Carbon Credits Glossary

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There are currently 4 names in this directory beginning with the letter P.

Paris Agreement
An international treaty on climate change that superseded the Kyoto Protocol. Signed in 2016, the agreement has been ratified by all but six countries in the world. The long-term goal of the Paris Agreement is to keep global warming below 2°C, and the treaty contains various provisions to enforce this target.

A model scenario for climate change based on current scientific understanding. The 1.5°C pathway, as laid out by the Intergovernmental Panel for Climate Change, forecasts a 50-66% chance that global warming will remain at or below 1.5°C by the year 2100 after a brief overshoot. This pathway would require the entire world to cut greenhouse gas emissions by 7.6% each year, halving emissions by 2030 and reaching net zero status by 2050.

Performance Standard
Rather than limiting projects to those that wouldn’t be viable without the carbon market, the performance standard counts as offsets any energy reduction that’s less than a specified threshold. In some cases, a project may be good for the environment, but would have happened regardless, independent of assistance from the carbon market. As a result, projects with the performance standard generally aren’t as “high quality” as more rigorously certified carbon reduction projects.

Permanent Offsets
Offsets that are long-lasting or guaranteed to be replaced in the event of a loss. This is one of four factors to consider when acquiring carbon offsets.