Contents

An emissions trajectory designed to limit warming to around 1.5°C, with no or limited overshoot, by rapidly reducing greenhouse-gas emissions and reaching net zero carbon dioxide globally.

24/7 carbon-free energy is an approach that seeks to match electricity consumption with carbon-free electricity supply on an hourly or similarly granular basis.

Additionality is the test of whether an emissions reduction or removal would not have occurred without the carbon finance, intervention or incentive being claimed.

Additionality in energy describes whether a purchase, project or intervention causes renewable or low-carbon energy generation beyond what would otherwise have occurred.

Afforestation is the establishment of forest on land that has not recently been forested, subject to the definition and time period used by the relevant framework.

Afforestation, reforestation and revegetation are land-based activities that establish or restore vegetation cover and may generate climate claims when measured against defined rules.

Annual matching is the matching of electricity consumption and energy attributes over a year, even when timing and location may differ.

Article 6 of the Paris Agreement is the part of the agreement that provides for cooperative approaches, including international transfer of mitigation outcomes and mechanisms.

Avoided emissions are estimated emissions reductions outside an organisation’s own inventory that occur because a product, service or intervention displaces a higher-emitting alternative.

A baseline scenario is the reference case against which emissions reductions, removals, impacts or changes are estimated.

The reference year against which emissions performance, reductions or target progress are measured.

Baseload is the minimum level of electricity demand or supply that is present over a sustained period.

A battery energy storage system is a system that stores electrical energy in batteries and releases it when needed.

Beyond value chain mitigation is climate action or finance outside an organisation's own value chain, intended to support wider mitigation while not replacing internal emissions reductions.

Biochar is a carbon-rich material made by heating biomass in limited oxygen and used in some contexts as a carbon removal or soil amendment pathway.

Biofuel is fuel produced from biological material such as crops, residues, waste oils, wood or other biomass.

Blue carbon is carbon stored or sequestered in coastal and marine ecosystems such as mangroves, tidal marshes and seagrasses.

Blue hydrogen is hydrogen produced from fossil fuels with carbon capture and storage applied to some associated emissions.

A buffer pool is a reserve of credits or units set aside to manage reversal, non-permanence or other integrity risks in a crediting system.

Cap and trade is a policy design that limits total permitted emissions and allows covered entities to trade emission allowances within that cap.

A Carbon Border Adjustment Mechanism is a policy tool that applies a carbon-cost adjustment to certain imported goods to address differences in carbon pricing or emissions constraints.

The maximum cumulative net carbon dioxide emissions consistent with limiting warming to a specified level with a stated likelihood and set of assumptions.

A process that captures carbon dioxide from industrial or energy sources, transports it and stores it in geological formations to prevent atmospheric release.

An umbrella term for capturing carbon dioxide and either using it in products or processes or storing it in geological formations.

A carbon credit is a transferable unit that represents a quantified emissions reduction or removal issued under a defined programme, methodology and accounting system.

A common unit that converts the climate effect of different greenhouse gases into the amount of carbon dioxide with an equivalent warming effect over a stated time horizon.

Carbon farming is the use of land management practices intended to reduce emissions or increase carbon storage in soils, vegetation or agricultural systems.

The quantified greenhouse-gas emissions associated with a defined organisation, product, activity, event or other subject across a stated boundary and period.

Greenhouse-gas emissions expressed per unit of activity, output, revenue, energy, product or another defined denominator.

Carbon leakage is the risk that emissions are displaced rather than reduced when production, investment or demand shifts to places with weaker or different climate constraints.

A condition or claim in which a defined carbon footprint is balanced through reductions, removals and, where permitted, offsets according to a specified methodology and period.

A carbon offset is the use of carbon credits or equivalent units to compensate for emissions that remain within a defined claim boundary.

A carbon registry is a system that records carbon units, ownership, transfers, retirements and project information to support traceability and avoid double counting.

The process of taking carbon dioxide from the atmosphere and durably storing it in geological, terrestrial, oceanic or product reservoirs.

The capture of carbon dioxide from the atmosphere and its storage in vegetation, soils, oceans, products or geological formations for a period of time.

A Claims Code of Practice is a set of rules or guidance for making sustainability or climate claims in a way that is clear, evidenced and not misleading.

The process of adjusting human or natural systems to actual or expected climate and its effects in order to reduce harm or take advantage of beneficial opportunities.

Human action that reduces greenhouse-gas emissions or enhances removals from the atmosphere in order to limit the magnitude of climate change.

The capacity of people, ecosystems, institutions and supply chains to anticipate, absorb, adapt to and recover from climate disruption while retaining their essential functions.

