carbon credit

[kahr-buhn kred-it]

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

noun

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

Word History and Origins

Origin of carbon credit¹

First recorded in 1990–95

Example Sentences

Namnyak, a Maasai herder in north Tanzania, fears a carbon credit scheme linked to Volkswagen -- dismissed by NGOs as "greenwashing" -- could destroy her community's way of life.

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Verra, the main international body that validates carbon credit projects, suspended credits from a major forestry project in Zimbabwe in September, for which Volkswagen was also a client, saying its benefits had been exaggerated.

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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.

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A Verra spokesperson defended carbon credit schemes as "one of the few vehicles that bring sustained investment into rural areas".

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“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.

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