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

See Examples For:

“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 viewed by The Times.

From Los Angeles Times ● Aug. 17, 2026

But concerns about their new habitat, and the suspension of a carbon credit project that had been expected to contribute funding delayed the plan, sources told AFP.

From Barron's ● Jul. 8, 2026

Others have started corn and potato farms, while some earn money through tourism and carbon credit schemes.

From The Wall Street Journal ● May 9, 2026

Department of Energy has stated a goal of seeing carbon credit prices below $100 per metric ton.

From Salon ● Jul. 18, 2024

"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

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