Greenwashing
A term used to describe actions by organisations intended to create the impression of reducing emissions or improving sustainability credentials, but which lack verifiable environmental benefits.
Vintage
Refers to the period – usually a calendar year – in which an emissions reduction, avoidance or removal takes place. Carbon credits are often listed as being of a particular vintage.
VER
Voluntary Emission Reductions or Verified Emission Reductions. A general term used to describe project-based carbon credits.
Market Stability Reserve
A mechanism deployed under the EU Emissions Trading System to remove a volume of carbon allowances from circulation in the market.
Permanence
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.
KYC
Know Your Client is a security procedure used in the financial sector when contracting to do business with a new counterparty.
REDD+
A type of carbon offset project that protects forests against deforestation or degradation, and thereby earns carbon credits by reducing emissions compared…
NDCs
Nationally Determined Contributions: the national targets to reduce greenhouse gas emissions submitted by each country voluntarily under the Paris Agreement.
Externalities
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.