Boost your knowledge on carbon credits with our specialized Vocabulary page. Explore terms, definitions, and concepts related to carbon credits to become a sustainability expert.
Last modified: July 20, 2023
1. Carbon Credits
Carbon Credits:
Units representing the reduction or removal of one metric ton of greenhouse gas emissions from the atmosphere.
Emission Reductions:
Actions taken to lower the amount of greenhouse gases released into the environment, contributing to mitigating climate change.
Verified Emission Reductions (VERs):
Certified carbon credits earned from projects that meet rigorous standards and undergo independent verification.
Additionality:
Ensuring that carbon credit projects lead to real and additional emission reductions beyond business-as-usual scenarios.
Baseline Emissions:
The quantity of greenhouse gas emissions expected without the implementation of a carbon credit project.
Carbon Sequestration:
The process of capturing and storing carbon dioxide from the atmosphere, often through reforestation or sustainable land use.
Voluntary Carbon Market:
A market where carbon credits are bought and sold voluntarily by individuals, companies, or organizations to offset their own greenhouse gas emissions and support climate action beyond regulatory requirements.
Corporate Social Responsibility (CSR):
The commitment of businesses to contribute positively to society and the environment, often involving participation in the voluntary carbon market to offset emissions.
Carbon Neutral Certification:
The recognition given to individuals, companies, or products that have successfully offset their carbon footprint and achieved carbon neutrality through participation in the voluntary carbon market.
Climate Action:
Individual and collective efforts to address climate change, often demonstrated through participation in the voluntary carbon market to support climate mitigation projects.
2. Carbon Offset:
Carbon Offset:
An action taken to compensate for carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases.
Carbon Footprint:
The total amount of greenhouse gas emissions produced by an individual, organization, or product.
Climate Neutral:
Achieving a balance between carbon emissions produced and offset, resulting in a net-zero carbon footprint.
Offset Projects:
Initiatives that generate carbon credits through emission reduction or removal, allowing individuals and companies to offset their carbon footprint.
3. Paris Agreement 2015:
Paris Agreement 2015:
An international treaty adopted in 2015 under the United Nations Framework Convention on Climate Change (UNFCCC) to combat climate change.
Global Warming:
The increase in Earth's average surface temperature due to human activities, primarily from greenhouse gas emissions
NDCs (Nationally Determined Contributions):
Specific emission reduction targets and actions voluntarily committed by countries under the Paris Agreement.
Adaptation:
Measures taken to cope with the impacts of climate change and build resilience against its effects.
4. SDGs (Sustainable Development Goals):
Sustainable Development Goals (SDGs):
A set of 17 global goals adopted by the United Nations to address poverty, inequality, and environmental sustainability.
Global Goals:
The collective name for the SDGs, representing a universal call for action to create a more sustainable and equitable world.
Sustainable Development Targets:
Specific objectives under each SDG that provide a roadmap for achieving the goals by 2030.
Global Sustainability Agenda:
The collective efforts of nations, organizations, and individuals to work towards achieving the SDGs and creating a sustainable future.
Global Sustainability Agenda:
The collective efforts of nations, organizations, and individuals to work towards achieving the SDGs and creating a sustainable future.
5. Types of markets:
Voluntary Carbon Market:
A market where carbon credits are bought and sold voluntarily by individuals, companies, or organizations to offset their greenhouse gas emissions beyond regulatory requirements.
Compliance Carbon Market:
A market where carbon credits are traded to help businesses and entities comply with mandatory emissions reduction targets set by government regulations or international agreements.
Cap-and-Trade System:
A regulatory approach where a government sets a cap on total emissions allowed and issues or auctions emission allowances that can be traded among emitters to meet their compliance obligations.
Offset Market:
A segment of the carbon market that deals with the buying and selling of carbon credits generated from emission reduction projects, typically in the voluntary or compliance context.
Greenhouse Gas (GHG) Trading:
The process of buying and selling carbon credits or emission allowances in carbon markets to manage and offset emissions.
Regional Carbon Market:
A carbon market that operates within a specific geographical region, often governed by regional or national regulations and targets.
Global Carbon Market:
A carbon market that operates on an international scale, where carbon credits can be traded across borders to support global climate goals.
Over-the-Counter (OTC) Carbon Market:
A market where carbon credits are traded directly between buyers and sellers without the use of a centralized exchange.
Futures Carbon Market:
A market where carbon credits are bought and sold based on future delivery contracts, allowing participants to hedge against future price fluctuations
Exchange-Traded Carbon Market:
A market where carbon credits are traded on organized exchanges, providing a transparent and regulated platform for buying and selling.
Secondary Carbon Market:
A market where previously issued carbon credits are resold or traded after their initial issuance, allowing for liquidity and flexibility in the carbon market.
Project-Based Carbon Market:
A market focused on carbon credits generated from individual emission reduction projects, such as renewable energy projects, afforestation, and energy efficiency initiatives.