Glossary

A principle stating that the CO2 reductions or removals achieved by a project would not have occurred without the project's intervention.

Afforestation and reforestation are two strategies aimed at increasing the Earth's tree cover to combat climate change by natural means. Afforestation involves planting trees on lands that have not been forested for a long period, while reforestation involves replanting trees in areas where forests have been depleted, typically due to logging or fires. Both practices play a crucial role in sequestering carbon dioxide (CO2) from the atmosphere since trees absorb CO2 as they grow, thereby reducing the amount of greenhouse gases that contribute to global warming.

The emissions that would be released into the atmosphere under a 'business as usual' scenario, without the implementation of any specific interventions or reduction strategies.

Biochar is a form of charcoal produced from plant matter that can be intentionally stored in soil as a means of removing carbon dioxide (CO2) from the atmosphere. Unlike the charcoal used for heating and cooking, biochar is produced under specific conditions with the intention of storing it in soil as a means to sequester carbon for hundreds to thousands of years.

A market mechanism focussed on improving or maintaining biodiversity levels

Blue carbon refers to carbon captured by the world’s oceanic and coastal ecosystems, including mangroves, salt marshes, seagrasses, and kelp forests. These ecosystems are highly efficient at absorbing and storing carbon dioxide (CO2) from the atmosphere, often at a faster rate than land-based forests. The concept of blue carbon highlights the critical role that marine and coastal ecosystems play in mitigating climate change, making the conservation and restoration of these habitats essential.

A specified amount of carbon credits in a project that are reserved and not sold, to be used in the event of any unforeseen loss or damage that may occur to the project.

Carbon Dioxide (CO2) is a Greenhouse Gas (GHG) that is produced both naturally and through human activities. Carbon Dioxide Equivalent (CO2e) is a measure that is used to standardise and compare GHGs.

The Corporate Sustainability Reporting Directive (CSRD) is a pivotal component of European regulation that defines how companies disclose their sustainability practices. It builds upon and replaces the Non-Financial Reporting Directive (NFRD). Despite its groundbreaking nature in 2014, the NFRD left gaps in capturing the full scope of corporate sustainability impacts, and the CSRD addresses these shortcomings, aiming to bring sustainability reporting to the same level of transparency and standardisation as financial reporting.

The process of measuring and documenting the emissions of a company, entity, or product

Carbon credits are tradable certificates representing the reduction, avoidance, or removal of one tonne of CO2 from the atmosphere. They are used by companies to compensate for unavoidable emissions or to contribute towards global climate change mitigation efforts.

The state in which CO2 emissions are neutralised by an equal amount of CO2 being removed from the atmosphere.

A reduction in emissions that is achieved through external carbon avoidance or carbon removals, with the intention of compensating for residual emissions.

Carbon removal actively extracts CO2 and GHG from the atmosphere, while carbon avoidance prevents future emissions.

The process of capturing atmospheric CO2 and storing it in a different form. It can be done through both natural means as well as man-made, technological means.

The climate benefit equation is used to determine the net climate benefit of a project, ensuring that claims of environmental impact are both accurate and credible. It is a crucial step in Senken’s due diligence process when selecting carbon credit projects.

Any positive outcomes that a carbon credit project generates in addition to the primary goal of emission reductions or removals, aligning with social, environmental, and economic development goals.

A regulatory system enforced by governments where a cap is set on emissions, and the unused amount can be traded.

Activities and projects aimed at preserving ecosystems, biodiversity, and natural carbon stocks. This often involves protecting forests, wetlands, and other natural habitats from deforestation, degradation, and other threats.

The total amount of both direct and indirect emissions generated by a company/organisation.

Permanently removing a carbon credit from circulation after it has been used to offset/neutralise emissions.

Decarbonisation refers to the process of reducing carbon dioxide emissions by minimising the use of carbon-based fuels and increasing the adoption of renewable energy sources, energy efficiency measures, and other technologies.

Double counting occurs when an emission reduction or removal is claimed more than once.

ESG stands for Environmental, Social, and Governance. It is a framework for assessing how well companies perform in their sustainability, ethical practices, and corporate governance.

The European Sustainability Reporting Standards (ESRS) were developed as a crucial part of the Corporate Sustainability Reporting Directive (CSRD) to standardise and enhance transparency in sustainability reporting across the European Union.

Enhanced weathering is a cutting-edge method of carbon capture and storage using natural geological processes to remove carbon dioxide (CO2) from the atmosphere. This method involves the distribution of finely ground silicate rocks, such as basalt or olivine, over large areas of land, where they chemically react with CO2 in the presence of water to form stable carbonate minerals. This process not only permanently sequesters atmospheric CO2 but also delivers the added benefit of releasing nutrients into the soil, potentially enhancing agricultural productivity.

A regulatory system governing the compliance carbon credit market enforced by the European Union, where a cap is set on emissions, and the unused amount can be traded.

A set of legislative proposals aimed at aligning the European Union with its ambitious climate targets, including an overall goal of achieving at least a 55% reduction in emissions by 2030.

The GHG Protocol, or the Greenhouse Gas Protocol, is the most widely used international accounting tool for government and business leaders to understand, quantify, and manage greenhouse gas emissions.

A deceptive marketing tactic of providing misleading information about how sustainable products, services, or practices are.

The residual emissions arising from sectors and processes where reducing emissions is particularly challenging.

