GoodZero Glossary

Additionality

Additionality ensures a project results in greenhouse gas (GHG) emission reductions beyond what would have occurred without it. It guarantees that the emission savings are real, measurable, and directly attributable to the specific intervention.

Beyond Value Chain Mitigation

Beyond Value Chain Mitigation (BVCM) refers to actions taken by companies to reduce greenhouse gas emissions or environmental impact beyond their direct operations and value chain.

Carbon avoidance credits

Carbon avoidance credits are credits generated from projects that prevent or avoid the release of greenhouse gases into the atmosphere. These projects typically include initiatives like protecting forests from deforestation or preventing the use of fossil fuels by promoting renewable energy.

Carbon credits vs carbon offsets

Carbon credits indicate a reduction of greenhouse gas emissions through financial incentives, while carbon offsets reflect the actual removal of greenhouse gases. Carbon credits encourage businesses to reduce their footprint, whereas offsets support projects removing greenhouse gases. Despite these differences, the terms are often used interchangeably.

Carbon positive

Being carbon positive means an organisation or individual removes or offsets more carbon dioxide than they emit. This involves reducing their own emissions and investing in projects that capture or offset additional carbon, resulting in a net positive environmental impact.

Carbon reduction credits

Carbon reduction credits, often called carbon offsets, are tradable certificates that represent the reduction, removal, or avoidance of one metric ton of carbon dioxide (CO₂) or its equivalent in other greenhouse gases (GHGs). They are a key tool in the fight against climate change, providing financial rewards for efforts to cut emissions.

Carbon negative

Carbon negative means that an individual, organization, or activity removes more carbon dioxide from the atmosphere than it emits, resulting in a net decrease in atmospheric CO2 levels. This goes beyond achieving carbon neutrality by creating an overall positive environmental impact.

Carbon offsets

Carbon offsets are measurable reductions in greenhouse gas emissions that are used to compensate for emissions produced elsewhere.

Double-counting

Double counting refers to the error of reporting the same emissions or credits more than once within a greenhouse gas inventory. This can occur when multiple entities claim the same reduction or when emissions are counted in more than one scope or category, leading to inaccurate assessments of a company or country's total emissions and progress toward reduction targets.

Greenhouse Gas Protocol

The Greenhouse Gas Protocol is a globally recognised standard for measuring, managing, and reporting greenhouse gas (GHG) emissions. Developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), it provides guidelines for organisations to quantify and report their GHG emissions consistently and transparently, covering various sources and scopes to track and reduce their environmental impact.

How much is carbon credit worth?

One carbon credit is equivalent to one tonne of CO2, meaning it represents the reduction, removal, or avoidance of one tonne of carbon dioxide emissions.

How to calculate scope 2 emissions

The methods for calculating and reporting Scope 2 emissions affect a company's performance evaluation and mitigation actions.

The Corporate Standard advises calculating Scope 2 emissions by multiplying electricity consumption (MWh) by source-specific emission factors. It also highlights green power programs for emission reduction, using grid emission factors only when specific supply information is unavailable.

How to invest in carbon credits

Investing in carbon credits involves understanding your budget, choosing projects, and deciding on the number of credits. You can buy directly, use a broker, purchase from a decarbonisation partner, or trade on an exchange, each with its own pros and cons.

Are you looking to connect with high-impact carbon projects? Reach out to GoodZero experts for tailored decarbonisation support.

How to measure GHG emissions

Measuring GHG emissions starts with defining the scope of reporting using either the equity share or control approach. Organisations then collect activity data for Scope 1, 2, and optionally Scope 3 emissions, apply emissions factors to calculate total emissions, and conduct quality assurance checks before reporting based on standards.

How to reduce scope 3 emissions

Scope 3 emissions are all indirect emissions in a company’s value chain. Key strategies to reduce them include sustainable procurement, eco-friendly product design, and optimising logistics with low-emission transportation.

Kyoto Protocol

The Kyoto Protocol, adopted in 1997 and enforced in 2005, is an international treaty committing signatories to reduce greenhouse gas emissions. It set legally binding targets for developed countries to cut emissions by 5.2% below 1990 levels from 2008-2012 and introduced market-based mechanisms like emissions trading, the Clean Development Mechanism (CDM), and Joint Implementation (JI) to help achieve these targets cost-effectively.

