Carbon Glossary

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 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.

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.

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.