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

“This is the number one risk with Corsia,” said Ben Rattenbury, VP of policy at carbon credit rating and services provider Sylvera.

From The Wall Street Journal • Feb. 23, 2026

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.

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

But, she added, buyers in the carbon credit market can’t definitively claim that they’ve offset their carbon emissions.

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