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

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

From Barron's • Nov. 10, 2025

For example a logistics company might be lowering its emission by converting its fleet of trucks to electric, or a tech company might be purchasing a certain type of carbon credit.

From The Wall Street Journal • Sep. 24, 2025

Those conversions earn carbon credit subsidies in the state’s carbon markets.

From Los Angeles Times • Oct. 18, 2024

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

He said the results in the paper have supported new research at CSU with the National Science Foundation to further develop the needed carbon credit methodology with stakeholders.

From Science Daily • Apr. 15, 2024