The potential for adverse consequences arising from the interaction of climate-related hazards, exposure, vulnerability and responses to climate change.

Climate scenario analysis is a structured exercise that tests how different plausible climate-related futures could affect strategy, financial position, operations or resilience.

Coal phase-out is the planned reduction and closure of coal use or coal-fired power generation over a defined period.

Combined heat and power is the simultaneous generation of electricity and useful heat from the same fuel or energy source.

A compliance carbon market is a regulated system where covered entities must surrender allowances or credits to meet legal emissions obligations.

A contribution claim states that an organisation has supported a climate or sustainability outcome without claiming that the contribution neutralises or offsets its own impact.

Core Carbon Principles are integrity criteria used to assess whether carbon credits meet threshold expectations for governance, emissions impact and sustainable development safeguards.

A corporate PPA is a power purchase agreement entered into by a company or organisation to buy electricity or related attributes from a generator.

Corresponding adjustments are accounting adjustments used under international climate accounting to avoid double counting of transferred mitigation outcomes between countries.

CORSIA is the Carbon Offsetting and Reduction Scheme for International Aviation, a sectoral scheme for addressing growth in international aviation emissions.

Credit retirement is the act of permanently taking a carbon credit out of circulation so it can no longer be transferred or used for another claim.

A crediting period is the defined time during which an activity can generate credits under a programme, methodology or approval.

Curtailment is the reduction of available electricity generation below what could otherwise be produced, often because of grid constraints or supply-demand conditions.

The sustained reduction of greenhouse-gas emissions from an economy, sector, organisation, product or activity through structural, technological and behavioural change.

Demand response is the adjustment of electricity use in response to grid conditions, price signals or reliability needs.

An engineered process that separates carbon dioxide directly from ambient air for subsequent durable storage or use.

Distributed generation is electricity generation located near the point of use or connected to local distribution networks rather than central transmission-scale generation.

District heating is a system that distributes heat from a central or shared source to multiple buildings through a heat network.

Double counting occurs when the same emissions reduction, removal, credit or climate benefit is counted more than once toward claims or obligations.

Durability is the extent to which a claimed climate or sustainability outcome is expected to last without being reversed, weakened or materially undermined over the relevant time horizon.

Electrification is the replacement or expansion of energy uses with electricity, often to reduce fossil fuel use when electricity supply is lower carbon.

Electrolysis is a process that uses electricity to split water into hydrogen and oxygen.

Embodied carbon is the greenhouse gas emissions associated with materials, production, transport, construction or other lifecycle stages before or beyond operational use.

An emission allowance is a permission or unit issued under a regulated emissions trading system that authorises the holder to emit a specified quantity within the scheme rules.

A coefficient that converts activity data into an estimated quantity of greenhouse-gas emissions for a defined source and set of conditions.

An emissions trading system is a regulated market mechanism that controls emissions by issuing, auctioning or allocating units that covered entities must hold or surrender.

An energy attribute certificate is a tradable instrument representing specified attributes of electricity generation, often used to support renewable electricity claims.

Energy efficiency is the reduction of energy input needed to deliver the same or improved service, output or function.

Energy intensity is energy use expressed per unit of output, revenue, product, floor area or another activity measure.

Energy mix is the combination of energy sources used by a country, grid, organisation, site or activity.

Energy poverty is the condition in which households or communities lack affordable, reliable or adequate energy services for basic needs and wellbeing.

Energy security is the reliable and affordable availability of energy in sufficient quantity and quality for an economy, community or organisation.

Energy storage is the capture of energy for later use through technologies such as batteries, pumped hydro, thermal storage or other systems.

Engineered carbon removals are technology-based approaches intended to remove carbon dioxide from the atmosphere and store it durably.

Ex-ante credits are credits or units issued or sold before the underlying emissions reduction or removal has fully occurred or been verified.

Ex-post credits are credits issued after the underlying emissions reduction or removal has occurred and has been verified under the applicable rules.

A feed-in tariff is a policy mechanism that pays electricity generators a set rate for eligible electricity supplied to the grid.

Final energy is energy delivered to end users after conversion, transmission and distribution losses have occurred.

Flaring is the controlled burning of gas, often at oil, gas or industrial sites, converting gas to combustion products rather than releasing it directly.

A group of synthetic greenhouse gases—including HFCs, PFCs, sulphur hexafluoride and nitrogen trifluoride—used in refrigeration, industry and electrical equipment.

A fossil fuel subsidy is public support that lowers the cost of producing or consuming fossil fuels or otherwise benefits fossil fuel activity.

