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.
27 July 2026
On 17th July, the European Commission unveiled its much-anticipated legislative proposal to overhaul the EU’s compliance carbon market, the EU Emissions Trading System (EU ETS).
23 July 2026
Know Your Client is a security procedure used in the financial sector when contracting to do business with a new counterparty.
14 July 2026
A type of carbon offset project that protects forests against deforestation or degradation, and thereby earns carbon credits by reducing emissions compared...
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