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Carbon credit

UK //ˈkɑːbən ˈkrɛdɪt//US //ˈkɑrbən ˈkrɛdɪt//

Definition

A market-based permit that allows a company to emit a specific amount of greenhouse gases.

In simple words: A permit allowing a company to produce a certain amount of carbon dioxide.

Examples

  • The company purchased several carbon credits to offset its emissions.
  • Investing in carbon credits can help businesses go green.
  • Governments regulate carbon credits to control pollution levels.
  • Many organizations are now trading carbon credits to meet their sustainability goals.
  • Carbon credits have become a vital part of the global response to climate change.
  • She explained how carbon credits work in terms of emissions reduction.

Usage notes

Used in environmental and economic contexts. Appropriate in formal discussions about climate change and regulations.

Grammar pattern

standalone noun phrase

Memory hint

Think of 'carbon' as the gas and 'credit' as a permission slip to release it.

Collocations

  • buy carbon credits
  • sell carbon credits
  • carbon credit market
  • carbon credit system

Synonyms

  • emission allowance
  • carbon permit
  • carbon trading certificate
  • pollution credit

Common mistakes

  • Confused with 'carbon offset' which is related but different.
  • Using in informal contexts where simpler terms would be better.