FAQ’s, Acronyms and Abbreviations

Acronyms and Abbreviations

AFOLU     Agriculture, Forestry, and Other Land Use

BCR     BioCarbon

CAB     Conformity Assessment Bodies

CDM     Clean Development Mechanism

CH4     Methane (a detrimental Greenhouse Gas)

CO2     Carbon dioxide (a detrimental Greenhouse Gas)

CO2e     Equivalent Carbon Dioxide (The Standard Unit for Emissions Comparisons)

FAO     Food and Agriculture Organization of the United Nations

GHG     Greenhouse Gases (we focus on the 6 major impacting GHGs)

HCV     High Conservation Value

HFCs     Hydrofluorocarbons (a detrimental Greenhouse Gas class)

IAF     International Accreditation Forum

ILO     International Labour Organization

IPs     Indigenous Peoples

IPCC     Intergovernmental Panel on Climate Change

ISO     International Organization for Standardization

IUCN     International Union for Conservation of Nature

LCs     Local Communities

LMT     Landscape management tools

PFCs     Perfluorocarbon (a detrimental Greenhouse Gas class)

N2O     Nitrous Oxide (a detrimental Greenhouse Gas)

NCRE     Non-Conventional and Renewable Energy Sources

REDD+     Reduction Emissions from Deforestation, Degradation and forest conservation, sustainable management, or improvement of carbon stocks in forests

SDGs     Sustainable Development Goals (generally refers to the UN Sustainable Development Goals)

SF6     Sulfur Hexafluoride (a detrimental Greenhouse Gas)

UNFCCC     United Nations Framework Convention on Climate Change

VCC     Verified Carbon Credits

FAQ’s  … Frequently Asked Questions

What are Carbon Credits?
Carbon Credits are documented efforts that offset, reduce or abate greenhouse gas emissions; one Carbon Credit represents a unit of measurement that corresponds to one metric ton of Carbon Dioxide (CO2) or its equivalent in other greenhouse gases. 

How do Carbon Credits work?
Carbon Credits work by creating a financial incentive for reducing greenhouse gas emissions. When an individual or organization purchases carbon credits, they are essentially funding projects and activities which have measurably helped to mitigate climate change. Renewable energy generation, afforestation and reforestation efforts, or initiatives aimed at improving energy efficiency are all examples of beneficial activity types. The reduction in emissions achieved by these projects is then documented, quantified, audited and converted into equivalent carbon offsets, These carbon credits are then exchanged (bought and sold) on carbon markets.

How do Carbon Credits support climate action and sustainability?
They incentivize pollution reduction and support renewable energy, conservation, and forestry initiatives.

What is the difference between Carbon Credits and carbon offsets?
Compliance Grade Carbon Credits are fully documented serial numbered tradeable permits, while carbon offsets directly refer to the activity which reduce CO2 emissions through projects like tree planting.

How are Carbon Credits valued and traded in carbon markets?
Prices depend on market demand, project quality, and verification rigor and creditability applied.

What role do governments and global initiatives play in Carbon Credit regulations?
Governments set emissions limits, create compliance markets, and support voluntary markets.

How do companies and individuals use Carbon Credits to reduce their carbon footprint?
Companies buy credits to offset emissions, often as part of corporate social responsibility or regulatory compliance.

What is the role of forests in generating Carbon Credits?
Forests act as carbon sinks, absorbing CO2, and forest-based projects generate credits through preservation, afforestation, and reforestation.

How do reforestation and afforestation contribute to carbon credit creation?
Planting new trees (afforestation) or replanting in deforested areas (reforestation) sequesters CO2, creating carbon credits.

What are the key challenges and criticisms of the carbon credit system?
Issues include greenwashing, inconsistent verification, and market speculation.

How do verification and certification ensure the legitimacy of Carbon Credits?
Independent bodies verify projects to ensure emissions reductions are real, additional, and permanent.

What is the future outlook for Carbon Credits and forestry-based solutions?
Growing demand and stricter regulations suggest an expanding role for forest-based carbon credits in climate policy.