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ETS is a tool used to set a cap on total emissions and create a market where companies can buy and sell allowances as part of a cap-and-trade system.

REDD+ stands for Reducing Emissions from Deforestation and Forest Degradation, a mechanism aimed at incentivizing the conservation and sustainable management of forests.

Carbon offsets are environmental projects that prevent or reduce the emission of CO2e elsewhere, which can be credited against a company's own emissions to reduce its net impact.

The act of buying and selling emission allowances or credits in the carbon market. It aims to reduce emissions by setting a price on carbon and allowing trading for flexibility.

VERs are carbon credits that are validated and verified by independent third-parties under voluntary programs, not by regulatory frameworks.

The CDM is a framework under the Kyoto Protocol allowing industrialized countries to invest in emission reduction projects in developing countries and earn carbon credits (CERs) in return.

The process of capturing and storing atmospheric CO2e. Natural sequestration occurs in forests, oceans, and soil, while artificial sequestration involves technology.

CERs are carbon credits issued by the Clean Development Mechanism (CDM) of the UN for emission reductions from projects in developing countries that can be used in compulsory carbon markets.

A market for trading carbon credits that is not mandated by a government policy, where entities voluntarily offset their emissions by purchasing carbon credits.

A carbon tax directly sets a price on carbon by taxing greenhouse gas emissions, with the aim of encouraging businesses and individuals to reduce their carbon footprints.

A multi-stakeholder partnership that provides standards and guidance for companies and governments to measure and manage greenhouse gas emissions.

A carbon credit represents the right to emit one metric tonne of carbon dioxide equivalent (CO2e). Companies can offset their emissions by purchasing carbon credits.

JI is a mechanism under the Kyoto Protocol that allows industrialized countries to meet part of their emission reduction targets by investing in emission reduction projects in other industrialized countries.

Being carbon neutral means having a balance between emitting carbon and absorbing carbon from the atmosphere in carbon sinks, resulting in a net-zero carbon footprint.

A carbon market refers to a trading system designed to reduce greenhouse gas emissions where companies can buy or sell carbon dioxide equivalent (CO2e) emission allowances or credits.

A carbon allowance is a permit that allows a company or entity to emit a specific amount of CO2e and can be traded in the carbon market.

Carbon leakage refers to the situation where, as a result of stringent climate policies, businesses transfer production to countries with laxer emission constraints, potentially leading to an overall increase in emissions.

A carbon footprint is the total amount of greenhouse gases, including carbon dioxide and methane, emitted by an individual, organization, event, product, or process directly or indirectly.

A system where a government or authority sets a limit (cap) on emissions which decreases over time and allows companies to trade emission allowances within this cap to incentivize reductions in emissions.