Dictionary of Terms Related to Environment and Climate Change
A
Additional Offsets: Additional carbon credits that would not have occurred if the offset project had not been implemented.
Afforestation: Planting new forests in places that previously had no trees.
Anthropogenic: Caused by human activities, referring to increased greenhouse gas emissions.
B
BioFuel: Fuel derived from biomass, usually in liquid form.
Biomass: Organic material from living or recently deceased plants or animals.
Blue Carbon: Carbon absorbed and deposited in biomass and sediments by living organisms in coastal and marine environments.
C
California Cap and Trade Scheme: Program administered by the Western Climate Initiative, controlled by the California Air Resources Board.
Cap and Trade: Regulatory procedure that limits the greenhouse gas emissions of companies.
Carbon Allowances: Permits (credits) for the release of greenhouse gases in a controlled carbon market.
Carbon Broker: Intermediaries that facilitate transactions between project developers and end users.
Carbon Budget: The maximum amount of CO2 the world can release to keep warming below 2°C.
Carbon Calculator: Online tool that calculates your carbon footprint.
Carbon Capture and Sequestration (CCS): Process of sequestering and long-term storage of CO2 from industrial and energy sources.
Carbon Capture, Utilization, and Storage (CCUS): Method of capturing CO2 and using it to create a new product.
Carbon Credits: The offset equivalent of one ton of carbon dioxide or equivalent.
Carbon Cycle: The natural carbon cycle that maintains a stable balance of carbon dioxide in the atmosphere.
Carbon Dioxide (CO2): Heat-trapping gas composed of carbon and oxygen.
Carbon Dioxide Equivalent (CO2e or CO2eq): Global standard measure of greenhouse gas emissions.
Carbon Footprint: The amount of carbon dioxide emitted into the atmosphere as a result of an entity’s actions.
Carbon Market: Market that treats emissions reductions as a commodity.
Carbon Neutral: Also known as having a net zero carbon footprint.
Carbon Offsets: Carbon credits that represent a certain amount of carbon sequestered or removed from the atmosphere.
Carbon Sink: A natural or man-made reservoir that collects and stores carbon-containing chemical components.
Carbon Source: Any source of carbon dioxide or equivalent greenhouse gases.
CCA Futures: Allocation futures contracts issued by the California Cap and Trade Program.
CCO Futures: Futures contracts for offset credits issued by the California Air Resources Board.
CCS Carbon Capture and Storage: Process for sequestering and long-term storage of CO2.
CCU Carbon Dioxide Capture and Utilization: Method of capturing CO2 and using it to create a new product.
Climate Change: Climate change caused directly or indirectly by human activity.
Compliance Carbon Market: Carbon markets regulated by law.
COP: Conference of the Parties, also known as the United Nations Conference on Climate Change.
D
DAC (Direct Air Capture): Process in which CO2 is extracted directly from the atmosphere.
E
Emission Reduction Ton (ERT): The reduction or removal of one metric ton of carbon dioxide equivalent from the atmosphere.
EU Emission Trading Scheme (EU ETS): The largest cap and trade program in the world.
Extreme Weather Events: Unusual and extreme weather events.
F
Fossil Fuels: Fuels derived from fossil hydrocarbon deposits.
G
Global Warming: The increase in the average temperature of the Earth’s surface.
Global Warming Potential (GWP): Scientific measure that compares how harmful each greenhouse gas is to the atmosphere.
Gold Standard Verified Carbon Standard (GS VER): Certification scheme for emission reduction projects.
H
Hydropower: Energy derived from the force of moving water, used to produce electricity.
I
ICE CER Futures: Futures contract for a certified emission reduction unit.
ICE EUA Futures: Futures contract for permits issued by the European Union Emissions Trading System.
ICE Global Carbon Index: An index based on prices from the EU Emissions Trading System, the California Cap and Trade Program and the Regional Greenhouse Gas Initiative.
ICE RGGI Futures: Futures contract for RGGI allocations.
K
Kyoto Protocol: Global agreement signed in 1997 to reduce greenhouse gas emissions.
L
Land Use Change (LUC): Changes in the way a certain area of land is used or managed.
Leakage: When a reduction in emissions from an offset project in one location produces an increase in emissions in another area.
M
Mandatory (Compliance) Market: Mandatory markets regulated by law.
Megawatt (MW): A unit of power equal to one million watts.
Megawatt Hour (MWh): The equivalent of 1,000 kilowatts of energy consumption continuu for an hour.
N
Net Zero: A condition where greenhouse gases emitted into the atmosphere are balanced by the amount of greenhouse gases removed from the atmosphere.
Netzero: A condition similar to Net Zero.
O
Offset Certificates: Paper licenses given in exchange for the purchase of carbon credits.
p
Paris Agreement: An international treaty on climate change.
Pathway: A model scenario for climate change.
Performance Standard: Performance standard that counts as offsets for any energy reduction less than a specified threshold.
Permanent Offsets: Offsets that are long lasting or guaranteed to be replaced in case of loss.
R
Real Offsets: Carbon offsets that have already effectively reduced carbon emissions.
Reduced Emissions from Deforestation and Forest Degradation (REDD+): Projects in areas where forests are at risk due to land use change.
Regional Greenhouse Gas Initiative (RGGI): A multi-state cap and trade program.
Regulated carbon market: Legally regulated carbon market.
Removal Unit (RMU): A Kyoto Protocol unit.
Renewable Energy: Energy derived from sources that can be renewed naturally.
Renewable Energy Credits (REC): Unlike a carbon offset, a renewable energy credit represents one MWh of energy produced by a renewable energy source.
Retire: To permanently remove carbon offsets from the market to prevent their resale.
S
Scope 1 Emissions (S1): The release of greenhouse gases into the atmosphere from sources directly owned or controlled by an organization.
Scope 2 Emissions (S2): The discharge of greenhouse gases as a result of the electricity required to power an organization’s buildings.
Scope 3 Emissions (S3): The release of greenhouse gases into the atmosphere as a result of an organization’s activities, but physically produced by another entity.
Sequestration: The removal of carbon dioxide from the atmosphere by biological, chemical or physical processes.
Sustainable Development Goals (SDG): Sustainable Development Goals established by the UN.
U
UN Framework Convention on Climate Change (UNFCCC): Convention adopted in 1992 and available for signature during the Earth Summit in Rio de Janeiro.
V
Verifiable Offsets: Carbon offsets that can be quantified, tracked and validated.
Verification: An unbiased review performed by an authorized third-party auditor.
Verified Carbon Unit (VCU): A unit equivalent to one metric ton of certified and emitted equivalent carbon dioxide emissions.
Verified Emission Reduction (VER): Carbon credit generated by a project that has been independently validated.
Verra: A certification standard for non-governmental emission reduction initiatives.
Vintage: The year of emission reduction to which a carbon credit belongs.
Voluntary Carbon Market (VCM): A carbon market where members are not legally bound to reduce their emissions.