Cap and trade
Cap and trade is a market-based approach to reducing greenhouse gas emissions. Governments set limits (or a cap) on how much emissions a company can produce. Companies can also trade their allowances with each other if they produce less emissions than their cap or want to exceed the limit.
Carbon accounting refers to the measurement of greenhouse gas emissions an organisation produces. It is used for reporting purposes and for strategising environmental policies to reduce emissions.
The carbon budget is used to determine climate policy and set emission targets. The cumulative net global carbon dioxide emissions can limit global warming and stop climate change. Emissions above the carbon budget will raise global temperatures.
A carbon credit or offset permits the holder to emit a specified amount of greenhouse gas emissions. In cap and trade systems, carbon credits/offsets can be traded.
Carbon dioxide is a gas that naturally occurs in the atmosphere. Too much carbon dioxide in the atmosphere can heat the planet. It is also produced due to a wide range of human activities, such as burning fossil fuels, industrial processes, and waste.
Carbon dioxide equivalent
Carbon dioxide equivalent (CO2e) is the amount of greenhouse gas equal to the amount of carbon dioxide it would take to warm the planet. It helps measure the impact of different greenhouse gases in a singular unit. For instance, 1 kg of methane is 29.8 CO2e.
Carbon Disclosure Project (CDP)
The CDP is a framework for organisations, cities, and countries to report their emissions and overall environmental impact.
Carbon footprint represents all the greenhouse gas emissions by an entity or activity.
Carbon management is an organised approach to reducing a company’s carbon emissions and achieving timely climate targets.
Carbon markets are trading systems for buying and selling carbon credits.
An entity is carbon neutral if it neither adds nor removes carbon emissions from the environment.
An entity or activity is carbon negative if its net result removes greenhouse gases from the environment. It is the next step to prevent climate change after net zero emissions.
Carbon reduction refers to the reduction of greenhouse gas emissions. Various activities and policies aim to reduce carbon dioxide and other greenhouse gas emissions, for example, switching to renewable energy or recycling plastics.
Carbon removal is the process of removing carbon dioxide from the atmosphere and storing it so that it cannot be emitted back into the atmosphere.
Carbon sequestration refers to storing carbon dioxide in a place where it will not impact the environment and climate.
Carbon sink refers to the storage where the carbon dioxide removed from the atmosphere is stored.
A carbon target is a specified amount of emissions to be reduced by the end of a specified period.
A carbon tax is a tax on carbon emissions produced by companies. It is a scheme to reduce carbon emissions by making emissions taxable and incentivising efforts to reduce carbon footprint.
A carbon token is a digital representation of a carbon credit on the blockchain.
Clean energy is obtained from sources that do not emit harmful environmental pollutants, for example, hydropower.
Clean technologies are technologies (products or processes) that help reduce greenhouse gas emissions and promote sustainability.
Climate adaptation refers to policies and measures to adapt to the potential impacts of climate change.
Climate change refers to long-term variations in weather patterns and temperatures, which can be natural and human-induced.
Climate investment refers to activities such as offsetting and removal that help remove carbon dioxide from the environment.
Climate mitigation refers to practices that aim to reduce greenhouse gas emissions that warm the planet and cause climate change.
Climate positive means that an activity goes beyond achieving net zero carbon emissions to actually create an environmental benefit by removing additional carbon dioxide from the atmosphere.
CO2 mineralisation involves the conversion of atmospheric carbon dioxide into solid mineral form (carbonate). It can happen naturally or artificially.
Conference of the Parties (COP)
COP is an annual United Nations (UN) conference on climate change. It brings together leaders worldwide to discuss the progress of reducing emissions and strategies to reach climate targets.
Corporate social responsibility (CSR)
CSR are policies in organisations that aim to impact the world positively.
Corporate sustainability is a business strategy that involves producing goods or services following environmentally sustainable practices.
Corporate Sustainability Reporting Directive (CSRD)
The CSRD is the new standard for reporting greenhouse gas emissions that impact European Union (EU) companies. CSRD will apply to over 49,000 companies in the block.