Additionality
The condition that a project's emission reductions would not have occurred without the revenue or support provided by carbon units. Read the article: Climate project additionality: how to demonstrate it
Annual company report
A report on the organization's emissions for the year across its facilities, in PDF and DOCX. In the platform, an administrator creates it on the organization's GHG page: the data is checked for completeness first, and if the report is created with incomplete data, the gaps are listed in it. Read the article: Closing a facility's year and the annual company report
Article 6.2
Cooperative approaches between Parties to the Paris Agreement involving transfers of ITMOs and corresponding adjustments. Read the article: Article 6 of the Paris Agreement: mechanisms 6.2 and 6.4
Article 6.4 / PACM
The UN mechanism that issues carbon units under the oversight of the Supervisory Body. Read the article: Article 6 of the Paris Agreement: mechanisms 6.2 and 6.4
Attribution
The share of a financed company's or asset's emissions attributed to a bank or investor in proportion to its investment (PCAF). Read the article: PCAF attribution formula for financed emissions, with examples
Authorized CBAM declarant
An importer (or its representative) authorized to import CBAM goods into the EU above the threshold during the definitive period. Read the article: CBAM transitional and definitive periods: key dates
Base year
The year against which an organization's emissions are compared; it is recalculated after significant changes in boundaries or methodology. Read the article: Base year and base-year recalculation: rules and an example
Baseline
The emissions scenario without the project; emission reductions are calculated against it. Read the article: Climate project baseline: how to define and calculate it
Carbon footprint
The total emissions of an organization or product over a period, expressed in CO₂e. Read the article: Corporate carbon footprint: what it is and why it matters
Carbon unit (carbon credit)
A verified reduction or removal of 1 t CO₂e, recorded in a registry. Read the article: Carbon units: what they are and how they come into being
Carbon unit registry
A system that records the issuance, holding, transfer and retirement of units, each with a unique serial number. Read the article: Registries of carbon units, projects and climate claims
CBAMCarbon Border Adjustment Mechanism
The EU's carbon border mechanism for imports of carbon-intensive goods. Read the article: CBAM: what it is and who the EU mechanism affects
CCPCore Carbon Principles
The ICVCM's integrity principles for carbon units. Read the article: ICVCM integrity principles (Core Carbon Principles, CCP)
Closing the year for a facility
Completing a facility's accounting for the reporting year, after which the year's data is view-only. In the platform, the year is closed by an administrator or by the facility's responsible employee with edit rights; only an administrator can reopen it. Read the article: Closing a facility's year and the annual company report
CO₂ equivalent (CO₂e)
The unit in which emissions of different gases are added up, taking their GWP into account. Read the article: Greenhouse gases and CO₂ equivalent: how GWP works
Completeness check
A check that a facility's data for the year has no gaps: each month has consumption entered or is marked “No consumption”, all sources are calculated, and documents are attached to the required fields. It runs before a facility's year is closed and before the company report is created. Read the article: Closing a facility's year and the annual company report
Corresponding adjustment
An adjustment to the selling country's national accounts so that a transferred reduction is not counted twice. Read the article: Corresponding adjustments: what they are
Double counting
Counting the same reduction more than once, through double issuance, double use or double claiming. Read the article: Leakage, permanence and double counting in climate projects
Embedded emissions
Direct and indirect emissions released in producing a good, including those of its precursors; the basis for CBAM calculations. Read the article: CBAM goods and embedded emissions: how to calculate them
Emission factor
The amount of emissions per unit of activity, for example kg CO₂e per kWh or per m³ of gas. Read the article: Emission factors: where they come from and how to choose one
Equity share approach
A consolidation approach under which emissions are accounted for in proportion to the share of equity held. Read the article: Organizational boundaries: operational and financial control
EVICEnterprise value including cash
Enterprise value including cash: the denominator of the attribution factor for listed companies under PCAF. Read the article: PCAF attribution formula for financed emissions, with examples
Facility
A site of the organization, such as a boiler house, workshop, warehouse, office or vehicle fleet, for which emissions are accounted. In the platform, each facility has a location and ownership details and can be assigned a responsible employee; data is entered for each facility month by month. Read the article: Facilities in the platform: creation wizard, map and responsible person
Financed emissions
