Additionality – a foundational concept for renewable energy incentives and carbon offsets, Carbon accounting expert Michael Gillenwater says additionality is “the defining characteristic of an offset, as it justifies the creation of a tradable environmental instrument that represents a real benefit that can compensate for harm occurring elsewhere.” To be considered additional under traditional criteria, a project’s carbon benefits (abatement or reduction) must be above and beyond a baseline scenario of future emissions without the project which, in turn, requires supportable assumptions about both “business as usual” and the lower-carbon reality promised by the offset project.

Carbon Inset – An inset, in the context of sustainability and greenhouse gas emissions, refers to emission reduction activities that a company undertakes within its own supply chain or direct operations, rather than offsetting emissions through external projects. Insetting aims to improve sustainability by reducing or removing emissions within a company’s own ecosystem rather than compensating through unrelated carbon offset projects.

Carbon Locked – A carbon-locked industry refers to sectors or industries that are heavily reliant on fossil fuels and have infrastructures, technologies, and policies deeply embedded in carbon-intensive practices. These industries face significant challenges in transitioning to low-carbon alternatives due to financial, technological, and regulatory commitments that “lock” them into high carbon emissions.

Carbon Offset – A carbon offset is a reduction in greenhouse gas emissions made to compensate for emissions produced elsewhere. Essentially, when an individual or company cannot completely eliminate their carbon footprint, they can “offset” their emissions by supporting projects that reduce or capture emissions, balancing out their impact on the environment.

Carbon Reduction Direct Investments (CRDI) – allow your company to invest directly in new carbon verified reduction for net-negative aircraft operations and/or other net-zero initiatives. Because Carbon Reduction Direct Investments allow premium financial annually return, they can reduce or eliminate operational costs of aircraft or other emitting assets and/or deliver directed community benefits.

Carbon Reduction Offtake (CRO) – a type of multi-year agreement for fixed-price carbon removal capacity. Allows for prudent ESG planning and security, as well as reserve carbon removal to accommodate growth and/or wider removal scope.

Enhanced Carbon Offsetting (ECO) – Large emitters typically rely on offsets for at least a portion of their carbon footprint management. But offsets aren’t created equal – as United Airlines CEO Scott Kirby said: “We’ve changed the conversation on climate change … we are committed to getting to 100% without using carbon offsets, because the truth is that most carbon offsets aren’t even real.” Enhanced offsets are dual certified to eliminate the drawbacks and risk of traditional offsets.

GHG Protocol – is the most widely used international accounting and reporting standard for measuring greenhouse gas (GHG) emissions. Created in partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD), the GHG Protocol provides tools, standards, and guidelines for organizations, governments, and other entities to measure, manage, and report their GHG emissions accurately and consistently.

Inflation Reduction Act – August 2022 legislation with an array of decarbonization incentives including up to 60% tax credits on sustainability investments.

Insetting – Using a verified carbon reduction project to reduce carbon within a company’s sphere of influence in a way that directs benefits within that community, commodity, geography, or organization. Insetting’s different additionality certification criteria are simplify ESG reporting and maximize impact and allow for positive ROI on carbon reduction projects and directed benefits to company constituents.

Net-zero – refers to the balance between the amount of greenhouse gases (GHGs) emitted into the atmosphere and the amount removed from it. Achieving net-zero emissions means that any GHG emissions produced are offset by an equivalent amount of removal, effectively reducing the net impact on the climate to zero. This goal is central to limiting global warming and mitigating climate change impacts.

Renewable Energy Credit (REC) – In certain states, each MWh of power earns one REC which is salable, typically to an in-state utility which will use it to comply with renewable portfolio standard (RPS) regulations.

Verified Carbon Reduction (VCR) – a carbon reduction method like some nature-based programs (eg certain forestry) or active carbon capture that has been independently verified so as to be eligible for corporate ESG carbon reduction and/or incentives.

Zero Carbon Asset Tethering (ZCAT) – a new framework designed for owner/operators of hard-to-abate assets like aircraft, factories, trucks, freighters, etc. Achieves true net-zero (or net negative) emissions by tethering an emitting asset (or fleet) with ongoing carbon-reducing assets. Delivers real impact, excellent economics, scalability and transparency while simplifying GHG accounting.