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Climate Glossary

 

It’s not easy to navigate through the climate friendly statements. We have therefore put together a simple glossary with the mostfrequently used words for your help. See it as a guide to help you navigate and find your climate friendly path.
Carbon allowances

All EU countries plus Iceland, Liechtenstein and Norway, have a shared EU Emissions Trading System. Allowance-based systems work where greenhouse gas emissions are regulated and the number of carbon allowances each entity, region, or country is allowed to emit is determined. After each year, a company must surrender enough allowances to cover all its emissions, otherwise heavy fines are imposed. If a entity reduces its emissions, it can keep the spare allowances to cover its future needs or sell them to another entity that is short of allowances.