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

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.

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

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

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