Knowledge Hub

Established under the Kyoto Protocol of the UN Framework Convention on Climate Change, the fund finances projects and programs that help vulnerable communities in developing countries adapt to climate change. Initiatives are based on country needs, views, and priorities.

A principle used in carbon offsetting to ensure that the carbon reduction or sequestration would not have occurred without the incentive provided by the sale of carbon credits. It is a key criterion for the validity of a carbon offset project.

Afforestation refers to the planting of trees in an area where there was no forest previously. Reforestation involves replanting trees in areas where forests have been cut down or degraded.

A framework for international cooperation on climate targets, allowing countries to voluntarily collaborate through a new carbon market to achieve their Nationally Determined Contributions (NDCs)

In carbon offsetting, this refers to the estimation of the amount of emissions that would have occurred in the absence of a particular carbon offset project. It is used to determine the project’s additionality and the amount of emissions reduced

Biogenic carbon dioxide generated from natural processes such as biogas or fermentation; can be captured and verified for carbon markets.

The variety and variability of life on Earth. Biodiversity typically measures variation at the genetic, species, and ecosystem level.

Energy produced from organic materials, such as plant and animal waste. It is a renewable source of energy that can help reduce greenhouse gas emissions.

A reserve of carbon credits held in trust to safeguard against reversals like fire or drought, ensuring long-term permanence.

A market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants. A central authority sets a limit or cap on the amount of a pollutant that can be emitted, and companies can trade emission permits

The process of measuring, analyzing, and reporting on an organization’s greenhouse gas emissions. This is a critical step in managing and reducing emissions and can inform strategies for carbon offsetting

A technology that can capture up to 90% of the carbon dioxide emissions produced from the use of fossil fuels in electricity generation and industrial processes, preventing CO2 from entering the atmosphere.

A permit or certificate allowing the holder to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of a mass equal to one ton of carbon dioxide. Carbon credits can be traded in the international market at their current market price.

The process of purchasing a carbon credit and then ‘retiring’ it, meaning it cannot be resold or claimed by another entity. Retirement is the final step in the offsetting process, ensuring that the emission reduction is used to compensate for an equivalent emission elsewhere.

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis. Carbon dioxide is a major greenhouse gas and its increase in the atmosphere contributes to global warming.

The financial instruments and funding mechanisms used to support the development and implementation of projects that aim to reduce carbon emissions, such as carbon offset projects.

The total amount of greenhouse gases (including carbon dioxide and methane) that are generated by our actions. The average individual, company, or product’s carbon footprint can be measured by undertaking a greenhouse gas inventory.

Reducing or offsetting emissions within a company’s own value chain rather than through external projects.

A measure of how much carbon (in CO2 emissions) is emitted per unit of another variable, such as electricity generation (kg CO2/kWh) or economic output (kg CO2/GDP).

This term is used to describe the state of an entity (such as a company, service, product, or event), where the carbon emissions caused by them have been balanced out by funding an equivalent amount of carbon savings elsewhere in the world. Carbon neutrality is achieved by calculating a carbon footprint and reducing it to zero through a combination of efficiency measures, renewable energy, and carbon offsetting.

A product for which the net carbon emissions over the entire lifecycle (including production, use, and disposal) have been calculated and offset to reach net zero emissions.

Frameworks and protocols established by regulatory bodies or organizations to ensure that carbon offset projects meet certain criteria for environmental integrity, additionality, and verifiability. Examples include the Verified Carbon Standard (VCS), Gold Standard, and the Clean Development Mechanism (CDM).

A specific project or activity designed to reduce greenhouse gas emissions or sequester carbon from the atmosphere. These projects can range from reforestation efforts to renewable energy installations and are often used in carbon offsetting programs.

A collection of carbon offsetting projects that an organization invests in or supports. This portfolio can include a variety of project types, such as renewable energy, reforestation, or community-based projects.

A method for reducing global warming emissions. It charges those who emit carbon dioxide (CO2) for their emissions. This cost is intended to encourage the reduction of greenhouse gas emissions.

The process of capturing and storing atmospheric carbon dioxide. It is one method of reducing the amount of carbon dioxide in the atmosphere with the goal of reducing global climate change.

