carbon credit

[ kahr-buhn kred-it ]

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.

carbon credit

noun

1. a certificate showing that a government or company has paid to have a certain amount of carbon dioxide removed from the environment

Word History and Origins

Origin of carbon credit¹

First recorded in 1990–95

Example Sentences

We’ve also seen repeatedly that the systems humans create to incentivize tree planting or preservation often overcount carbon savings or provide carbon credits for forests that weren’t actually at risk of being cut down.

From MIT Technology Review

That incremental carbon that you create through that project is something that you could monetize with the carbon credit.

From Time

A portion of the carbon credits has been sold to California’s controversial offset market.

From Washington Post

Landowners can receive carbon credits, which they can sell, based on the difference between the amount of carbon stored in their land versus the regional average.

From ProPublica

The Massachusetts Audubon Society, which sold carbon credits that were ultimately purchased by California polluters under the offset program, also issued a statement, available here.

From ProPublica