Leakage

In carbon credits, leakage refers to the unintended increase in greenhouse gas emissions outside a project’s boundaries, which occurs as a result of the project and offsets its emissions reductions.

Mitigation hierarchy

The mitigation hierarchy is an environmental management framework aimed at minimising negative impacts on biodiversity and ecosystems. It follows a step-by-step approach: firstly, avoiding impacts entirely by choosing alternative options; secondly, minimising unavoidable impacts; thirdly, restoring affected ecosystems to their original state; and finally, offsetting residual impacts by providing equivalent or greater environmental benefits elsewhere.

Net Zero vs Carbon Neutral

"Net Zero" and "carbon neutral" are key goals in reducing greenhouse gas emissions. Carbon neutrality involves balancing emitted carbon dioxide (CO₂) with an equivalent amount of CO₂ removal or offset. Net Zero aims to reduce all GHG emissions to near zero, offsetting any remaining emissions by removing an equivalent amount of GHGs from the atmosphere, reflecting a broader and more systemic approach.

Paris Climate Agreement

The Paris Climate Agreement, adopted in 2015, is an international treaty that aims to limit global warming to well below 2°C above pre-industrial levels, with efforts to restrict it to 1.5°C.

The agreement also includes mechanisms for monitoring and reporting progress, financial and technical support for developing nations to achieve their climate goals.

PAS 2060

PAS 2060 is an internationally recognised standard for achieving and demonstrating carbon neutrality. It provides a framework for organisations to measure, reduce, and offset their greenhouse gas emissions, ensuring transparency and accountability in their carbon-neutral claims. The standard includes requirements for accurate emissions measurement, credible carbon offsetting, and transparent reporting.

PAS 2080

PAS 2080 is a global standard focused on managing and reducing carbon emissions in infrastructure. It provides a framework for organisations involved in infrastructure projects to measure, manage, and reduce carbon across the entire lifecycle, from design through to construction and operation. The standard encourages collaboration, innovation, and transparency to achieve more sustainable infrastructure development.

Permanence

Permanence refers to the long-term durability of greenhouse gas emission reductions or carbon sequestration achieved by a carbon credit project, ensuring that these benefits are maintained over time and not reversed.

Supply chain decarbonisation

Supply chain decarbonisation reduces carbon emissions across a product or service's lifecycle, including raw material extraction, manufacturing, transportation, and distribution. Key strategies include enhancing energy efficiency, adopting renewable energy, optimising logistics, and collaborating with suppliers on sustainable practices.

Scope 4 avoided emissions

Scope 4 emissions, known as avoided emissions, are reductions in greenhouse gas (GHG) emissions resulting from initiatives that prevent future emissions. Unlike Scope 1, 2, and 3 emissions, which pertain to direct and indirect emissions from a company's own operations and supply chain, Scope 4 emphasises the broader positive impact of activities that lower overall emissions.

Sustainable Development Goal

Sustainable Development Goals (SDGs) are a set of 17 global objectives established by the United Nations to address social, economic, and environmental challenges, aiming to create a more sustainable, equitable, and prosperous world by 2030.

Voluntary Emission Reductions (VER)

Voluntary emission reduction refers to the proactive steps individuals, companies, and organisations take to reduce their greenhouse gas (GHG) emissions beyond what is required by law. These efforts are driven by a commitment to sustainability and a desire to make a positive impact on the environment.

Voluntary carbon market

Voluntary carbon market is a decentralised marketplace where private entities choose to buy and sell carbon credits. These credits represent verified reductions or removals of greenhouse gases (GHGs) from the atmosphere.

Emissions Trading System EU

The EU Emissions Trading System (EU ETS) is a cap-and-trade program that limits greenhouse gas emissions from certain industries, allowing companies to buy and sell emission allowances to incentivise reductions.

Gold Standard VCS

The Gold Standard VCS refers to carbon credits certified by the Gold Standard, a rigorous certification body ensuring that carbon offset projects not only reduce emissions but also contribute to sustainable development, such as improving health or creating local jobs.

How can businesses avoid greenwashing

Businesses can avoid greenwashing by being transparent, backing sustainability claims with verifiable actions, and focusing on reducing their carbon footprint before using offsets. Clear targets, third-party verification, and honest communication with stakeholders are essential for credibility.

Greenhushing

Greenhushing is a practice of companies to deliberately downplay or withhold information about their environmental sustainability efforts to avoid scrutiny or criticism.