Home > Term: carbon credit
carbon credit
One carbon credit allows a business operating within an emissions trading scheme to emit one tonne of CO2. A firm that manages to reduce its carbon emissions to the extent that it does not require all its credits can sell the surplus to other firms who need to exceed their own cap. See emissions trading for more details.
- Part of Speech: noun
- Industry/Domain: Natural environment
- Category: Climate change
- Company: BBC
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Creator
- Jessehe
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