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Glossary

Welcome to our Glossary, your reference for the terminology used on this site. Whether you're a seasoned expert or a newcomer in this fast-changing field, our glossary provides concise explanations of essential terms, people and frequently used abbreviations, enabling you to navigate with ease

A

Auctions

 Public sales where goods or assets, in this case, carbon allowances or credits, are sold to the highest bidder.


Aviation Industry

 The economic sector that involves the use of aircraft, especially airplanes, for transportation purposes.


B

Barclays Bank’s Environmental Markets Team

 A team led by Louis Redshaw for ten years, during which time it became the world’s largest carbon business by traded volume.


Bespoke Carbon Consultancy

 Custom-tailored consultancy services provided by Redshaw Advisors to meet the unique needs of clients in relation to carbon markets, including understanding legal details of emissions trading contracts, designing risk management plans, and building liquidity in emerging carbon markets.


Bespoke Consultancy

 Customized advice and solutions designed to address the specific needs of a client or business.


Biomethane

 Also known as green gas, biomethane is produced by the anaerobic decomposition of organic matter, such as landfill waste or agricultural waste. It is a renewable energy source that can be used in the same way as natural gas.


Blue Carbon Projects

 Initiatives aimed at preserving or restoring coastal ecosystems like mangroves, tidal marshes, and seagrass meadows that can sequester carbon dioxide.


Business Development Manager (BDM)

 A professional tasked with developing business solutions and maintaining relationships with clients.


C

Cancellation

 In the context of EACs, cancellation is the process by which a certificate is retired. This means the certificate cannot be sold, given, or otherwise transferred to another party. When an EAC is cancelled, the environmental attributes of the electricity it represents are officially claimed by the end user.


Carbon Broker

 An intermediary or agent that facilitates the buying and selling of carbon credits between buyers and sellers.


Carbon Certification

 The process of certifying that a product, service, or company as a whole, has achieved carbon neutrality, or has reached a certain standard in terms of its carbon emissions or carbon offsetting efforts.


Carbon Constraints

 Restrictions or limitations on the amount of carbon emissions that can be produced by a country, a sector, or a business. This is in line with efforts to combat climate change.


Carbon Costs

 The financial implications associated with the emission of carbon dioxide, typically through taxes or through the requirement to purchase carbon credits.


Carbon Credit

 A certificate that allows the holder to emit one tonne of carbon dioxide. Credits are awarded to countries or groups that have reduced their greenhouse gases below their emission quota.


Carbon Credit Supply Dynamics

 The factors influencing the supply of carbon credits to the carbon markets, including governmental policies, market demand, and changes in industrial practices.


Carbon Credits

 A certificate that allows the holder to emit one tonne of carbon dioxide. Carbon credits can be traded on international markets, and their value is influenced by supply and demand dynamics.


Carbon Footprint Risk

 The potential adverse effects on a company due to its greenhouse gas emissions or 'carbon footprint'.


Carbon Footprinting

 The process of calculating the total amount of greenhouse gases produced directly and indirectly by a company, individual, event, or product.


Carbon Intensity

 The amount of carbon (CO2) emissions produced per unit of another variable such as energy use, economic output, or population.


Carbon Investing

 The act of investing in carbon credits or other assets related to carbon emissions, with the expectation that these assets will increase in value over time.


Carbon Market

 A system in which countries or companies can trade carbon emission allowances, offsetting their own emissions.


Carbon Market Analysis

 The process of examining and interpreting data from carbon markets, often to understand trends and make predictions about future performance.


Carbon Market Design

 The structure and rules of a carbon market, which can include the types of allowances and offsets that can be traded, the cap on emissions, and the penalties for non-compliance.


Carbon Markets

 An exchange where rights to emit carbon dioxide can be traded.


Carbon Neutrality

 Achieving a state in which the total amount of carbon dioxide or other carbon compounds emitted into the atmosphere is balanced by actions to reduce or offset these emissions.


