Green Terminology: 20 Commonly Used Green Terms

Environmental Category

1. Greenhouse Gases (GHG) refer to gases that can absorb and trap heat in the Earth's atmosphere, causing a phenomenon known as the "greenhouse effect," which leads to an increase in global temperature and is a major cause of climate change and global warming. It consists of 7 main gases controlled under the Paris Agreement: carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF₆), and nitrogen trifluoride (NF₃).
2. Carbon Footprint refers to the amount of greenhouse gases generated by an organization's activities or products, both directly and indirectly, throughout their life cycle, which contributes to climate change. It is expressed in tons or kilograms of carbon dioxide equivalent (CO₂e). For organizations, the measurement of carbon footprint defines the scope of GHG emissions activities according to the GHG Protocol, which is divided into 3 scopes:

• Scope 1: Direct GHG emissions from activities operated or owned by the organization, such as on-site fuel combustion.
• Scope 2: Indirect GHG emissions from external energy consumption, such as electricity, heat, or steam.
• Scope 3: Indirect GHG emissions from other activities in the supply chain, such as employee travel, goods transportation, or the use of products manufactured by the organization.

1. Carbon Accounting refers to the process of measuring, recording, monitoring, and reporting the amount of greenhouse gas (GHG) emissions resulting from various activities of an organization or product.
2. Carbon Credit refers to a unit used to offset greenhouse gas emissions, which involves buying or selling the right to emit greenhouse gases obtained from environmental projects that can reduce or sequester emissions, such as reforestation projects, renewable energy projects, or energy efficiency projects. 1 credit = 1 tCO₂e of carbon reduction or absorption.
3. Carbon Offset refers to actions taken to reduce greenhouse gas emissions from activities that an organization cannot reduce on its own, by purchasing carbon credits from various projects. For example, GHG emissions from air travel that cannot yet be fully carbon neutral. The purchased carbon credits must be "retired" to ensure that they will not be reused (Double Counting) or resold in the future. Carbon offsetting should be a supplementary step after direct emission reduction and should not replace proactive emission reduction.
4. Sustainability refers to a business development approach that focuses on long-term impact reduction, which involves the balanced and responsible management and use of resources to maintain the balance of the environment, society, and economy.
5. Circular Economy refers to an economic development concept that aims to maximize the use of resources efficiently, cost-effectively, and sustainably, instead of a linear economy that uses and discards resources, focusing on waste reduction.

Energy Category

1. Renewable Energy refers to energy from natural sources that are inexhaustible and can be replenished, such as solar power, wind power, hydropower, and biomass energy. Renewable energy is a key component in reducing reliance on fossil fuels.
2. Energy Efficiency refers to using less energy to achieve the same or better results without affecting the quality or performance of work. The main goal of energy efficiency is to reduce energy waste, unnecessary energy loss, and help reduce costs, as well as mitigate environmental impacts. For example, using LED bulbs instead of fluorescent or incandescent bulbs, as LED bulbs use 50-80% less energy but provide the same illumination, resulting in lower electricity bills and reduced greenhouse gas emissions.
3. Decarbonization is the process of reducing carbon dioxide emissions from various activities that release greenhouse gases. The goal of decarbonization is to mitigate the effects of climate change by using innovation and technology that improve energy efficiency with the least environmental impact, such as using renewable energy.

Finance Category

1. Green finance refers to the use of capital or investment to support projects aimed at reducing environmental impacts, such as investments in renewable energy or forest conservation, focusing specifically on environmental impacts.
2. Sustainable finance is a crucial mechanism that supports finance and investment for organizations to develop projects focused on promoting sustainable economic development and efficient resource utilization. Sustainable Finance is part of Green Finance but has a broader scope, incorporating ESG factors into financial or investment considerations and decisions. Examples of financial instruments in Sustainable Finance include Green Bonds, Social Bonds, Sustainability-linked Loans, Impact Investing, and Carbon Pricing.
3. Carbon tax refers to a mechanism for taxing carbon dioxide (CO₂) and other greenhouse gas emissions from products, with a fixed price per unit. This helps producers predict costs. Carbon taxation incentivizes producers and consumers to switch to more environmentally friendly renewable energy with lower carbon taxes than energy from fossil fuels, which have high production costs.
4. Emission Trading System (ETS) refers to a mechanism that allocates "Allowances" to each company or entity under a controlled amount of greenhouse gas emissions (known as "Cap"), which will decrease annually to control overall greenhouse gas emissions. If an organization emits more greenhouse gases than allowed, it must purchase additional allowances from other organizations that have successfully reduced their GHG emissions. The trading of these allowances is determined by market mechanisms, where prices fluctuate according to market supply and demand. This stimulates competition in GHG emission reduction because organizations that can reduce emissions more than required will have the opportunity to sell their surplus allowances and generate revenue.

Business Operations Category

1. ESG refers to a concept of sustainable organizational development, focusing on three key areas:

• Environment: Reducing environmental impact.
• Social: Caring for society and communities.
• Governance: Transparency and good governance.

1. Sustainable Development Goals (SDGs) are 17 goals set by the United Nations (UN) that cover social, economic, and environmental development, such as poverty eradication and resource conservation.
2. Greenwashing refers to misleading information or misrepresenting an organization's performance to create a positive image regarding the environmental impact of its products or the organization itself.

Climate Action Category

1. Paris Agreement emerged from COP21 in 2015, with 197 countries signing to set a common goal of limiting the global temperature increase to well below 2°C and striving for 1.5°C compared to pre-industrial levels. This agreement provides a global cooperation framework for reducing greenhouse gas emissions and addressing the impacts of climate change.
2. Net Zero Goals refer to balancing the amount of greenhouse gases emitted into the atmosphere and the amount absorbed, emphasizing minimizing emissions in all sectors before offsetting the remaining portion through permanent carbon removal methods such as reforestation and carbon capture technologies. This goal is a practical approach that supports the objectives of the Paris Agreement to achieve long-term sustainability.
3. Carbon Neutrality refers to balancing the amount of greenhouse gases emitted into the atmosphere and the amount absorbed, by offsetting unavoidable emissions through the purchase of certified carbon credits. The goal of Carbon Neutrality is considered a short-term goal that organizations or countries can achieve quickly without immediately reducing all greenhouse gas emissions. However, Carbon Neutrality should only be the first step towards the Net Zero goal, which emphasizes genuine emission reduction and long-term sustainable development.

Knowledge Snippet

The first step in reducing greenhouse gas emissions is to accurately and comprehensively measure your Carbon Footprint to understand which activities or processes within your organization have the greatest environmental impact. Measuring your carbon footprint allows organizations to identify sources of GHG emissions and use this data to effectively plan environmental impact reduction.

Carbonwize platform helps your organization accurately measure and track its carbon footprint with easy and fast usage. Our platform features a comprehensive database of emission factors and modern processing technology, along with an automated system that connects to your organization's software and hardware, to help your organization analyze and manage greenhouse gas emissions efficiently.

Start your journey towards sustainability today by choosing Carbonwize, which not only helps you reduce your environmental impact but also enhances your organization's credibility and transparency in the eyes of stakeholders worldwide!

Sources: UNFCCC - Key Aspects of the Paris Agreement, Office of Natural Resources and Environmental Policy and Planning