CAP Carbon Markets & Trading Flashcards

What does 'net zero' mean in the context of corporate carbon commitments?

Answer: Achieving a balance between greenhouse gas emissions produced and emissions removed from the atmosphere

Net zero means balancing the quantity of greenhouse gases emitted with an equivalent amount removed, so there is no net addition to atmospheric concentrations.

What is the Science Based Targets initiative (SBTi)?

Answer: A framework helping companies set GHG reduction targets aligned with climate science and the Paris Agreement

SBTi provides a framework for companies to set greenhouse gas reduction targets consistent with limiting global warming to 1.5°C or well below 2°C as required by climate science.

In carbon auditing, what does 'permanence' mean?

Answer: The assurance that carbon stored or reduced will remain out of the atmosphere for a defined long-term period

Permanence ensures that carbon reductions or removals—especially in forestry and land-use projects—remain durable and are not subsequently reversed.

Which of the following is a US-focused voluntary carbon offset registry?

Answer: Climate Action Reserve (CAR)

The Climate Action Reserve (CAR) is a US-based offset registry that develops standards and registers verified GHG emission reduction projects in North America.

What is a 'carbon neutral' claim typically based on?

Answer: Reducing emissions as much as feasible and purchasing verified offsets to balance remaining emissions

Carbon neutrality is typically achieved by reducing emissions where possible and purchasing verified offsets to compensate for remaining unavoidable emissions.

What does the term 'market mechanism' refer to in climate policy?

Answer: An approach using price signals or tradeable permits to incentivize cost-effective emission reductions

Market mechanisms use economic incentives—such as carbon pricing or tradeable allowances—to allow emission reductions to occur wherever they are most cost-effective.