Carbon Offsetting

 A method of compensating for emissions of CO2 by investing in projects that remove or prevent an equivalent amount of CO2 from the atmosphere.


Carbon Portfolio Valuations

 The process of determining the value of a portfolio of carbon credits or allowances.


Carbon Price Forecasts

 Predictions of the cost associated with emitting one tonne of carbon dioxide into the atmosphere. These predictions can help businesses prepare for potential future costs.


Carbon Pricing

 The cost assigned to carbon pollution to encourage polluters to reduce the amount of greenhouse gas they emit into the atmosphere.


Carbon Procurement Strategies

 Strategic plans designed to optimize the process of acquiring carbon credits or allowances.


Carbon Reduction Legislation and Taxes

 Laws and taxes imposed by nations to limit carbon emissions. The specifics of these laws and taxes vary from country to country.


Carbon Risk

 The potential negative impact on a company's financial or operational standing due to climate change and carbon emissions, including potential regulations, fines, and changes in market preferences.


Carbon Risk Audit Report

 A detailed report delivered by Redshaw Advisors that addresses the specific carbon exposure needs of each client, taking into account the company’s carbon exposure, budget, and any legislative changes in the CO2 market.


Carbon Risk Exposure

 The potential financial loss that a company could suffer due to carbon-related risks, such as regulatory changes or market forces related to climate change.


Carbon Support Program (CSP)

 A program by Redshaw Advisors that provides support to companies aiming to manage their carbon emissions effectively to enhance their sustainability initiatives.


Carbon Trading

 The process of buying and selling credits that permit an entity to emit a certain amount of carbon dioxide or other greenhouse gases.


Carbon Training

 Educational services that provide an understanding of carbon markets, their mechanisms, and their impact.


Carbon-Neutral Sourcing

 The practice of procuring goods and services in a way that minimizes carbon emissions, often with the aim of achieving a carbon-neutral supply chain.


CBAM Authority

 The authority responsible for managing and overseeing the EU CBAM, including facilitating transactions involving CBAM certificates.


Civil Court Cases

 Legal disputes that involve private disputes between parties—such as individuals, organizations, or both—where the person who feels wronged seeks a legal remedy.


Clean Development Mechanism (CDM)

 One of the 'flexibility mechanisms' set up under the Kyoto Protocol to allow industrialised countries with a greenhouse gas reduction commitment to invest in emission reduction projects in developing countries.


Climate Markets & Investment Association (CMIA)

 An international trade association representing financial institutions, investment funds, and other service providers in the climate change policy and investment sectors.


CNETS

 China's national carbon trading market.


Compliance

 The act of adhering to and demonstrating adherence to a rule, such as a policy, standard, or law. In the context of carbon markets, this typically refers to mandatory regulations that require certain businesses to limit their carbon emissions.


Compliance Cycle

 This typically refers to the cycle of activities required for a company to be in compliance with certain regulations or standards.


Compliance Markets

 Markets where environmental credits, such as carbon credits, are traded. They are so-called because businesses use them to comply with legal limits on the amount of carbon they can emit.


Compliance Procurement

 The act of acquiring goods or services that meet specific regulatory or compliance requirements.


Consultancy & Training

 Services provided by Redshaw Advisors to deliver customized solutions, advice, and training to help businesses navigate the complexities of carbon markets.


COP21 Paris Agreement

 A legally binding international treaty on climate change adopted by 196 parties at the 21st Conference of the Parties of the UN Framework Convention on Climate Change in Paris, in 2015. The goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.


Corporate Social Responsibility (CSR) Plan

 A company's self-regulated business model that helps a company be socially accountable to itself, its stakeholders, and the public. In context, this often includes a plan for carbon offsetting and neutrality.


CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation)

 An international agreement to offset aviation CO2 emissions by purchasing carbon credits from various environmental projects around the world.


Criminal Court Cases

 Legal disputes that involve the state or government prosecuting a person for a crime that has been committed.


