Please post comments if you see something that is missing
Additional: one of the qualities of an offset is that it is additional to “business as usual.”
Allowance: In a cap and trade system, an allowance is a legal right to pollute that is issued by a government agency. Each allowance credit permits the owner to pollute an allotted amount, unless the owner chooses to retire the allowance or sell it.
Cap and Trade: This is an artificial marketplace designed to reduce pollution by paying people who reduce pollution with money from polluters.
CFI: “Carbon Financial Instrument,” this is the trademarked name for a carbon offset credit on the Chicago Climate Exchange
Carbon Footprint: The amount of greenhouse gas emitted each year through direct (such as driving) and indirect (such as electrical purchases) sources.
Carbon Offsets: Represents the legal rights to greenhouse gas pollution that can be purchased or sold. Do not confuse with renewable energy credits (REC) which do not represent any legal requirement to reduce greenhouse gas.
CER: “Certified Emissions Reduction.” This is the name for a carbon offset credit that is registered with the CDM Board of the UN Framework Convention on Climate Change and traded for compliance with the Kyoto Protocols. To be granted CER credits, a carbon offset project must be first built, then verified and approved by various bureaucracies and UN committees. The equivalent in the United States is a Chicago Climate Exchange CFI.
CO2e: CO2e is carbon dioxide equivalence, the basic unit of greenhouse gas calculated in terms of carbon dioxide because each greenhouse gas has a different potency. Also refered to as “GWP,” or Global Warming Potential.
ETS “Emissions Trading Scheme.” The EU ETS is the name given to the European Union cap and trade system that requires each country to achieve a different level of greenhouse gas reduction.
Green House Gas: There are six common greenhouse gasses- carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). Each has a different CO2 equivalence.
Kyoto Protocol: United Nations treaty that establishes a global cap and trade system for reducing green house gas.
Offsets: The reduction of overall air pollution when one party pays another party to reduce pollution on their behalf.
Renewable Energy: Energy that does not run out, such as wind, solar, hydro, bio-gas, tidal or geothermal.
REC: A “Renewable Energy Credit” is a unit of electricity measured in kilowatt hours that has been generated from a renewable source
Carbon Offset
RPS: “Renewable Portfolio Standard” is a legal requirement that exists in many states to promote renewable energy investment by mandating a percentage of energy that must come from renewable sources. A renewable portfolio standard creates a marketplace for renwable energy credits to be traded.
VER “Verified Emissions Reduction,” this is the name for a carbon offset credit that has not been through the expensive process of registration on an exchange, yet has been verified by an independent third party.