carbon credit

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

noun

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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Origin of carbon credit

First recorded in 1990–95
Dictionary.com Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2020

British Dictionary definitions for carbon credit

carbon credit

noun

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