D

Data Checks Spreadsheet

 A document filled out by clients each quarter, enabling Redshaw Advisors to generate a tailored report based on the provided data.


E

Embedded Cost

 The price of a product or service, including both the explicit costs (materials, labour, etc.) and the implicit costs, such as the environmental impact of its production or delivery.


Emission Trading Systems (ETS)

 A system that caps the total level of greenhouse gas emissions and allows industries with low emissions to sell their extra allowances to larger emitters, fostering an economic incentive to reduce emissions.


Emissions Markets

 Markets where emission allowances are bought and sold. These markets are set up to reduce pollution by providing economic incentives.


Emissions Trading Scheme

 A market-based approach to controlling pollution by providing economic incentives for reducing the emissions of pollutants.


Emissions Trading System (ETS)

 A system that allows countries or groups of countries to create trading systems in which they grant entities (like businesses) allowances to emit a specific amount of a substance. When emissions need to be reduced, governments can lower the number of allowances to achieve this.


Emissions Trading Systems

 A system that sets a limit on the amount of a certain type of pollution that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. This system brings real economic threats for non-compliant businesses.


Energy Aspects

 A leading independent global energy research consultancy that provides data-driven analysis and strategic advice to the energy market, including the carbon market.


Energy Attribute Certificates (EACs)

 These are instruments that provide information about the environmental attributes of one megawatt-hour (MWh) of electricity generation from renewable sources. EACs are used globally to authenticate claims of renewable electricity usage.


Environmental Sustainability

 A state of causing little or no damage to the environment and therefore able to continue for a long time.


ETD (Energy Taxation Directive)

 A European directive that sets out the framework for taxing energy products used as motor fuel or heating fuel, and electricity.


ETS (Emissions Trading System)

 A system that sets a limit on the amount of a certain type of pollution that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount.


ETS Training

 Educational programs designed to enhance understanding of Emission Trading Schemes (ETS) and the carbon market.


EU Allowances (EUAs)

 These are emission permits issued under the EU ETS. Each EUA grants the holder the right to emit one tonne of carbon dioxide, or the equivalent amount of other greenhouse gases.


EU Carbon Border Adjustment Mechanism (CBAM)

 A policy proposed by the European Union to impose levies on carbon-intensive goods imported into the EU. The CBAM is part of the EU's broader strategy to reduce greenhouse gas emissions and promote a green economy.


EU Emissions Trading Scheme (EU ETS)

 The first and largest international system for trading greenhouse gas emission allowances, with the goal of reducing industrial greenhouse gas emissions cost-effectively.


EU ETS

 The European Union Emissions Trading System, the first and largest international system for trading greenhouse gas emission allowances, with the goal of reducing industrial greenhouse gas emissions cost-effectively.


EU ETS (EU Emissions Trading System)

 The EU ETS is a cornerstone of the European Union's policy to combat climate change and a key tool for reducing industrial greenhouse gas emissions cost-effectively.


EU ETS (European Emission Trading Scheme)

 The first and largest international system for trading greenhouse gas emission allowances, with the goal of reducing industrial greenhouse gas emissions cost-effectively.


EU ETS (European Union Emissions Trading System)

 A cornerstone of the European Union's policy to combat climate change and a key tool for reducing greenhouse gas emissions cost-effectively.


EU ETS Registry

 The EU Emissions Trading System (EU ETS) Registry is an online platform where all emission allowances are held. The platform is also used for the annual surrender of these allowances for compliance with the EU ETS.


EUA

 European Union Allowances, tradable permits that give the holder the right to emit one tonne of carbon dioxide, or the equivalent amount of a different greenhouse gas.


EUA Price Forecasts

 Predictions on the price movements of European Union Allowances.


European Commission

 The European Commission is the executive branch of the European Union, responsible for proposing legislation, implementing decisions, upholding the EU treaties, and managing the day-to-day business of the EU.


Expert Witness Services

 A professional service offered by an individual who is considered an expert in their field to provide their expertise in legal matters.


