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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

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Word History and Origins

Origin of carbon credit1

First recorded in 1990–95

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