American English

Definition of carbon credit noun from the Oxford Advanced American Dictionary


    carbon credit

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  1. 1a key element in the system of national and international emissions trading. A country or organization has the right to produce a particular amount of carbon dioxide and other gases that cause global warming, which is expressed in terms of carbon credits, which may be traded between countries or organizations The sale of carbon credits can finance renewable energy projects.
  2. 2a carbon offset, which a person or company may choose to buy as a way of reducing the level of carbon dioxide for which they are responsible Wind energy companies sell carbon credits to consumers.
See the Oxford Advanced Learner's Dictionary entry: carbon credit