A natural or artificial reservoir that accumulates and stores some carboncontaining chemical compound for an indefinite period. The process by which carbon sinks remove carbon dioxide (CO2) from the atmosphere is known as carbon sequestration.

An EU policy ensuring imported goods are priced according to their carbon emissions to prevent carbon leakage.

An economic system aimed at eliminating waste and the continual use of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing, and recycling to create a closed-loop system, minimizing the use of resource inputs and the creation of waste, pollution, and carbon emissions.

One of the flexible mechanisms defined in the Kyoto Protocol that provides for emissions reduction projects which generate Certified Emission Reduction (CER) units which may be traded in emissions trading schemes.

A long-term change in the average weather patterns that have come to define Earth’s local, regional, and global climates. These changes have a broad range of observed effects that are synonymous with the term global warming.

Broadly refers to local, national, or transnational financing—drawn from public, private, and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change.

Efforts to reduce or prevent the emission of greenhouse gases. Mitigation can mean using new technologies and renewable energies, making older equipment more energy efficient, or changing management practices or consumer behaviour

Going beyond achieving net zero carbon emissions to create an environmental benefit by removing additional carbon dioxide from the atmosphere.

The capacity for a socio-ecological system to absorb stresses and maintain function in the face of external stresses imposed by climate change and to adapt, reorganize, and evolve into more desirable configurations that improve the sustainability of the system, leaving it better prepared for future climate change impacts.

Refers to the degree to which a system is susceptible to, or unable to cope with, adverse effects of climate change, including climate variability and extremes. Vulnerability is a function of the character, magnitude, and rate of climate change and variation to which a system is exposed, its sensitivity, and its adaptive capacity.

The additional benefits of a climate change mitigation project or policy that are not related to the reduction in greenhouse gases. These can include improvements in health, air quality, biodiversity, or economic development.

Carbon Offsetting and Reduction Scheme for International Aviation, a global framework for aviation emission mitigation.

The process of reducing carbon dioxide emissions through the use of low carbon power sources, achieving a lower output of greenhouse gasses into the atmosphere.

Ensures agricultural or forestry commodities are produced without causing deforestation or ecosystem degradation.

The measure of how long carbon remains sequestered in a project before risk of reversal.

A measure of human demand on the Earth’s ecosystems. It compares human demand with planet Earth’s ecological capacity to regenerate. It represents the amount of biologically productive land and sea area necessary to supply the resources a human population consumes and to assimilate associated waste.

The many and varied benefits that humans freely gain from the natural environment and from properly-functioning ecosystems. These include services such as pollination of crops, clean air and water, and decomposition of wastes.

A coefficient that quantifies the emissions or removals of a gas per unit activity. Emission factors are used to estimate emissions from various sources of greenhouse gases.

A legal document that records the terms and conditions agreed upon by the buyer and seller of carbon credits generated from an emission reduction project.

A market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Companies or other entities are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount.

The strategic approach to controlling and reducing the release of greenhouse gases. It involves identifying sources of emissions, implementing practices or technologies to reduce them, and maintaining records for reporting and verification purposes.

The process of monitoring and recording the emission of greenhouse gases produced by activities such as manufacturing, energy use, and transportation. This tracking is essential for understanding and managing climate impact.

Also known as a cap-and-trade system, it’s a market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants. A central authority sets a cap on the amount of a certain pollutant that can be emitted, and companies can buy or sell permits to emit these pollutants

Using less energy to perform the same task – that is, eliminating energy waste. Energy efficiency brings a variety of benefits: reducing greenhouse gas emissions, reducing demand for energy imports, and lowering our costs on a household and economy-wide level.0

A process used to evaluate the environmental impact of a proposed project or development, taking into account inter-related socio-economic, cultural, and human-health impacts, both beneficial and adverse.

The responsible use and protection of the natural environment through conservation and sustainable practices. It implies a commitment to manage natural resources wisely and to ensure their sustainability for future generations

The responsibility to conserve natural resources and protect global ecosystems to support health and wellbeing, now and in the future

Credits generated from forestry projects that sequester atmospheric carbon in trees and soil. These projects can include reforestation, afforestation, forest management, and avoided deforestation.

A measure of how much energy the emissions of 1 ton of a gas will absorb over a given period of time, relative to the emissions of 1 ton of carbon dioxide (CO2). The larger the GWP, the more that a given gas warms the Earth compared to CO2 over that time period.

