Carbon Glossary
Every term you will encounter in carbon accounting, emissions reporting and decarbonisation - defined precisely, without the corporate sustainability wrapper.
Every term, A to Z
A
Air Pollution
Air pollution involves the introduction of physical, chemical, or biological agents into the environment, which alters the natural characteristics of the atmosphere. Air pollution has a direct impact on air quality and is closely connected to climate and ecosystems. Many sources of air pollution, such as the burning of fossil fuels, also contribute to carbon emissions.
Air Quality Index (AQI)
The Air Quality Index (AQI) is a measure that conveys the level of air contamination in a particular area or country. It is determined by considering various types of pollution. Different nations have their own AQI systems aligned with different air quality standards.
Atmosphere / Air
The atmosphere refers to the layer of gases that surrounds a planet. Surprisingly, oxygen is not the most prevalent gas in Earth's atmosphere. Earth's atmosphere primarily consists of nitrogen (78.1%), oxygen (20.9%), argon (0.93%), carbon dioxide (0.04%), and trace gases, including neon, helium, methane, and krypton.
B
Beyond Value Chain Mitigation
Beyond Value Chain Mitigation (BVCM) encompasses actions taken to prevent, reduce, or eliminate greenhouse gas emissions beyond a company's value chain. Both compensation and neutralization can be considered as part of BVCM, and they should complement decarbonization efforts rather than serve as substitutes.
Biofuel
Biofuels are energy sources derived from biological materials, including crops, vegetable oils, animal fats, and various forms of waste. Biofuels can serve as alternatives to traditional fossil fuels, although their greenhouse gas mitigation potential may vary significantly.
Biomass / Biogas
As per the European Union's Renewable Energy Directive, biomass refers to the biodegradable portion of waste, products, and residues from various industries such as agriculture, forestry, fisheries, and aquaculture. Biomass can be converted into electricity, utilized for heat production, or processed into biofuels. Common types of biomass include plant material, wood, and other organic waste. Biomass can also be converted into biogas, primarily methane, through anaerobic digestion.
C
Carbon Accounting
Carbon accounting, also known as greenhouse gas accounting, involves systematic methodologies for measuring and monitoring the emissions of various greenhouse gases, including carbon dioxide equivalents (CO2e). This method encompasses all greenhouse gases, such as CO2, methane, nitrous oxide, and fluorinated gases, which are expressed in terms of carbon equivalents.
Carbon Border Adjustment Mechanism (CBAM)
The Carbon Border Adjustment Mechanism (CBAM) is a system that imposes a carbon price on imported products from countries with less ambitious climate change policies. The purpose of this system is to prevent the risk of carbon leakage. It was initially proposed by the European Commission in 2021 and is currently undergoing legislation, with implementation scheduled for 2026 and reporting commencing in 2023.
Carbon Capture and Storage (CCS)
Carbon capture entails the process of capturing carbon dioxide emissions from sources like chemical and biomass power plants and storing them underground to prevent their release. Various technologies, ranging from forestry to air-filtering equipment, can capture airborne CO2. Innovative methods often incorporate carbon capture and storage mechanisms.
Carbon Credit
The carbon credit system provides an incentive for companies to reduce their greenhouse gas emissions. Companies set emission caps and exceeding these limits results in fines. Unused certificates can be sold to other companies, creating a market-oriented approach to emission reduction. The number of available credits decreases over time to lower global greenhouse gas emissions.
Carbon Dioxide (CO2)
Carbon dioxide, commonly known as CO2, is a colorless, odorless gas composed of one carbon atom and two oxygen atoms. It is a natural component of Earth's atmosphere and a prominent greenhouse gas. Human activities, such as the burning of fossil fuels and deforestation, contribute to increased CO2 concentrations. Other greenhouse gases, including methane (CH4), nitrous oxide (N2O), and fluorinated gases (F-gases), are also significant contributors to global warming.
Carbon Dioxide Equivalent (CO2e)
Carbon dioxide equivalent (CO2e) is a metric used to standardize emissions from various greenhouse gases based on their Global Warming Potential (GWP). CO2e accounts for the heat-capturing properties of different gases, such as methane, which is 28 times more potent than CO2 over a 100-year period.
Carbon Emissions
Carbon emissions, also referred to as greenhouse gas emissions, release carbon compounds into the atmosphere. Carbon dioxide is the primary greenhouse gas released by human activities.
Carbon Footprint
A carbon footprint represents the total amount of carbon dioxide released into the atmosphere due to the actions of an individual, project, organization, or nation.
Carbon Leakage
Carbon leakage occurs when a company relocates its activities to countries with weaker carbon and sustainability regulations. This can result in an increase in the company's carbon footprint due to more permissive emissions allowances, transportation-related environmental costs, and inaccuracies in carbon emissions measurement.
Carbon Market
A carbon market is a system, either voluntary or mandated by law, that facilitates the trading of carbon credits among private and public entities. The goal of carbon markets is to provide economic incentives for companies to reduce their emissions, as they can sell unused emissions allowances to other companies in need.