Emissions of companies and assets attributed to a bank or investor through its loans and investments (Scope 3, Category 15). Read the article: PCAF: financed emissions of banks and investors
Financial control
A consolidation approach based on the right to direct an operation's financial and operating policies in order to benefit from its activities. Read the article: Organizational boundaries: operational and financial control
Global warming potential (GWP)
The warming impact of a gas relative to CO₂ over a 100-year horizon; used to convert emissions into CO₂ equivalent. Read the article: Greenhouse gases and CO₂ equivalent: how GWP works
Greenwashing
Misleading climate or environmental claims that are not backed by data. Read the article: How to avoid greenwashing in corporate climate claims
ITMOInternationally transferred mitigation outcome
A mitigation outcome transferred between countries under Article 6.2. Read the article: Corresponding adjustments: what they are
Leakage
An increase in emissions outside the project boundary caused by the project itself. Read the article: Leakage, permanence and double counting in climate projects
Location-based method
Calculating Scope 2 emissions using the average emission factor of the grid in the region where the energy is consumed. Read the article: Scope 2: location-based and market-based methods
Market-based method
Calculating Scope 2 emissions using contractual instruments and energy attribute certificates for the purchased energy. Read the article: Scope 2: location-based and market-based methods
Materiality
The threshold at which an error or omission could change the decisions of a report's users. Read the article: Verifying a GHG inventory under ISO 14064-3
Monitoring plan
A project's list of parameters, methods, measurement frequency, responsible persons and quality control procedures. Read the article: Climate project monitoring plan: what it should contain
MRVMeasurement, reporting and verification
Measurement, reporting and verification: a closed cycle for substantiating emissions and reductions. Read the article: What is MRV: measurement, reporting and verification of emissions
NDCNationally determined contribution (NDC)
Nationally determined contribution: a country's climate commitments under the Paris Agreement. Read the article: Article 6 of the Paris Agreement: mechanisms 6.2 and 6.4
Operational control
A consolidation approach that covers all facilities whose operating policies the organization determines. Read the article: Organizational boundaries: operational and financial control
PCAF data quality score
A score from 1 (verified data) to 5 (sector-level estimate) assigned to each portfolio position. Read the article: PCAF data quality score: the 1–5 scale
Permanence
The durability of a reduction or removal over time, and the safeguards in case it is reversed. Read the article: Leakage, permanence and double counting in climate projects
Precursor
An input material of a CBAM good whose embedded emissions are added to the emissions of the finished product. Read the article: CBAM goods and embedded emissions: how to calculate them
Primary data
Data from the organization's own documents and measurements: invoices, certificates of completion and meter readings. Read the article: Data quality in emissions accounting: primary data and estimates
Retirement of units
The permanent cancellation of a unit in a registry in support of a claim; a retired unit can no longer be transferred. Read the article: Retiring carbon units and making climate claims
Scope 1
Direct emissions from the organization's own sources: fuel combustion, process emissions, leaks and its own vehicles. Read the article: Scope 1, 2 and 3: how an organization's emissions are divided
Scope 2
Indirect emissions from the generation of purchased electricity, heat, steam and cooling. Read the article: Scope 1, 2 and 3: how an organization's emissions are divided
Scope 3
Other indirect emissions across the value chain, grouped into 15 categories. Read the article: Scope 3: the 15 emission categories and where to start
Source list confirmation
Confirmation that a facility's list of emission sources for the year is complete; the year cannot be closed without it. In the platform, the list is confirmed automatically once the year has ended and accounting for all Scope 1 and 2 sources is complete. Read the article: Closing a facility's year and the annual company report
Uncertainty
A quantitative estimate of how far a result may deviate from the true value because of the data and methods used. Read the article: Data quality in emissions accounting: primary data and estimates
Validation
An independent assessment of a project before or at the start of implementation, covering the soundness of the baseline, the monitoring plan and the assumptions. Read the article: Validation and verification of climate projects: what is the difference
Verification
An independent check of reported emissions or reductions for a past period at a specified level of assurance. Read the article: Validation and verification of climate projects: what is the difference
Vintage
The year (or period) in which the reduction represented by a carbon unit was achieved. Read the article: Carbon units: what they are and how they come into being