A certification body that ensures projects that reduce carbon emissions feature the highest levels of environmental integrity and also contribute to sustainable development.

Bonds specifically earmarked to be used for climate and environmental projects. These bonds are typically asset-linked and backed by the issuer’s balance sheet, and are also referred to as climate bonds.

A fund established within the framework of the UNFCCC as an operating entity of the Financial Mechanism to assist developing countries in adaptation and mitigation practices to counter climate change. The GCF is based in Incheon, South Korea, and is governed by a board of 24 members.

Energy that is produced in a manner that has less of a negative impact on the environment than traditional energy sources, such as fossil fuels. Examples include solar, wind, hydro, and geothermal energy.

A systematic accounting of the amount of greenhouse gases emitted and removed by a particular entity, system, or activity within a given timeframe.

A widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. It provides the accounting framework for nearly every GHG standard and program in the world.

A widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions. It provides the accounting framework for nearly every GHG standard and program in the world.

Gases that trap heat in the atmosphere, contributing to the greenhouse effect. The primary greenhouse gases in Earth’s atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone. These gases are responsible for the warming of the planet.

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice. Greenwashing can make a company appear to be more environmentally friendly than it really is.

A land management practice that seeks to conserve, protect, and restore habitat areas for wild plants and animals, especially conservation-reliant species, and prevent their extinction, fragmentation, or reduction in range.

Emissions that result from the activities of an entity, but occur at sources owned or controlled by another entity, such as emissions associated with purchased electricity, heat, or steam (Scope 2) or other upstream and downstream emissions (Scope 3).

An international body for assessing the science related to climate change. The IPCC was set up in 1988 by the World Meteorological Organisation (WMO) and United Nations Environment Programme (UNEP) to provide policymakers with regular scientific assessments on climate change, its implications, and potential future risks, as well as to put forward adaptation and mitigation strategies.

A global certification system verifying traceability, sustainability, and greenhouse gas performance of supply chains.

A tradable carbon unit created under Article 6.2 of the Paris Agreement, representing verified emission reductions exchanged between countries.

An international treaty adopted in 1997 in Kyoto, Japan, which extends the 1992 United Nations Framework Convention on Climate Change (UNFCCC). It commits its parties by setting internationally binding emission reduction targets. The Kyoto Protocol recognizes that developed countries are principally responsible for the current high levels of greenhouse gas emissions in the atmosphere and places a heavier burden on them under the principle of “common but differentiated responsibilities.”

Refers to the situation where a carbon offset project causes an increase in emissions outside the project boundary. For example, protecting a forest in one area might lead to deforestation elsewhere.

A technique to assess environmental impacts associated with all the stages of a product’s life from raw material extraction through materials processing, manufacture, distribution, use, repair and maintenance, and disposal or recycling.

An economy based on low carbon power sources that therefore has a minimal output of greenhouse gas (GHG) emissions into the biosphere, but specifically refers to the greenhouse gas carbon dioxide.

The structured process of quantifying project results, reporting data, and verifying it through independent auditors.

The world’s stocks of natural assets which include geology, soil, air, water, and all living things. It is from this natural capital that humans derive a wide range of services, often called ecosystem services, which make human life possible.

Refers to achieving an overall balance between emissions produced and emissions taken out of the atmosphere. Net zero is reached when the amount of greenhouse gases emitted is no more than the amount removed.

A decrease in the pH of the Earth’s oceans, caused by the uptake of carbon dioxide (CO2) from the atmosphere. This can have harmful consequences for marine life

An individual or organisation that develops projects for the purpose of reducing greenhouse gas emissions or enhancing carbon sequestration, which can then generate carbon credits.

An agreement within the United Nations Framework Convention on Climate Change (UNFCCC), dealing with greenhouse gas emissions mitigation, adaptation, and finance, starting in the year 2020. The agreement’s long-term goal is to keep the increase in global average temperature to well below 2°C above pre-industrial levels and to limit the increase to 1.5°C, recognizing that this would substantially reduce the effects of climate change. It was adopted by 196 parties at COP 21 in Paris, on 12 December 2015, and entered into force on 4 November 2016.

