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

Others have started corn and potato farms, while some earn money through tourism and carbon credit schemes.

From The Wall Street Journal • May 9, 2026

Verra, the main international body that validates carbon credit projects, suspended credits from a major forestry project in Zimbabwe in September, for which Volkswagen was also a client, saying its benefits had been exaggerated.

From Barron's • Nov. 10, 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