Carbon Glossary

The principle that carbon removal or emissions reductions would not have occurred without the incentive of carbon finance. Essential for ensuring carbon credits represent real climate benefits.

Independent risk assessment of carbon projects using satellite data and AI analysis. Provides ratings from AAA to D based on additionality, permanence, and overestimation risks.

Stable carbon created through pyrolysis of organic materials. Provides long-term carbon storage while improving soil fertility and agricultural productivity.

Reserve of carbon credits set aside to cover potential reversals or overestimation in carbon projects. Provides insurance against project risks and uncertainties.

Credits from projects that prevent emissions that would otherwise have happened, such as protecting forests or replacing fossil fuels with renewable energy. They reduce future emissions rather than removing existing CO₂.

A carbon credit is a tradable instrument that represents the removal or reduction of one metric ton of carbon dioxide equivalent (tCO₂e) from the atmosphere. Carbon credits are generated by projects that actively remove CO₂ from the atmosphere (carbon removal) or prevent emissions from being released (emission reduction).

A carbon offset is a reduction in emissions of carbon dioxide (CO₂) or other greenhouse gases made in order to compensate for emissions made elsewhere.

Database system that tracks the ownership and transfer of carbon credits to prevent double counting. Examples include Verra, Gold Standard, and American Carbon Registry.

Credits from projects that physically take CO₂ out of the atmosphere and store it — for example direct air capture, biochar, or tree planting.

Core Carbon Principles: a voluntary quality benchmark from the ICVCM. Credits labelled CCP-eligible have been independently assessed against shared integrity criteria.

Additional environmental and social benefits beyond carbon removal, such as biodiversity conservation, water quality improvement, or local economic development.

The UN aviation industry's offsetting scheme. CORSIA-eligible credits meet criteria set for airlines to use against their international flight emissions.

EU Carbon Removals Certification Framework: an EU framework for certifying carbon removals and soil-carbon farming to common standards. Still being implemented, so eligible credit availability is limited.

Technology that uses specialized machines to capture CO₂ directly from ambient air. Often combined with permanent geological storage for high-permanence carbon removal.

Engineered removal uses technology to remove CO₂ from the atmosphere and lock it away. Examples include direct air capture and biochar. These methods offer very high durability, storing carbon for hundreds or thousands of years but they are the most expensive.

Process that accelerates natural rock weathering to capture CO₂ from the atmosphere. Creates permanent carbon storage through mineral carbonation reactions.

An agreement to buy credits before they're issued, with delivery once the project is verified. The exact payment structure is determined with the project developer — typically an upfront cost plus a follow-up payment on delivery to minimise risk (a larger upfront share can sometimes lower the cost per tonne). Usually lower priced than spot, but carries delivery risk if the project underperforms.

When carbon removal activities in one area lead to increased emissions elsewhere. Must be accounted for in project design and carbon accounting methodologies.

Carbon stored durably for 1,000+ years (e.g. in rock or deep geology), so the climate benefit is very unlikely to reverse — generally higher quality and higher cost than short-lived nature storage.

MRV stands for Measurement, Reporting, and Verification. In the context of carbon credits and climate projects, MRV refers to the processes used to accurately measure the climate impacts (such as CO₂ removals or reductions), report these outcomes in a transparent way, and verify them via independent or third-party entities to ensure their credibility.

System for measuring, reporting, and independently verifying carbon removal or emissions reductions. Critical for ensuring project integrity and transparency.

Nature-based removal harnesses natural processes to absorb and store carbon. The most common methods are afforestation, reforestation and revegetation (ARR) where growing plants draw CO₂ out of the atmosphere. It's a more affordable route but the durability is lower and the risk is higher when disease or fire can reverse the removal.

A multi-year contract to buy a set volume of credits over time, often at an agreed price. Gives buyers supply certainty and helps fund longer-term projects.

The duration that removed CO₂ remains stored and unavailable to return to the atmosphere. Ranges from decades to millennia depending on the storage method and technology used.

Forward or pre-purchase agreements for credits that have been (a) verified but not yet issued, or (b) expected in the future based on projected project performance. Delivery and retirement happens later, once the registry issues the credits

The project has been designed and documented but has not yet been validated by a third-party auditor

The project's design has already been validated. The project is operational, and is now preparing for the verification audit

A third-party auditor has confirmed the reported emission reductions/removals for a specific monitoring period

Carbon credits that have already been issued and are sitting in a registry account, ready for transfer immediately

The year when carbon removal or emissions reduction occurred. Important for pricing and compliance as more recent vintages often have higher value and acceptance.