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

“This is the number one risk with Corsia,” said Ben Rattenbury, VP of policy at carbon credit rating and services provider Sylvera.

From The Wall Street Journal ● Feb. 23, 2026

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

In Vaulted’s case, Frontier, along with Rubicon Carbon, count among the company’s first carbon credit customers, rather than seed funders.

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