Carbon Credits and Climate Terminology:

• Carbon Credits: Units representing the reduction or removal of one metric ton of greenhouse gas emissions from the atmosphere.

• Emission Reductions: Actions taken to lower the amount of greenhouse gases released into the environment, contributing to mitigating climate change.

• Verified Emission Reductions (VERs): Certified carbon credits earned from projects that meet rigorous standards and undergo independent verification.

• Additionality: Ensuring that carbon credit projects lead to real and additional emission reductions beyond business-as-usual scenarios.

• Baseline Emissions: The quantity of greenhouse gas emissions expected without the implementation of a carbon credit project.

• Carbon Sequestration: The process of capturing and storing carbon dioxide from the atmosphere, often through reforestation or sustainable land use.

• Voluntary Carbon Market: A market where carbon credits are bought and sold voluntarily to offset greenhouse gas emissions and support climate action beyond regulatory requirements.

• Corporate Social Responsibility (CSR): The commitment of businesses to contribute positively to society and the environment, often involving participation in the voluntary carbon market to offset emissions.

• Carbon Neutral Certification: Recognition for achieving carbon neutrality through participation in the voluntary carbon market.

• Climate Action: Individual and collective efforts to address climate change, often demonstrated through participation in the voluntary carbon market to support climate mitigation projects.

Carbon Offset and Related Concepts:

• Carbon Offset: An action taken to compensate for carbon emissions by investing in projects that reduce or remove an equivalent amount of greenhouse gases.

• Carbon Footprint: The total amount of greenhouse gas emissions produced by an individual, organization, or product.

• Climate Neutral: Achieving a balance between carbon emissions produced and offset, resulting in a net-zero carbon footprint.

• Offset Projects: Initiatives that generate carbon credits through emission reduction or removal, allowing individuals and companies to offset their carbon footprint.

Paris Agreement 2015 and Climate-Related Terms:

• Paris Agreement 2015: An international treaty adopted in 2015 to combat climate change.

• Global Warming: The increase in Earth’s average surface temperature due to human activities, primarily from greenhouse gas emissions.

• NDCs (Nationally Determined Contributions): Specific emission reduction targets and actions voluntarily committed by countries under the Paris Agreement.

• Adaptation: Measures taken to cope with the impacts of climate change and build resilience against its effects.

Sustainable Development Goals (SDGs) and Global Sustainability:

• Sustainable Development Goals (SDGs): A set of 17 global goals adopted by the United Nations to address poverty, inequality, and environmental sustainability.

• Global Goals: The collective name for the SDGs, representing a universal call for action to create a more sustainable and equitable world.

• Sustainable Development Targets: Specific objectives under each SDG that provide a roadmap for achieving the goals by 2030.

• Global Sustainability Agenda: The collective efforts of nations, organizations, and individuals to work towards achieving the SDGs and creating a sustainable future.

Types of Markets in Carbon Trading:

• Voluntary Carbon Market: A market where carbon credits are bought and sold voluntarily to offset greenhouse gas emissions beyond regulatory requirements.

• Compliance Carbon Market: A market where carbon credits are traded to help businesses and entities comply with mandatory emissions reduction targets set by government regulations or international agreements.

• Cap-and-Trade System: A regulatory approach where a government sets a cap on total emissions allowed and issues or auctions emission allowances that can be traded among emitters to meet compliance obligations.

• Offset Market: A segment of the carbon market that deals with buying and selling carbon credits generated from emission reduction projects, typically in the voluntary or compliance context.

• Greenhouse Gas (GHG) Trading: The process of buying and selling carbon credits or emission allowances in carbon markets to manage and offset emissions.

• Regional Carbon Market: A carbon market that operates within a specific geographical region, often governed by regional or national regulations and targets.

• Global Carbon Market: A carbon market that operates on an international scale, where carbon credits can be traded across borders to support global climate goals.

• Over-the-Counter (OTC) Carbon Market: A market where carbon credits are traded directly between buyers and sellers without the use of a centralized exchange.

• Futures Carbon Market: A market where carbon credits are bought and sold based on future delivery contracts, allowing participants to hedge against future price fluctuations.

• Exchange-Traded Carbon Market: A market where carbon credits are traded on organized exchanges, providing a transparent and regulated platform for buying and selling.

• Secondary Carbon Market: A market where previously issued carbon credits are resold or traded after their initial issuance, allowing for liquidity and flexibility in the carbon market.

• Project-Based Carbon Market: A market focused on carbon credits generated from individual emission reduction projects, such as renewable energy projects, afforestation, and energy efficiency initiatives.