diff --git a/contracts/carbon-credit/src/events.rs b/contracts/carbon-credit/src/events.rs
new file mode 100644
index 0000000..280b02b
--- /dev/null
+++ b/contracts/carbon-credit/src/events.rs
@@ -0,0 +1,36 @@
+use soroban_sdk::{Env, Address, Symbol, symbol_short, i128};
+
+pub fn emit_initialized(env: &Env, admin: Address) {
+    env.events().publish(
+        (symbol_short!("carbon"), symbol_short!("init")),
+        admin,
+    );
+}
+
+pub fn emit_carbon_registered(env: &Env, invoice_id: Symbol, credits: i128) {
+    env.events().publish(
+        (symbol_short!("carbon"), symbol_short!("reg")),
+        (invoice_id, credits),
+    );
+}
+
+pub fn emit_invoice_linked(env: &Env, invoice_id: Symbol, wallet: Address, credits: i128) {
+    env.events().publish(
+        (symbol_short!("carbon"), symbol_short!("link")),
+        (invoice_id, wallet, credits),
+    );
+}
+
+pub fn emit_carbon_verified(env: &Env, invoice_id: Symbol) {
+    env.events().publish(
+        (symbol_short!("carbon"), symbol_short!("verify")),
+        invoice_id,
+    );
+}
+
+pub fn emit_credits_redeemed(env: &Env, wallet: Address, amount: i128) {
+    env.events().publish(
+        (symbol_short!("carbon"), symbol_short!("redeem")),
+        (wallet, amount),
+    );
+}
diff --git a/contracts/carbon-credit/src/lib.rs b/contracts/carbon-credit/src/lib.rs
new file mode 100644
index 0000000..1213f0b
--- /dev/null
+++ b/contracts/carbon-credit/src/lib.rs
@@ -0,0 +1,127 @@
+#![no_std]
+
+use soroban_sdk::{contract, contractimpl, symbol_short, Address, Env, Symbol, Vec, i128};
+
+mod events;
+mod storage;
+mod types;
+
+pub use events::*;
+pub use storage::*;
+pub use types::*;
+
+#[contract]
+pub struct CarbonCreditContract;
+
+#[contractimpl]
+impl CarbonCreditContract {
+    pub fn initialize(env: Env, admin: Address) {
+        admin.require_auth();
+        storage::set_admin(&env, &admin);
+        emit_initialized(&env, admin);
+    }
+
+    pub fn register_invoice_carbon(
+        env: Env,
+        invoice_id: Symbol,
+        credits: i128,
+        source: Symbol,
+    ) -> Result<(), Error> {
+        let admin: Address = storage::get_admin(&env)?;
+        admin.require_auth();
+
+        assert!(credits > 0, "credits must be positive");
+
+        let record = CarbonRecord {
+            invoice_id: invoice_id.clone(),
+            credits,
+            source,
+            timestamp: env.ledger().timestamp(),
+            verified: false,
+        };
+
+        storage::store_carbon_record(&env, &invoice_id, &record);
+        emit_carbon_registered(&env, invoice_id, credits);
+
+        Ok(())
+    }
+
+    pub fn link_invoice_credits(
+        env: Env,
+        invoice_id: Symbol,
+        wallet: Address,
+    ) -> Result<i128, Error> {
+        let record = storage::get_carbon_record(&env, &invoice_id)
+            .ok_or(Error::NotFound)?;
+
+        storage::link_wallet_credits(&env, &wallet, record.credits);
+        emit_invoice_linked(&env, invoice_id, wallet, record.credits);
+
+        Ok(record.credits)
+    }
+
+    pub fn get_wallet_total_credits(env: Env, wallet: Address) -> i128 {
+        storage::get_wallet_credits(&env, &wallet).unwrap_or(0)
+    }
+
+    pub fn verify_carbon_record(env: Env, invoice_id: Symbol) -> Result<(), Error> {
+        let admin: Address = storage::get_admin(&env)?;
+        admin.require_auth();
+
+        let mut record = storage::get_carbon_record(&env, &invoice_id)
+            .ok_or(Error::NotFound)?;
+
+        record.verified = true;
+        storage::store_carbon_record(&env, &invoice_id, &record);
+        emit_carbon_verified(&env, invoice_id);
+
+        Ok(())
+    }
+
+    pub fn get_carbon_record(env: Env, invoice_id: Symbol) -> Result<CarbonRecord, Error> {
+        storage::get_carbon_record(&env, &invoice_id)
+            .ok_or(Error::NotFound)
+    }
+
+    pub fn list_wallet_credits(env: Env, wallet: Address, limit: u32) -> Vec<CarbonRecord> {
+        storage::list_wallet_records(&env, &wallet, limit)
+    }
+
+    pub fn redeem_credits(
+        env: Env,
+        wallet: Address,
+        amount: i128,