Carbon Negative
Carbon negative status is achieved when an organization's activities not only reach net-zero carbon emissions but also actively remove additional carbon dioxide from the atmosphere, resulting in a net reduction of carbon.
Carbon Neutrality / Carbon-Neutral
Carbon neutrality implies that any CO2 emissions from a company's activities are balanced by equivalent compensatory actions or emissions removal. Companies can attain carbon neutrality by purchasing carbon credits to offset their emissions.
Carbon Positive
Carbon positive, or climate positive, signifies that a company goes beyond carbon neutrality by reducing or removing more greenhouse gas emissions than it generates.
Climate
Climate refers to the long-term average of weather conditions in a specific geographical region over a substantial period, typically around 30 years. Changes in climate involve shifts in temperature and weather patterns over extended time frames.
Climate Change
Climate change, according to the United Nations, encompasses temperature and weather pattern alterations over extended periods. Human activities, particularly the burning of fossil fuels, have been the primary driver of climate change since the 1800s. Climate change leads to consequences beyond increased temperatures, including droughts, water scarcity, fires, floods, storms, and declining biodiversity.
Compensation
Compensation, also known as carbon offsetting, involves the voluntary or mandatory purchase of carbon credits to balance the emissions produced by an entity. The price of a carbon credit used for compensation serves as a benchmark for comparing investments in direct internal reductions.
Corporate Sustainability Due Diligence
The European Commission introduced the Corporate Sustainability Due Diligence directive in 2022, aimed at promoting sustainable and responsible corporate behavior, and incorporating human rights and environmental considerations into companies' operations and corporate governance. The directive offers benefits for citizens, companies, and developing countries, such as enhanced human rights protection, improved access to justice, a standardized legal framework for EU companies, better access to finance, and improved living conditions.
Corporate Sustainability Reporting Directive (CSRD)
The Corporate Sustainability Reporting Directive is an EU regulation that mandates large companies to regularly report on their environmental and social impact activities. This policy helps stakeholders assess the non-financial performance of these companies.
D
Decarbonization
Decarbonization involves the reduction or elimination of human-made carbon emissions into the atmosphere. It seeks to reduce absolute carbon emissions and intensity and differs from climate neutrality, which can be achieved solely through the purchase of carbon credits.
Direct Emissions
Direct greenhouse gas emissions, also known as "Scope 1 emissions," originate from sources owned, produced, and controlled by a company. In contrast, indirect emissions result from the activities of the reporting organization but are controlled or produced by other entities.
E
Emissions
Emissions to the atmosphere consist of gases and substances released into the air. Human activities since the industrialization era have significantly altered the composition of the atmosphere through the release of substances and greenhouse gases.
Emissions Trading
Emissions trading, also known as cap-and-trade, is a market-based system designed to reduce greenhouse gas emissions. Under this system, a government establishes a limit on total emissions, divides this limit into allowances that represent the right to emit specific amounts of greenhouse gases, and allows these allowances to be bought and sold on the market. Emissions trading encourages cost-effective emissions reductions.
Environment, Social, Governance (ESG)
ESG, which stands for Environmental, Social, and Governance, is a framework assessing non-financial aspects of business performance. It serves as the foundation for regulations like NFRD, CSRD, and SFDR, with a focus on environmental policies, social responsibility, and governance practices.
EU Taxonomy
The EU Taxonomy classifies economic activities based on their contribution to environmental objectives related to sustainability. The classification includes six pillars: climate change mitigation, climate change adaptation, sustainable use of water and marine resources, transition to a circular economy, pollution prevention and control, and protection and restoration of biodiversity.
G
Global warming
Global warming, a long-term heating of Earth's surface driven primarily by human activities like fossil fuel burning, results in climate change. This encompasses not only temperature rise but also impacts like melting glaciers and increased droughts.
Green bonds
Green bonds are a financial instrument designed to fund projects with positive environmental impacts. While they function much like traditional bonds, the funds raised are specifically directed toward initiatives supporting renewable energy, energy efficiency, and sustainability aligned with the goals of the Paris Agreement.
Greenhouse effect
The greenhouse effect occurs when certain gases in the atmosphere trap heat from the sun's radiation, warming the planet. While these gases, including carbon dioxide and methane, naturally contribute to this effect, human activities, particularly the burning of fossil fuels, intensify it.
Greenhouse Gas (GHG) Protocol
The Greenhouse Gas Protocol is a globally recognized standard for measuring and managing greenhouse gas emissions. It plays a pivotal role in helping countries and companies committed to the Paris Agreement reduce emissions by providing a consistent framework for emissions management.
Greenhouse gases (GHGs)
Greenhouse gases, including carbon dioxide, ozone, methane, and nitrous oxide, contribute to the greenhouse effect, warming the planet. Significant emissions of these gases, especially carbon dioxide, have a profound impact on climate change.
I
Indirect emissions
Indirect emissions consist of Scope 2 and Scope 3 emissions that result from a company's activities but are owned or controlled by others. These emissions encompass various factors, including purchased electricity, waste management, and business travel.