Fugitive emissions are unintended or irregular releases of gases or vapours from equipment, systems, storage or extraction activities.

GHG consolidation approaches determine which operations and emissions an organisation includes according to equity share, financial control or operational control.

An emissions metric that compares the integrated warming effect of a greenhouse gas with carbon dioxide over a specified time horizon.

Gold Standard is a certification and crediting standard used for climate and sustainable-development projects that meet its programme requirements.

Green hydrogen is hydrogen produced using renewable electricity, typically through electrolysis, with low associated operational greenhouse gas emissions.

Gaseous constituents of the atmosphere that absorb and emit infrared radiation, thereby influencing the Earth's energy balance and climate.

Grey hydrogen is hydrogen produced from fossil fuels without carbon capture of the main process emissions.

Grid decarbonization is the reduction of greenhouse gas emissions associated with electricity generation and delivery on an electricity grid.

A grid emission factor is an estimate of greenhouse gas emissions per unit of electricity supplied or consumed from a defined grid.

Gross GHG emissions are emissions reported before subtracting removals, offsets, avoided emissions or other balancing claims.

A guarantee of origin is a certificate used in parts of Europe to disclose or track the origin and attributes of electricity generation.

A heat pump is a technology that moves heat from one place to another using electricity, commonly for heating, cooling or hot water.

Hourly matching is the comparison of electricity consumption and supply attributes within each hour rather than only over an annual period.

ICVCM is the Integrity Council for the Voluntary Carbon Market, an independent governance initiative focused on quality and integrity signals for voluntary carbon credits.

Improved forest management is a change in forest management intended to increase carbon storage, reduce emissions or improve forest outcomes relative to a baseline.

Insetting is the use of emissions reduction or removal activities within an organisation’s own value chain, often in contrast to offsetting outside that value chain.

Intermittency is variability in energy generation or availability caused by changing conditions such as wind, sunlight or hydrology.

An internal carbon price is a price an organisation applies inside decision-making to reflect the cost, risk or strategic value of greenhouse gas emissions.

An internationally transferred mitigation outcome is a quantified mitigation outcome transferred between countries under Article 6 accounting arrangements.

A just transition is an approach to economic and environmental change that seeks to manage social impacts, protect rights and support affected workers and communities.

An unintended increase in harm or pressure outside the intervention or accounting boundary caused by action taken to reduce it within that boundary.

Levelized cost of energy is an estimate of the average cost of generating electricity over a project lifetime per unit of electricity produced.

A Scope 2 accounting method that applies average emissions factors for the grids or geographic areas in which electricity consumption occurs.

A Scope 2 accounting method that reflects emissions from qualifying contractual instruments and supplier-specific electricity attributes chosen by the reporting organisation.

Measurement, reporting and verification is the system used to quantify, document, review and confirm emissions, reductions, removals or other performance claims.

A potent, relatively short-lived greenhouse gas emitted from energy systems, agriculture, waste and natural sources.

A microgrid is a local electricity system that can manage generation, storage and loads and may operate connected to or separate from the wider grid.

The mitigation hierarchy is the principle that organisations should first avoid and reduce negative impacts before relying on compensation, restoration or offsetting measures.

A climate plan communicated by a Party to the Paris Agreement describing the mitigation and, often, adaptation actions it intends to pursue.

Actions that protect, conserve, restore, sustainably use or manage ecosystems to address societal challenges while delivering human wellbeing, resilience, ecosystem-service and biodiversity benefits.

Net zero describes a balance between remaining emissions and removals, but its credibility depends on boundary, pathway and residual emissions.

A long-lived greenhouse gas emitted mainly from agricultural soils, manure, industry and combustion, with a high warming effect per tonne.

Non-renewable energy is energy derived from finite sources that are not replenished on human timescales, such as coal, oil, gas or uranium.

An offsetting claim states that a quantified impact has been counterbalanced by a corresponding credit, reduction or removal elsewhere, subject to the quality of the evidence and accounting boundary.

Operational carbon is the greenhouse gas emissions associated with the use and operation of an asset, building, product or service over time.

Over-crediting occurs when credits or claimed reductions exceed the environmental benefit that can reasonably be attributed to the activity.

A legally binding international climate treaty under which countries pursue efforts to limit warming, strengthen adaptation and progressively increase national climate action.

Permanence is the durability of an emissions reduction or removal over the period required for the claim, methodology or climate benefit to remain valid.

Phantom credits are credits that appear to represent an environmental benefit but lack credible evidence that the benefit occurred, was additional, or was not already claimed elsewhere.

Climate-related risk arising from acute events or chronic changes that affect people, ecosystems, assets, operations and value chains.