+    ) -> Result<(), Error> {
+        wallet.require_auth();
+
+        let current = storage::get_wallet_credits(&env, &wallet)
+            .ok_or(Error::InsufficientFunds)?;
+
+        assert!(amount <= current, "insufficient credits");
+
+        let remaining = current - amount;
+        storage::update_wallet_credits(&env, &wallet, remaining);
+        emit_credits_redeemed(&env, wallet, amount);
+
+        Ok(())
+    }
+}
+
+#[derive(Clone, Debug)]
+pub enum Error {
+    NotFound,
+    InsufficientFunds,
+    Unauthorized,
+    InvalidAmount,
+}
+
+impl From<Error> for soroban_sdk::Error {
+    fn from(err: Error) -> Self {
+        match err {
+            Error::NotFound => soroban_sdk::Error::from_contract_error(1),
+            Error::InsufficientFunds => soroban_sdk::Error::from_contract_error(2),
+            Error::Unauthorized => soroban_sdk::Error::from_contract_error(3),
+            Error::InvalidAmount => soroban_sdk::Error::from_contract_error(4),
+        }
+    }
+}
diff --git a/contracts/carbon-credit/src/storage.rs b/contracts/carbon-credit/src/storage.rs
new file mode 100644
index 0000000..ccf9c07
--- /dev/null
+++ b/contracts/carbon-credit/src/storage.rs
@@ -0,0 +1,62 @@
+use soroban_sdk::{Env, Address, Symbol, Vec, symbol_short, i128};
+use crate::{CarbonRecord, Error};
+
+const ADMIN_KEY: &str = "admin";
+const CARBON_RECORDS_PREFIX: &str = "carbon_";
+const WALLET_CREDITS_PREFIX: &str = "wallet_";
+
+pub fn set_admin(env: &Env, admin: &Address) {
+    env.storage().instance().set(&symbol_short!("admin"), admin);
+}
+
+pub fn get_admin(env: &Env) -> Result<Address, Error> {
+    env.storage()
+        .instance()
+        .get(&symbol_short!("admin"))
+        .ok_or(Error::NotFound)
+}
+
+pub fn store_carbon_record(env: &Env, invoice_id: &Symbol, record: &CarbonRecord) {
+    let key = format!("carbon_{}", invoice_id.to_string());
+    env.storage().persistent().set(&Symbol::new(env, &key), record);
+}
+
+pub fn get_carbon_record(env: &Env, invoice_id: &Symbol) -> Option<CarbonRecord> {
+    let key = format!("carbon_{}", invoice_id.to_string());
+    env.storage()
+        .persistent()
+        .get(&Symbol::new(env, &key))
+}
+
+pub fn link_wallet_credits(env: &Env, wallet: &Address, amount: i128) {
+    let key = format!("wallet_{}", wallet.to_string());
+    let current = env.storage()
+        .persistent()
+        .get::<Symbol, i128>(&Symbol::new(env, &key))
+        .unwrap_or(0);
+
+    env.storage()
+        .persistent()
+        .set(&Symbol::new(env, &key), &(current + amount));
+}
+
+pub fn get_wallet_credits(env: &Env, wallet: &Address) -> Option<i128> {
+    let key = format!("wallet_{}", wallet.to_string());
+    env.storage()
+        .persistent()
+        .get(&Symbol::new(env, &key))
+}
+
+pub fn update_wallet_credits(env: &Env, wallet: &Address, amount: i128) {
+    let key = format!("wallet_{}", wallet.to_string());
+    env.storage()
+        .persistent()
+        .set(&Symbol::new(env, &key), &amount);
+}
+
+pub fn list_wallet_records(env: &Env, wallet: &Address, limit: u32) -> Vec<CarbonRecord> {
+    let mut records = Vec::new(env);
+    // Implementation would iterate through storage with prefix matching
+    // Simplified for this example
+    records
+}
diff --git a/contracts/carbon-credit/src/types.rs b/contracts/carbon-credit/src/types.rs
new file mode 100644
index 0000000..487490e
--- /dev/null
+++ b/contracts/carbon-credit/src/types.rs
@@ -0,0 +1,29 @@
+use soroban_sdk::{Symbol, contracttype, i128};
+
+#[contracttype]
+#[derive(Clone, Debug)]
+pub struct CarbonRecord {
+    pub invoice_id: Symbol,
+    pub credits: i128,
+    pub source: Symbol,
+    pub timestamp: u64,
+    pub verified: bool,
+}
+
+#[contracttype]
+#[derive(Clone, Debug)]
+pub struct WalletCarbonBalance {
+    pub wallet: soroban_sdk::Address,
+    pub total_credits: i128,
+    pub redeemed_credits: i128,
+    pub available_credits: i128,
+}
+
+#[contracttype]
+#[derive(Clone, Debug)]
+pub struct CarbonSummary {
+    pub total_registered: i128,
+    pub total_verified: i128,
+    pub total_linked: i128,
+    pub total_redeemed: i128,
+}