glossary of carbon accounting terms

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Carbon Offsetting

Carbon Offsetting

Carbon offsetting refers to compensating for carbon dioxide (CO2) emissions by funding projects that reduce or remove an equivalent amount of CO2 from the atmosphere. Common offsetting projects include reforestation, renewable energy, and energy efficiency initiatives. Offsetting helps mitigate the impacts of climate change by lowering atmospheric greenhouse gas levels.

FAQs

How does carbon offsetting work?

Carbon offsetting works by investing in environmental projects, such as reforestation or renewable energy, that either absorb CO2 or prevent future emissions, balancing out the emissions produced.

Why is carbon offsetting important?

Carbon offsetting is important because it provides a way to mitigate the impact of unavoidable emissions, helping to slow climate change and promote sustainable business.

What types of projects qualify for carbon offsetting?

Projects include reforestation, renewable energy development (wind, solar, hydro), methane capture from landfills, and energy efficiency improvements.

What is a carbon offset certificate?

A carbon offset certificate is a document that verifies the reduction or removal of a specific amount of CO2, usually measured in metric tons, through an accredited project.

How do businesses use carbon offsetting?

Business use carbon offsetting to mitigate the impact of emissions they can't avoid. Many offsetting projects also have a broader positive impact on people and the planet. It is crucial that companies focus on reducing emissions (not just offsetting).

Are all carbon offset programs effective?

The effectiveness of carbon offset programs varies. It is important to choose verified and reputable programs that meet international standards, such as the Gold Standard or United Nationals Clean Development Mechanism.

How is the price of carbon offsets determined?

The price of carbon offsets depends on the type of project/technology used, its location, and the certification standards it meets.

Carbon Footprint Management Software

Carbon Footprint Management Software is a digital tool designed to help businesses measure, monitor, and manage their greenhouse gas emissions. It enables businesses to track their carbon footprint, identify areas for improvement, implement reduction strategies, and report their emissions accurately. This software is essential for companies aiming to reduce their environmental impact and comply with sustainability regulations.

Digital Product Passport (DPP)

A Digital Product Passport (DPP) is a digital record that contains detailed information about a product’s lifecycle, including its origin, materials, production process, usage, and end-of-life handling. It enables transparency and traceability, helping consumers, businesses, and regulators make informed decisions about sustainability and compliance. DPPs are becoming increasingly important in promoting circular economy practices and enhancing product stewardship.

ISO 14064 is a set of international standards that provide guidelines for quantifying, monitoring, reporting, and verifying greenhouse gas (GHG) emissions and removals. It helps organizations measure their carbon footprint, set reduction targets, and ensure transparency and consistency in reporting. These standards are crucial for businesses aiming to manage and reduce their environmental impact effectively.

Carbon Reduction

Carbon reduction refers to the process of lowering the amount of carbon dioxide (CO₂) and other greenhouse gases released into the atmosphere. This is achieved through various methods, including improving energy efficiency, switching to renewable energy sources, adopting sustainable practices, and implementing carbon offsetting projects. The goal of carbon reduction is to mitigate climate change, reduce environmental impact, and promote sustainability.

Life Cycle Assessment (LCA) in Fashion

Life Cycle Assessment (LCA) in fashion is a systematic method used to evaluate the environmental impacts associated with all stages of a garment's life, from raw material extraction to production, use, and end-of-life disposal. This comprehensive assessment helps identify key areas where carbon emissions and other environmental impacts occur, enabling brands to implement more sustainable practices.

Supply Chain Carbon Accounting

Supply chain carbon accounting is the process of measuring and managing the greenhouse gas emissions produced throughout the entire supply chain of a product or service. This includes emissions from raw material extraction, production, transportation, and distribution. By tracking these emissions, companies can identify high-impact areas, implement strategies to reduce their carbon footprint, and report their environmental impact more accurately. This practice is essential for sustainability, regulatory compliance, and improving the overall environmental performance of businesses.

Procurement Policy Note (PPN) 06/21

PPN 06/21, or Procurement Policy Note 06/21, is a UK government framework requiring suppliers bidding for public sector contracts over £5 million to have a Carbon Reduction Plan (CRP) and commit to achieving Net Zero emissions by 2050.

Carbon Offsetting

Carbon offsetting refers to compensating for carbon dioxide (CO2) emissions by funding projects that reduce or remove an equivalent amount of CO2 from the atmosphere. Common offsetting projects include reforestation, renewable energy, and energy efficiency initiatives. Offsetting helps mitigate the impacts of climate change by lowering atmospheric greenhouse gas levels.

Carbon Negative

Carbon negative refers to the state of reducing/removing more carbon dioxide (CO2) from the atmosphere than is emitted. This is achieved through activities such as carbon capture, reforestation, and renewable energy initiatives that prevent/remove or 'offset' CO2 emissions. Being carbon negative contributes to reducing overall greenhouse gas levels, helping mitigate climate change.

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