F

Feebate

 A system of charges and rebates whereby energy-efficient or environmentally-friendly practices are rewarded while failure to adhere to such practices is penalized.


Fit For 55 Packages

 A comprehensive set of legislative proposals by the European Commission aimed at reducing the European Union’s greenhouse gas emissions by at least 55% by 2030.


Fit-for-55

 A comprehensive legislative change proposed by the European Commission in the European Union's laws aiming to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.


Flat Rate

 A pricing structure that charges a single fixed fee for a service, regardless of usage.


Forecasts

 Predictions about future events or trends, based on current and historical data. In this context, it refers to predictions about future movements in the carbon market.


Free allocation forecasts

 Predictions on the allocation of free emissions allowances by the EU.


G

Global Environmental Markets

 Markets around the world that trade in environmental commodities and services, such as carbon offsets and renewable energy certificates.


Government Agency

 An organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as environmental regulations.


Green Gas Certificate

 A certificate that proves a certain amount of gas has been produced from renewable sources. It allows consumers to claim renewable gas consumption and report reduced Scope 1 emissions.


Greenhouse Gas Protocol (GHG-P)

 An international standard for how to measure, manage, and report greenhouse gas emissions.


Guarantee of Origin (GO)

 A certificate issued for every unit of renewable electricity generated, stating its source and how it was produced. These are used to prove that a certain quantity of electricity was generated from renewable sources.


Guarantees of Origin (GOs)

 These are a type of EAC used in Europe. They are issued by the European Energy Certificate System (EECS) and certify that a given share or quantity of energy was produced from a specific renewable energy source.


Guidance Documents

 These are documents that provide advice or instructions, usually in a complex or specialist area. These can provide critical information on topics like legal obligations or best practices.


H

Hedging Behaviours

 Strategies used by investors to protect against potential losses. In the context of carbon markets, this might involve buying a range of different types of carbon credits to protect against changes in their value.


Hedging Strategies

 Methods used by businesses to reduce risk, in this case, carbon-related risks.


I

ICAO (International Civil Aviation Organisation)

 A specialized agency of the United Nations that sets standards and regulations necessary for aviation safety, security, efficiency, and regularity, as well as for aviation environmental protection.


IMO (International Maritime Organisation)

 A specialized agency of the United Nations responsible for measures to improve the safety and security of international shipping and to prevent marine pollution from ships.


Independent and Balanced Point of View

 Providing an objective and impartial perspective without favoring any parties involved in the dispute.


Industrial Installations

 Sites where industrial production activities take place, which can be significant sources of carbon emissions.


International Emissions Trading Association (IETA)

 A non-profit organization dedicated to the establishment and operation of effective international trading systems for greenhouse gas emissions.


International Renewable Energy Certificates (IRECs)

 These are a type of EAC used worldwide. They are issued by the International REC Standard and certify that a given share or quantity of energy was produced from a specific renewable energy source.


Investing in Carbon

 The act of exploring and capitalizing on investment opportunities in the rapidly expanding carbon market. Redshaw Advisors assists clients in making informed decisions in this regard.


Investor

 An individual or organization that puts money into financial schemes, shares, or property with the expectation of achieving a profit.


L

Louis Redshaw

 Founder & CEO of Redshaw Advisors, and a leading advocate for using carbon markets to combat climate change.


M

Mandatory Compliance

 Compliance that is legally enforced and not optional.


Maritime Shipping Industry

 A global industry responsible for the transportation of goods and passengers over water.


Market Design

 The process of setting up rules and procedures for a market, in this case, carbon markets.


Market-Making

 The act of providing a platform for buyers and sellers to trade commodities or financial instruments, in this case, carbon credits.


Methane

 A potent greenhouse gas with a global warming potential much greater than that of carbon dioxide. It is emitted during the production and transport of coal, oil, and natural gas.


Minimum Trade Size

 The smallest quantity of a particular commodity or financial instrument that can be traded. In the context of Redshaw Advisors, this term indicates they've eliminated any minimum requirements, making carbon trading accessible for all sizes of businesses.


