carbon credit

noun

a permit that gives a company, country, etc., the right to emit a specified amount of carbon compounds into the atmosphere, and may be purchased if emissions are expected to exceed a quota or sold if the quota is not reached: Companies can accumulate carbon credits by funding new forest growth.
Compare carbon offsetting.

Words nearby carbon credit

carbon bisulphide, carbon black, carbon brush, carbon capture, carbon copy, carbon credit, carbon cycle, carbon dioxide, carbon dioxide cycle, carbon dioxide snow, carbon disulfide

British Dictionary definitions for carbon credit

carbon credit

noun

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