Glossary

In order to encourage individuals to reduce carbon dioxide emissions a value has been placed on carbon. The more you produce the more you pay. Within the EU, the Emissions Trading Scheme provides a mechanism for capping total CO2 emissions and generates a carbon value, as market participants are given…

The trading of personal, corporate or national credits to maintain and gradually reduce carbon emissions. Companies, nations or individuals who beat the targets can sell the balance as credits to those who exceed their limits.

A tax levied on fossil fuel usage usually based on the carbon content – generally designed to curb use rather than just raise revenue.

Sometimes called ‘carbon sequestration’, this is the long-term storage of carbon dioxide (CO2) in the forests, soil, ocean, or underground in depleted oil and gas reservoirs, coal seams, and saline aquifers. Carbon Capture and Storage can be referred to as CCS

An activity or process which does not add to the net amount of carbon dioxide (CO2)  in the atmosphere. As the organisation or product will typically have caused some greenhouse gas emissions, it is usually necessary to use carbon offsets to achieve neutrality.

A measure of the amount of carbon dioxide (CO2) emitted through the combustion of fossil fuels; can be measured on a personal or national level, or according to a specific activity, such as taking a flight to go on holiday.

A credit or permit arising from a greenhouse gas emissions reduction scheme, such as emissions trading, JI or CDM. Emissions are controlled by setting a cap on total emissions and allowing the market sector(s) to reach an economically balanced response via trading of emissions allowances.

A technological solution for capturing carbon dioxide as it is released into the atmosphere from fossil fuels either before or after combustion.

A pricing method or formula where the price to be received by a producer or supplier is based on the market price for the commodity or product to be sold minus one or more agreed deductions. For example, liquefied natural gas (LNG) netback prices may be determined by the market…

A body set up to work closely with the private sector to tackle climate change. The LCCA has been formed as a Mayoral led agency by the London Development Agency to enable and deliver sustainable and renewable energy and energy efficiency projects that will lead to a reduction of carbon…