MRV Requirements

 Monitoring, Reporting, Verification requirements - a term used to describe the processes for ensuring that greenhouse gas emissions data is accurately reported and verified.


N

National Administrators

 These are national bodies responsible for the day-to-day management of the EU ETS Registry. They are typically governmental or semi-governmental organisations.


Net Zero Markets

 Another venture launched by Louis Redshaw in 2021, aimed at transforming the voluntary carbon market through increased standardisation and exchange tradability of carbon offset solutions.


Net-Zero Emissions

 Achieving a balance between the amount of greenhouse gas emissions produced and the amount removed from the atmosphere.


Nitrous Oxide

 A powerful greenhouse gas emitted during agricultural and industrial activities, combustion of fossil fuels and biomass, as well as during the treatment of wastewater.


Non-compliance Penalties

 Consequences faced by businesses or individuals who fail to comply with regulations or laws. In the context of the EU CBAM, these could include fines or other penalties for failing to properly account for carbon emissions or buy sufficient CBAM certificates.


O

Offshore Service Vessels

 Ships designed to provide services to offshore oil and gas platforms.


P

Paris Agreement

 A legally binding international treaty on climate change adopted by 196 parties at the 21st Conference of the Parties of the UN Framework Convention on Climate Change in Paris, in 2015. The goal is to limit global warming to well below 2, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.


Plannet Zero

 A company launched by Louis Redshaw in 2021, offering advice and solutions to businesses on their path to achieving net zero carbon emissions.


Pre-Conference Training

 Training sessions or workshops that are held before the main conference or meeting.


Price Predictions

 Forecasts about how the price of a particular asset, such as carbon credits, will change in the future.


Price Signalling

 An economic concept where a change in the price of a good or service sends a signal to the market about its demand and supply. In this case, it refers to countries using carbon markets to signal the need to reduce emissions.


Procurement & Trading

 The process of acquiring and trading carbon credits. Redshaw Advisors, with their extensive network and market expertise, facilitate this process to help businesses meet their emission reduction goals.


Procurement Services

 A function within an organization that manages and oversees the purchasing of goods and services.


Project Development

 The process of planning and executing a specific project to its completion. In the context of carbon markets, this could refer to projects designed to reduce carbon emissions or generate carbon credits.


Q

Qualitative Analysis

 The use of non-numeric data (such as text, video, or audio) to understand concepts, opinions, or experiences. It also refers to the way people express their opinion about a particular product or service.


Quantitative Analysis

 The use of mathematical and statistical methods (mathematical finance) in finance. Those working in the field are quantitative analysts (or, in financial jargon, a quant).


R

RE 100 Initiative

 A global initiative led by The Climate Group in partnership with CDP. RE100's purpose is to gather influential businesses to commit to 100% renewable electricity.


Reconciliation Procedure

 In the context of the CBAM, a process where importers demonstrate actual emissions (as opposed to estimates or default values) and surrender the appropriate number of CBAM certificates.


Redshaw Advisors

 A carbon market advisory company that offers various services like carbon offsetting, carbon trading, risk management, carbon consultancy and training.


Redshaw Advisors Expert Services Ltd

 A subsidiary of Redshaw Advisors that provides comprehensive consultancy and expert witness services for disputes related to carbon markets.


Registry Account

 In context, an account in which a company or individual holds their carbon credits or CBAM certificates. These accounts are part of a system to track the ownership and trading of carbon credits or CBAM certificates.


Registry Support

 A service offered by Redshaw Advisors to assist in managing and navigating carbon credit registries, ensuring compliance and efficient handling of carbon assets.


Regulatory Updates

 Information about changes to rules or regulations that businesses need to comply with.


Renewable Energy Certificates

 A type of energy certificate that proves that 1 megawatt-hour (MWh) of electricity was generated from a renewable energy resource.


