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

See Examples For:

carbon credit

“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

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

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

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