A
Additionality
Proof that a carbon project reduces emissions beyond what would happen naturally in a business-as-usual scenario.
Avoided Emissions
Greenhouse gas emissions prevented from entering the atmosphere because a project implemented a cleaner alternative (e.g., wind farm vs coal plant).
Afforestation
The process of planting a brand-new forest on land that has not had tree cover for a long time, serving as a nature-based carbon sink.
B
Biochar
A stable, charcoal-like substance created through pyrolysis that locks carbon into the ground for centuries while improving soil nutrients.
Blue Carbon
Carbon captured and stored by coastal and marine ecosystems, such as mangroves, salt marshes, and seagrasses.
C
Carbon Neutral
A status achieved when an entity balances emitted carbon with an equivalent amount removed or offset to reach net-zero impact.
Carbon Registry
An official digital ledger that tracks the lifecycle of a carbon credit, ensuring it is unique and correctly retired.
Carbon Trading
A market system where companies buy and sell credits representing specific amounts of carbon to manage pollution costs.
Compliance Carbon Market
A mandatory marketplace created by government regulations (like EU ETS) where companies must hold credits to cover emissions.
D
Direct Air Capture (DAC)
Technology using industrial fans and chemical reactions to scrub CO₂ directly out of the ambient air for permanent storage.
E
Energy Efficiency
Using smarter technology to perform tasks with less power, often the most cost-effective way to reduce a carbon footprint.
Environmental Attributes
The specific 'green' benefits of a project, such as CO₂ saved or biodiversity protected, represented by carbon credits.
F
Forward Carbon Contract
A financial agreement to purchase carbon credits at a set price for delivery at a future date, providing developers guaranteed income.
G
Greenwashing
Deceptive marketing where a company makes false or exaggerated claims about its environmental efforts to appear 'greener' than it is.
Grid Emission Factor
A value representing the average CO₂ released per unit of electricity produced by the local power grid.
H
High-Integrity Carbon Credits
Premium credits strictly verified to prove carbon reduction is real, additional, and permanent, often including social co-benefits.
I
Impact Investing
An investment strategy targeting positive, measurable social and environmental changes alongside financial profit.
L
Low Carbon Economy
An economic model shifting away from fossil fuels toward renewables and efficiency to minimize greenhouse gas release.
M
Mitigation Strategy
A long-term plan to reduce or prevent greenhouse gas emissions through renewables, efficiency, and offsetting.
Marketplace (Carbon Marketplace)
A digital platform where developers list carbon credits for sale, allowing businesses to browse and buy environmental assets.
P
Project Developer
The organization responsible for designing and managing a carbon project, from ground work to monitoring results.
Project Validation
A formal pre-check by an independent third party to ensure a project's design is scientifically sound before it starts.
Project Verification
A post-implementation auditor check to confirm the exact amount of carbon reduced before credits are officially issued.
R
REDD+
A UN framework (Reducing Emissions from Deforestation and forest Degradation) that pays nations to protect existing forests.
Retirement of Carbon Credits
The final step where a credit is marked as 'used' in a registry, permanently taking it out of circulation to prevent double-counting.
S
Science-Based Targets (SBT)
Emission reduction goals set in line with latest climate science to keep global warming below 1.5°C.
Sustainable Development Goals (SDGs)
17 global UN goals. Carbon projects often 'tag' credits with these to show benefits like clean water or job creation.
T
Transparency
The principle of open and honest tracking of every carbon credit's origin, impact, and financial flow.
V
Vintage (Carbon Credit)
Refers to the specific year in which the carbon reduction or removal actually occurred (e.g., a 2024 Vintage).
W
Waste-to-Energy Project
Projects that capture trash/landfill waste and turn it into usable electricity, preventing methane escape.
X
Xeriscaping
Landscaping using native, drought-tolerant plants to eliminate the need for supplemental watering in dry climates.
X-Value / X-Factor
Metrics and innovative features that rank the extra social/environmental benefits of a project beyond just carbon.
Y
Yield (Carbon Project)
The total amount of carbon credits a project successfully generates or 'harvests' over a set period.
Sustainability Yield
A measurement of combined financial and environmental returns generated by a green investment.
Z
Zero Emissions
Describes processes or vehicles that release absolutely no greenhouse gases during operation (e.g., electric cars).
Zero Carbon
A status where a product or service is created without adding new carbon, using zero-emission energy or perfect offsets.
Zero Energy Building (ZEB)
A highly efficient building that produces as much renewable energy on-site as it consumes annually.
Zero Waste
A circular economy philosophy where products are designed for reuse and recycling to keep everything out of landfills.