Intergovernmental Panel on Climate Change (IPCC)
The IPCC is an intergovernmental body of the United Nations focused on advancing knowledge about human-induced climate change. It produces comprehensive Assessment Reports that guide international climate policy and has played a crucial role in raising awareness of climate change, earning it a Nobel Peace Prize in 2007.
K
Kyoto Protocol
The Kyoto Protocol was the first international treaty to commit nations to reduce greenhouse gas emissions. Adopted in 1997, it set a precedent for global cooperation to address climate change.
M
Mitigation
Climate change mitigation efforts aim to reduce or prevent the emission of greenhouse gases to limit the impact of climate change. These efforts include transitioning to renewable energy sources and improving energy efficiency.
N
Net-zero
Achieving net-zero involves reducing greenhouse gas emissions as much as possible and offsetting any remaining emissions through various means, including carbon capture and reforestation.
Neutralization
Neutralization refers to the removal of carbon from the atmosphere and its long-term storage, often involving methods like Direct Air Capture and Bioenergy with carbon capture and storage (BECCS).
Non-Financial Reporting Directive
The Non-Financial Reporting Directive, or Directive 2014/95/EU, mandates larger companies to disclose non-financial and diversity information. It provides transparency for investors, consumers, policymakers, and other stakeholders interested in evaluating a company's non-financial performance.
O
Offsetting
Offsetting involves taking actions to reduce or remove carbon emissions in one area to compensate for emissions produced elsewhere. These actions often include reforestation, cleaner cooking technologies, and carbon capture projects, complementing broader decarbonization strategies.
P
Paris Climate Agreement
The Paris Climate Agreement, adopted in 2015, aims to limit global warming well below 2°C and preferably to 1.5°C. Participating countries pledge to reduce greenhouse gas emissions and provide transparency in their actions to mitigate climate change.
S
Science-Based Targets Initiative (SBTi)
The Science-Based Targets Initiative offers guidelines and best practices for businesses to set carbon reduction goals aligned with the Paris Agreement's targets. This initiative helps companies commit to science-backed emissions reductions.
Scope 1, 2, and 3 Emissions
Scope 1 emissions are direct emissions from sources under an organization's control, such as on-site fuel combustion. Scope 2 emissions are indirect, stemming from purchased energy sources. Scope 3 emissions cover various other indirect emissions along a company's value chain, like those associated with materials, transportation, and customer use.
Streamlined Energy & Carbon Reporting (SECR)
SECR is a reporting framework in the UK that requires companies to disclose their energy and carbon emissions. It aims to encourage energy efficiency measures and cost savings while reducing carbon emissions.
Sustainable Development Goals (SDGs)
The United Nations' Sustainable Development Goals, established in 2015, provide a blueprint for global peace and prosperity. These goals cover various aspects, including poverty reduction, clean energy, and climate action, and are intended to be achieved by 2030.
Sustainable Finance Disclosure Regulation (SFDR)
The Sustainable Finance Disclosure Regulation, effective in the European Union, enhances transparency on sustainability for financial institutions. It serves three primary goals: improving disclosures, ensuring a level playing field within the EU, and countering greenwashing.
T
Task Force on Climate-related Financial Disclosures (TCFD)
The TCFD was created to improve reporting on a company's climate-related risks and opportunities and their financial implications. It provides a framework for organizations to disclose climate-related information as part of their regular reporting processes.
Tipping point
Climate tipping points represent critical thresholds in the climate system, where small changes can trigger significant and often irreversible effects. Crossing these tipping points can result in dramatic shifts in the climate, affecting ecosystems and weather patterns.
Two-degree limit / Two-degree target
The Paris Agreement aims to limit global warming to well below 2°C, with an ambition to keep it under 1.5 degrees Celsius compared to pre-industrial levels. Achieving this goal requires countries to peak greenhouse gas emissions and transition to a climate-neutral world by mid-century.
U
UN Framework Convention on Climate Change (UNFCCC)
The UNFCCC is an international treaty created to combat "dangerous human interference with the climate system." It laid the foundation for subsequent agreements and protocols addressing climate change, such as the Kyoto Protocol and the Paris Agreement.
V
Value chain emissions
Value chain emissions, also known as Scope 3 emissions, encompass a significant portion of an organization's total carbon footprint. These emissions include various categories, such as business travel, waste disposal, and the procurement of goods and services.
Voluntary Emission Reductions (VER)
VERs are emissions reductions achieved voluntarily by organizations without regulatory mandates. These reductions often result from an organization's proactive efforts to address climate change and are distinct from emissions reductions required by government regulations.
Z
Zero carbon
Zero carbon denotes products or services that produce no carbon emissions during their lifecycle. Unlike net-zero, which aims to balance emissions, zero carbon signifies that a product or service emits no carbon dioxide or other greenhouse gases associated with its use.
Stay informed
Press releases and company announcements delivered directly to your inbox. No marketing emails.
Ready to turn carbon data
Join the companies using CarbonTool to measure emissions, manage risk, and report with confidence. Start free. No credit card, no sales call.