The assurance that the carbon removed by a project will remain stored for a long period without being released back into the atmosphere.

Systems used to convert sunlight into electricity. They use solar panels composed of a number of solar cells to supply usable solar power.

Risks resulting from climate change can be event-driven (such as increased severity of extreme weather events like cyclones and floods) or longer-term shifts in the climate (such as changes in precipitation, extreme weather variability, sea-level rise, and temperature).

The evaluation process carried out by an independent third party, before a carbon offset project begins, to verify that it is designed and planned in a way that will ensure real, measurable, and additional emissions reductions.

The process of having an independent third party assess the actual emission reductions achieved by a carbon offset project after it has been implemented. Verification ensures that the project has indeed resulted in the amount of carbon savings it claimed.

A cooperative model between government and private sector entities to finance and implement sustainability initiatives.

A mechanism developed by Parties to the UNFCCC. It aims to mitigate climate change by reducing net emissions of greenhouse gases through enhanced forest management in developing countries. The “+” signifies the role of conservation, sustainable management of forests, and enhancement of forest carbon stocks.

A conservation and rehabilitation approach to food and farming systems. It focuses on topsoil regeneration, increasing biodiversity, improving the water cycle, enhancing ecosystem services, supporting biosequestration, increasing resilience to climate change, and strengthening the health and vitality of farm soil.

Energy from sources that are naturally replenishing but flow-limited. Renewable resources are virtually inexhaustible in duration but limited in the amount of energy available per unit of time. Examples include wind, solar, biomass, geothermal, and hydroelectric power.

A market-based instrument that represents the property rights to the environmental, social, and other non-power attributes of renewable electricity generation. RECs are issued when one megawatt-hour (MWh) of electricity is generated and delivered to the electricity grid from a renewable energy resource.

Certificates that represent the environmental attributes of the power produced from renewable energy projects and are sold separately from the electricity itself.

A type of carbon offset that involves investing in renewable energy projects, such as wind, solar, or hydroelectric power, which displace fossil fuel-based electricity generation.

Kyoto Network’s framework helping organisations manage, measure, and reduce Scope 3 emissions through verified supply chain interventions.

Scope 1, 2, 3 Emissions –

Scope 1: Direct emissions from owned or controlled sources.

Scope 2: Indirect emissions from purchased energy.

Scope 3: All other indirect emissions from an organisation’s value chain.

The indirect emissions that are a consequence of the activities of the reporting company but occur from sources not owned or controlled by the company. This can include emissions related to business travel, procurement, waste, and water usage.

A collection of 17 global goals set by the United Nations General Assembly in 2015 for the year 2030. The SDGs are a call for action by all countries to promote prosperity while protecting the planet. They recognize that ending poverty and other deprivations must go hand-in-hand with strategies that improve health and education, reduce inequality, and spur economic growth – all while tackling climate

The practice of measuring, disclosing, and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development.

Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It encompasses a broad range of economic, social, and environmental objectives.

Practices that meet the needs of the present without compromising the ability of future generations to meet their own needs, particularly with regard to the use and conservation of natural resources.

The ability to track products, data, and impacts across a supply chain for full transparency.

The financial risks which could result from the process of adjustment towards a low-carbon economy. These risks may arise from policy changes, technological shifts, market responses, and changes in investor sentiment.

Open disclosure of data, results, and methodologies to ensure credibility and accountability.

An international environmental treaty adopted on 9 May 1992 and opened for signature at the Earth Summit in Rio de Janeiro from 3 to 14 June 1992. The UNFCCC objective is to “stabilize greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.”

The process of increasing and preserving open space such as public parks and gardens in urban areas for the benefit of both the environment and the residents.

A type of carbon offset exchanged in the voluntary market for carbon credits. VERs are carbon offsets that have been verified by a third party to ensure the carbon savings claimed are real, permanent, and additional.

A term sometimes used interchangeably with VER (Verified Emission Reduction), referring to a carbon offset that is exchanged in the voluntary market.

A term sometimes used interchangeably with VER (Verified Emission Reduction), referring to a carbon offset that is exchanged in the voluntary market.

A philosophy that encourages the redesign of resource life cycles so that all products are reused. The goal is for no trash to be sent to landfills, incinerators, or the ocean.