In the context of economics, an externality is a consequence of a business or industrial activity that affects third parties but which is not reflected in market prices. A ‘negative externality’ is when those consequences cause harm, for example the damage caused by a changing climate, driven by the CO2 released from the combustion of fossil fuels, or the damage to human health caused by local air pollutants released from combustion processes.
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The Carbonwise editorial team is formed of seasoned established industry writers and specialist journalists.
9 September 2025
Airbnb’s direct greenhouse gas (GHG) emissions come from its own offices, while indirect emissions come from the energy it consumes, and from upstream and downstream activities associated with its business...
2 September 2026
A mechanism deployed under the EU Emissions Trading System to remove a volume of carbon allowances from circulation in the market.
27 August 2026
In order to ensure the global reduction in GHG emissions, carbon reductions need to be permanent. Permanence is considered when approving a carbon offset project such as avoided deforestation.
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