¥Baseline and credit
A type of
emissions trading scheme where firms are encouraged to reduce
their greenhouse gas emissions below a projected Òbusiness as usualÓ path of increasing emissions. Any reductions below that future path earns credits
for the difference which can be sold to other emitters struggling to contain increases to
baseline levels.
¥Cap and trade
The most popular type of emissions
trading scheme where emissions are subject to a cap, permits are
issued up to that cap, and a market allows those emitting less than their quota of the cap
to sell their excess permits to emitters needing to buy extra to meet their quota.
¥Carbon dioxide
equivalent, CO2e,
See MtCO2e
¥Carbon neutral
An individual, family or
organization that is responsible for no net emissions of greenhouse gases from all
its activities is considered "carbon neutral". Emissions must be cut to a minimum and any
necessary emissions then offset by emission reducing activities elsewhere. Buying accredited
clean electricity helps cut household or office greenhouse emissions, while investing in
sustainable energy projects or afforestation schemes are examples of offsets.
¥Carbon positive
An individual, family or
organization that is responsible for taking more greenhouse gases out of the
atmosphere than it emits is said to be "carbon positive". This requires paying for
activities such as forest planting or investing in renewable energy.