These terms provide a foundational understanding of key concepts related to carbon credits and sustainability, beneficial for both newcomers and those familiar with the industry.

Environmental, Social, and Governance (ESG)ESG (Environmental, Social, and Governance) is a framework for assessing a company’s sustainability, ethics, and overall impact. It helps investors and stakeholders understand how a company manages environmental risks, social responsibilities, and governance practices—playing a key role in responsible, sustainable investing.

Global Warming Potential (GWP)

Global Warming Potential (GWP) measures how much heat a greenhouse gas traps in the atmosphere compared to CO2 over a set time, usually 100 years. It expresses each gas’s impact as a multiple of CO2’s effect, helping compare their contributions to global warming.

Carbon Footprint

Carbon footprint is the total amount of greenhouse gas emissions, measured in CO2e, caused directly or indirectly by an activity, product, organisation, or individual. It reflects the climate impact across a full life cycle—from resource extraction to disposal.

Voluntary Market

Voluntary Carbon Market (VCM) is a decentralised system where individuals and organisations buy and sell carbon credits to offset emissions. Unlike government-mandated programs, VCMs are driven by voluntary climate commitments, helping participants support emission reduction projects and move toward carbon neutrality or net-zero goals.

CO2e (Carbon Dioxide Equivalent)

CO2e (Carbon Dioxide Equivalent) is a standard unit for measuring the impact of greenhouse gases (GHGs) on climate change. It expresses each gas’s effect based on its Global Warming Potential (GWP)—how much heat it traps compared to CO2 over 100 years. CO2 has a GWP of 1, Methane (CH4) is 28, Nitrous Oxide (N2O) is 298 and Sulphur Hexafluoride (SF6) is 22,800, etc.

Sustainability

Sustainability means meeting today’s needs without compromising future resources. Guided by four pillars—environmental, economic, social, and human—it aims to protect the planet and improve quality of life for generations to come.

Greenhouse Gases (GHGs)

Greenhouse gases (GHGs) are gases in the atmosphere that trap heat and cause the greenhouse effect, leading to global warming. Key GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and water vapor (H2O)

Carbon Sequestration

Carbon sequestration is the process of capturing and storing carbon dioxide (CO2) from the atmosphere—naturally or through human intervention—to help reduce emissions and combat climate change

Carbon Offset

Carbon offset allows individuals or organizations to compensate for their emissions by funding projects that reduce or remove greenhouse gases elsewhere—essentially balancing out their carbon footprint through climate action

Green Footprint

It refers to an organisation or individual’s impact on the environment, especially when it comes to resource use and waste generation, for example the amount of natural resources that they use and the amount of harmful gases that they produce

Cap and Trade

Cap and trade is a market-based system to reduce greenhouse gas emissions. The government sets a total emissions cap and issues allowances, which companies can buy or sell. This creates a financial incentive to cut emissions—companies that pollute less can sell their extra allowances, while others must buy more if they exceed their limits.

Photocatalytic Oxidation

Photocatalytic oxidation (PCO) is a process that uses light and a catalyst—usually titanium dioxide (TiO₂)—to break down pollutants into safer substances like carbon dioxide and water. It’s especially effective for removing low-concentration airborne contaminants such as volatile organic compounds (VOCs).