The Integrity Council for the Voluntary Carbon Market (ICVCM) is an independent governance body dedicated to upholding credibility, transparency, and quality of carbon credits within the voluntary carbon market (VCM). The ICVCM sets rigorous standards and guidelines that ensure carbon credits can reliably contribute to global climate goals. By focusing on high standards and integrity, the ICVCM plays a key role in building trust among companies, investors, and governments within the VCM.

Integrating carbon offset projects directly into a company's own supply chain or operational process rather than investing in external projects.

The Intergovernmental Panel on Climate Change (IPCC) is a United Nations body, established to assess scientific information on climate change.

Unintentional increase in emissions outside of a carbon credit project's scope that takes place as a result of the project's implementation.

A framework for assessing the environmental impacts associated with all stages of a product's life cycle.

Carbon credit projects undergo continuous Monitoring, Reporting, and Verification (MRV) in order to assess their performance and maximise their integrity.

A tool that graphically represents various emissions reduction measures and the subsequent cost or saving associated with each strategy.

Methodologies in the voluntary carbon market act as comprehensive procedures that guide the calculation, reporting, and verification of carbon credit projects. These guidelines are crucial for maintaining the integrity and transparency of carbon markets, providing a standardised approach to quantifying the environmental impact of projects. This ensures that carbon credits are backed by real, measurable, and verifiable reductions and removals.

A structured approach for companies to minimise their emissions, aligning with the path to achieving Net Zero targets.

The Non-Financial Reporting Directive (NFRD) is a part of European Union legislation that mandates large companies to disclose non-financial and diversity information.

Nature-based Solutions (NbS) make use of natural processes and ecosystems to mitigate climate change, and Technological-based Solutions (TbS) make use of engineered processes and innovative technologies to mitigate climate change.

The state where the residual amount of CO2 or GHG emissions have been neutralised by an equivalent amount that of emissions that have been removed.

Offtake agreements are contractual arrangements between a producer and a buyer to sell and purchase a project's future production. For carbon credit projects, these agreements provide companies with a guaranteed price and security in supply that might become scarce, while creating an opportunity for carbon projects to secure much-needed capital due to their proof of future sales, offering financial stability, and guaranteeing a future market for the project's outputs.

A framework designed to ensure the integrity and effectiveness of carbon offsetting efforts as part of wider strategies to achieve Net Zero emissions.

An international treaty marking a collective commitment of 196 countries to combat climate change and adapt to its effects.

A section of the Paris Agreement dedicated to creating both market and non-market mechanisms to promote international collaboration for climate action.

Peatland restoration returns degraded peatlands to their natural state, halting carbon emissions and restoring their role as crucial carbon sinks.

The longevity and durability of the emission reductions or removals of a project, based on the risk that the sequestered carbon could be re-released.

The global atmospheric conditions concerning greenhouse gas concentrations and global temperatures that existed before the widespread impact of industrialisation, often used as the baseline scenario for climate change forecasting.

The entity responsible for managing the projects that actively remove, reduce, or avoid emissions.

A database that documents the issuance, sale, transaction history, and retirement of carbon credits.

Representative Concentration Pathways (RCPs) are scenarios developed by scientists to model potential future emissions pathways based on varying levels of greenhouse gas (GHG) emissions.

The greenhouse gas (GHG) emissions that remain after all feasible measures to reduce a company's carbon footprint have been implemented.

A globally recognised framework that helps companies set science-based emission reduction goals designed to limit global warming to 1.5°C above pre-industrial levels, in line with the goals of the Paris Agreement. The SBTi plays a crucial role in driving corporate action toward meaningful and measurable reductions in greenhouse gas (GHG) emissions.

Scope 1 emissions includes direct emissions from a company's operations, Scope 2 includes emissions from electricity usage, and Scope 3 includes all indirect emissions within the company's value chain.

Shared Socioeconomic Pathways (SSPs) are narratives developed to explore potential future global developments that could affect society's ability to mitigate and adapt to climate change. SSPs complement Representative Concentration Pathways (RCP) by providing context on how societal choices could impact greenhouse gas emissions and adaptation strategies, shaping the socioeconomic landscape that leads to various emission and concentration scenarios.

Soil carbon sequestration involves removing CO2 from the atmosphere and storing it in soil, enhancing soil health and aiding in climate change mitigation.

Immediate, market-based carbon credits that allow organisations and individuals to neutralise their carbon footprint. These credits are available for immediate purchase and use. Generated from projects that either reduce, avoid, or remove emissions from the atmosphere, through activities such as reforestation, biochar, blue carbon, and enhanced weathering, spot credits provide a real-time solution for carbon neutralisation needs and sustainability strategies

A global initiative adopted by the UN comprising of 17 interconnected goals designed to achieve a more sustainable future by 2030.

The residual emissions that cannot be eliminated due to technological limitations or integral process requirements.

The Voluntary Carbon Markets Integrity Initiative (VCMI) helps companies make credible and transparent claims about their carbon credits and contributions towards climate targets. It was established to address concerns about the integrity of voluntary carbon markets and ensures that these markets contribute meaningfully to net zero targets by providing clear, science-based guidelines for corporate climate actions.

A project's vintage refers to the year in which the emission avoidance or removal took place and the carbon credits were issued.

The Voluntary Carbon Market (VCM) is a mechanism that enables organisations and individuals to purchase carbon credits to neutralise their emissions. These carbon credits are generated from projects that either reduce, avoid, or remove emissions from the atmosphere through activities such as reforestation, biochar, blue carbon, and enhanced weathering.