a key element in the system of national and international carbon 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.
Example:
- The sale of carbon credits can finance renewable energy projects.
a 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
Example:
- Wind energy companies sell carbon credits to consumers.