Renewable Energy Certificates (RECs)

 These are a type of EAC used in North America. They are issued by Green-e, a trusted global leader in clean energy certification. Each REC represents the environmental benefits of 1 MWh of renewable energy.


Renewable Energy Guarantees of Origin (REGOs)

 Similar to GOs, these are used in the UK to show that a quantity of electricity has been produced from renewable sources.


Renewable Energy Markets

 Markets where commodities like electricity, generated from renewable resources such as wind and solar, are traded.


Research and Advisory Services

 Professional services that involve conducting in-depth research into a topic and providing advice based on the findings.


Risk Management

 The process of identifying, assessing, and controlling threats to an organization's capital and earnings. In the context of carbon investing, this could involve strategies to protect against changes in the value of carbon credits.


Risk Management & Strategy

 Services by Redshaw Advisors aimed at helping businesses identify and manage carbon-related risks and devise effective strategies to maximise opportunities and minimise liabilities.


Risk Management Advice

 Guidance provided by professionals to help identify, assess, and mitigate risks that could negatively impact an organization's operations or objectives.


S

SAF (Sustainable Aviation Fuel)

 A type of biofuel that is designed to be more sustainable than traditional aviation fuels. It can be derived from a range of sustainable sources and is seen as one of the primary ways to reduce emissions in the aviation industry.


Scope 1, 2 & 3 Emissions

 The three categories of emissions as defined by the Greenhouse Gas Protocol. Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions that occur in the value chain of the reporting company, including both upstream and downstream emissions.


Scope 2 Emissions

 The greenhouse gas emissions from purchased electricity, steam, heat, and cooling consumed by the reporting entity.


SMEs

 Small and Medium Enterprises.


South Korean Electricity Generators Association

 An association of power generating companies in South Korea.


Standardised Trading Documentation

 Documentation that outlines the terms and conditions of trading in standardized language to ensure clarity and mutual understanding between parties.


Supranational Organisations

 Organisations that operate across multiple countries, such as the United Nations or the European Union.


T

Teach-Ins

 A type of group learning, often informal, that arose from the U.S. civil rights and anti-Vietnam War movements. It usually involves lectures, debates, and discussions about a particular issue.


The WeeklyRed

 A resource provided by Redshaw Advisors offering comprehensive and timely updates on the carbon market from around the world.


Trade Association Seminars

 Seminars organised by or for members of a specific industry. These seminars are typically meant to provide industry-specific training, information or networking opportunities.


Trading team

 The team responsible for buying and selling carbon credits and managing carbon portfolios.


Training Programmes

 Educational courses designed to improve an individual's or a team's skills or knowledge in a particular area.


Transitional Period

 A specified time period, in this case from October 2023 to December 2025, during which businesses can adjust to new regulations before they are fully enforced.


Transparent Pricing

 A clear and upfront pricing strategy where all costs are agreed upon in advance, with no hidden charges. This strategy is utilized by Redshaw Advisors to ensure trust and confidence in their services.


Tricorona

 An emissions reduction project developer involved with Louis Redshaw.


U

UK and EU ETS

 The Emission Trading Systems of the United Kingdom and the European Union, respectively. These systems cap the total level of greenhouse gas emissions and allow industries with low emissions to sell their extra allowances to larger emitters.


UK ETS (UK Emissions Trading System)

 The UK's system for limiting greenhouse gas emissions following its departure from the EU, effectively replacing the EU ETS for UK-based companies.


User Guides

 Documents designed to assist users in understanding how to use a system, software or platform. In this context, the user guides are designed to help companies understand how to use the EU ETS Registry effectively.


V

Voluntary Carbon Market

 A market where carbon offsets are traded but there is no mandatory cap on the emissions for the parties involved.


Voluntary Compliance

 Compliance that is not legally enforced but is still adhered to, often due to ethical considerations or future-proofing business operations.


Voluntary Market

 A market in which businesses voluntarily offset their carbon emissions, often in order to meet self-set sustainability targets or improve their brand image.


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