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

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

"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

Restoration projects have historically prioritized environmental outcomes like planting trees to improve biodiversity, or monetizing carbon sequestration through carbon credit schemes.

From Salon • Dec. 5, 2023