CAP Carbon Markets & Trading Flashcards
6 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CAP Carbon Markets & Trading flashcards as text
What is the primary mechanism of a cap-and-trade system?
Answer: Setting a limit on total emissions and allowing entities to buy and sell allowances
Cap-and-trade sets an aggregate emissions ceiling while allowing flexibility through the trading of allowances between regulated entities.
What does a carbon offset represent?
Answer: A verified reduction or removal of one metric ton of CO2e achieved to compensate for emissions elsewhere
A carbon offset represents a verified one-ton CO2e reduction or removal that can be used to compensate for emissions occurring elsewhere.
Which of the following is a leading voluntary carbon market standard used in the US?
Answer: Verified Carbon Standard (Verra VCS)
Verra's Verified Carbon Standard (VCS) is a leading voluntary market standard widely used for certifying offset projects in the US and globally.
What is 'additionality' in carbon offsetting?
Answer: The requirement that an offset project achieves reductions that would not have occurred without the carbon credit incentive
Additionality ensures that offset projects deliver genuine emission reductions beyond what would have happened under a business-as-usual scenario.
What is the Regional Greenhouse Gas Initiative (RGGI)?
Answer: A mandatory cap-and-trade program covering power sector CO2 in northeastern US states
RGGI is a mandatory cap-and-trade program covering CO2 emissions from the power sector across participating northeastern US states.
What does 'vintage' refer to in the context of carbon credits?
Answer: The year in which the emissions reduction or removal occurred
Vintage refers to the year the emissions reduction or removal was achieved, which can affect a credit's price and acceptability to buyers.