We study whether customers carbon emissions impact trade credit. Through the analysis of a robust dataset encompassing 14,065 firm-year observations across 57 countries from 2002 to 2019, we document a negative relation between a firms carbon emissions and its ability to obtain trade credit from suppliers. This relationship is especially evident in financially constrained buyer firms, firms in intensely competitive industries, and those engage in corporate social responsibility (CSR) activities primarily for greenwashing. We further document that the positive impact of carbon emissions on suppliers trade credit is more pronounced for firms in countries with stakeholder-centric, greater climate risk, higher economic policy uncertainty, and emissions trading system. Our study contributes new perspectives to the literature on the role of carbon emissions in supply chains, highlighting suppliers allocate higher trade credit, a unique form of lending practices, to customers with lower carbon footprints. This finding underlines the significant role of environmental factors in shaping financial relationships and decisions in supply chains.