Carbon Credit Glossary Flashcards
Additionality
Additionality refers to carbon offset benefits that would not have happened on their own accord, i.e. without the effect of carbon financing. A project that “saves” a forest that was not credibly under threat is a project that does not demonstrate additionality.
Carbon Credit
A carbon credit is a unit of measure generated from a specific project activity that destroys, sequesters or avoids greenhouse gas (GHG) emissions. One credit is equivalent to 1 Mt (metric tonne) of greenhouse gas emissions. A carbon credit and a carbon offset are effectively equivalent, i.e. different terms for the same thing.
Carbon
A euphemism to describe the amount of carbon dioxide (CO2) and all GHG, or greenhouse gas emissions, in the atmosphere. Often used as an umbrella term that includes not just carbon dioxide (CO2), but other greenhouse gasses
Cap and Trade
Governments or companies are given emission targets (caps) and can purchase tradable emissions allowances to compensate for going over a cap.
Carbon Footprint
The total amount of greenhouse gases that are emitted into the atmosphere each year by a person, family, building, organization or company.
Carbon Market
A carbon market refers to the buying and selling of GHG, or greenhouse gas emissions, worldwide. The overall carbon market consists of two submarkets: 1) a compliance market guided by government regulation and multinational agreements, and 2) a voluntary market typically utilized by businesses and individuals seeking to offset their carbon impact.
Carbon Permit
A permit gives its holder the right to pollute up to a certain level.
Clean Development Mechanism (CDM)
The system established under the Kyoto Protocol through which countries meet emissions targets by purchasing carbon credits that fund sustainable development projects.
Co-benefits
The economic, social, and climate benefits found in a single policy or measure created to address climate change.
Commodity Broker
An entity that buys and sells carbon credits that are not yet retired. They collect a margin on the sale of this service.
Compliance Market
The compliance market refers to the regulatory framework established by governments and multinational agreements to legally limit how many metric tons of greenhouse gasses businesses within their jurisdiction can emit.
Emissions Obligation
Total amount of annual CO2 emissions from a company that are regulated under the California cap-and-trade system.
Gold Standard
A certification standard for offset projects in countries that don’t have emission reduction targets under the Kyoto Protocol.
Greenhouse Gas (GHG)
Stands for greenhouse gas. These gases include CO2 (carbon dioxide), CH4 (methane), N2O (nitrous oxide), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons), and SF6 (sulfur hexafluoride).
Greenhouse Gas Effect
Is caused when GHG, or greenhouse gases, get trapped by the Earth’s atmosphere and retain heat.
Guarantees of Origin (GO)
The European Union mandate that all member states must disclose to consumers the proportion of their electricity consumption that is generated from renewable energy.
Greenhouse Gas Registry
A public listing platform for recognizing businesses that have reported third-party verified GHG, or greenhouse gas, inventories, as well as reduced emissions.
Kyoto Protocol
The United Nations protocol ratified in 1997 that established carbon emission reduction targets for participating nations
Project Design Document (PDD)
An essential technical document that outlines a carbon credit project’s strategy and methods.
Project Protocol
A document published by the Greenhouse Gas Registry. A carbon project developer will follow the methodology and meet all the criteria specified in the project protocol.
Quantification
In this regard, this addresses the number of tonnes of GHG, or greenhouse gas.
Real
The project exists and the credits represent measurable reductions in greenhouse gases.
REC
Stands for Renewable Energy Certificate
RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource
REDD+
Stands for Reduce Emissions from Deforestation and Forest Degradation and is an international framework to both stop the destruction of forests and to implement forest management programs.
Registered
Carbon Credits can be used only once and must be registered with a unique serial number.
Registry
Is a third-party program to verify, account for, measure, and collect data for GHG, or greenhouse gas, emissions to be traded on the carbon market.
Regulatory Offsets
Offsets purchased to fulfill a regulated emissions cap.
Reseller
Is similar to a commodity broker, but on a smaller scale. A reseller sells to the end-user.
RNG Programs
Stands for Renewable Natural Gas
RNG is a program giving gas customers a choice to purchase a percentage of their usage as natural gas, which is produced from biomass, and is interchangeable with liquified petroleum gas.
SDG
Stands for Sustainable Development Goals
is a list of 17 goals, as laid out by the United Nations, for a more sustainable future. Of the 17, four are climate-related, including climate action.
TIGR
Stands for Tradable Instrument for Global Renewables
is an online platform from which to track and trade RECs in Asia, Africa, and the Americas.
Validation
At the beginning stages, validation is a process of having a qualified accredited third-party audit of a carbon project. This assures that the project meets the GHG, or greenhouse gas, program criteria.
Verified Carbon Standard (VCS)
A standard for certifying carbon emission reductions that is managed by the nonprofit Verra.
VOC
Stands for Volatile Organic Compound
Are organic man-made chemicals that impact indoor air quality and may pose health risks. A VOC is not a GHG. VOC’s are often found in building materials, home and personal products, and activities such as smoking cigarettes or burning wood.
Voluntary Offsets
Offsets purchased for any other reason like a corporate sustainability program.
WRC
Stands for Water Restoration Certificate
Is a certificate confirming the purchase of 1,000 gallons of water to offset water usage and restore critical rivers or streams, particularly at times when water is needed the most.
