Carbon credit: A tradeable certificate representing one tonne of CO2 or carbon dioxide equivalent (CO2e) avoided, reduced or removed.
Note 1: The majority of carbon credits currently traded are emissions reduction credits.
Note 2: Carbon credits are commonly purchased to offset the GHG emissions of the purchasing entity. An entity can also choose to retire a carbon credit without using it as an offset.
Source: The State of CDR, 2nd Edition