Carbon Sector
A Lexicon of Carbon Terms
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Hari Srinivas |
| Continuing Research Series E-217. March 2025 |
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Abstract This collection presents a structured exploration of 25 interlinked concepts under the broad theme of carbon and its role in climate governance, technological innovation, and sustainable development. From mechanisms like carbon markets and offset systems to scientific processes such as carbon sequestration and fertilization, the entries cover institutional, behavioral, economic, and ecological dimensions. The collection serves as a reference framework to understand the multi-scalar, multi-stakeholder dynamics of carbon management in the face of climate change.
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IntroductionCarbon has become a central axis around which global environmental, economic, and social systems are being reconfigured. As societies confront the escalating urgency of climate change, the governance of carbon emissions - through tools like cap-and-trade schemes, carbon taxes, and carbon banks - has emerged as both a policy imperative and a contested terrain. These frameworks aim to allocate emissions rights, promote low-carbon transitions, and shape global carbon flows through pricing, regulation, and trade.
Complementing institutional mechanisms are technological solutions and ecological processes, such as carbon capture and storage (CCS), carbon injection, and carbon sequestration. These approaches are designed to reduce the carbon load already in the atmosphere or prevent further emissions from hard-to-abate sectors. They are increasingly seen as essential components in achieving net-zero targets, especially when combined with natural climate solutions like carbon farming and forest-based carbon sinks.
Figure 1: Carbon Management FrameworkAt the societal level, concepts like the carbon footprint, carbon diet, and carbon neutral behavior capture the significance of individual and organizational contributions to climate goals. Together, these concepts create a multi-level tapestry that reflects the deeply embedded nature of carbon in everyday life, institutional planning, and planetary systems. The entire collection builds a conceptual bridge from understanding carbon's role in natural cycles to shaping the future of sustainable economies.
The 25 carbon terms presented in this lexicon are illustrated in Table 1 and Figure 2 below.
Table 1: Grouped by Functional Category
Functional Category Carbon Terms Institutional and Market Instruments
(Governance)Carbon cap-and-trade,
Carbon credits,
Carbon bank,
Carbon market,
Carbon tax,
Carbon trading,
Carbon declarationTechnological and Scientific Processes
(Technology)Carbon capture and storage (CCS),
Carbon sequestration,
Carbon injection,
Carbon fertilization,
Carbon sink,
Carbon cycleBehavioral and Educational Concepts
(Education)Carbon footprint,
Carbon neutral,
Carbon positive,
Low carbon diet,
Carbon diet,
Carbon intensity,
Carbon free,
Carbon future, Low,
Carbon economy, LowNature-Based and Hybrid Approaches Carbon farming,
Carbon sink
Figure 2: Unifed Carbon Strategies
Figure 2 illustrates a multidimensional framework for achieving Comprehensive Carbon Management through four interlinked strategies. First, Institutional and Market Instruments emphasize governance frameworks that regulate and ensure compliance in carbon markets. Second, Technological and Scientific Processes focus on the development and deployment of innovative technologies for carbon capture and reduction. Third, Behavioral and Educational Concepts highlight the importance of educational initiatives aimed at fostering carbon-conscious behavior and public awareness. Lastly, Nature-Based and Hybrid Approaches integrate natural solutions with technological advancements to enhance carbon sequestration. Collectively, these four pathways converge to form a holistic approach to managing carbon effectively across policy, technology, education, and ecological domains.
→ Click on any of the 25 carbon terms listed below to see details
▼ Carbon bankA system that stores or trades carbon credits to manage emissions more effectively.
Description: A carbon bank is a conceptual or institutional mechanism that stores and manages carbon credits or emissions allowances, functioning somewhat like a financial bank. The idea is to stabilize carbon markets by regulating the flow of carbon units through strategic withdrawal or injection, acting as a buffer against market volatility. Carbon banks can also be used to incentivize emissions reductions or reward sequestration efforts over time.
Examples / Statistics: The European Commission has explored the idea of a carbon bank within its Emissions Trading System (ETS) to help manage surplus allowances. Similar models are being considered in Canada and Australia as part of their broader carbon pricing frameworks.
Level of Implementation: Mostly national or regional; pilot models under discussion at global forums.
Actors / Stakeholders: Governments, carbon market regulators, businesses with large emissions, environmental economists.
Related Terms: Carbon credits, carbon market, carbon sequestration, carbon offset.
▼ Carbon cap-and-tradeA market-based approach that sets a limit on emissions and allows trading of allowances.
Description: Cap-and-trade is a policy mechanism that sets a limit (cap) on total carbon emissions and allows companies to buy and sell permits (trade) to emit CO2 within that limit. The cap gradually decreases over time to reduce total emissions. The trading component ensures that reductions happen where they are most cost-effective.
Examples / Statistics: The EU ETS, launched in 2005, covers over 10,000 power stations and industrial plants in 31 countries. California's program has helped reduce greenhouse gas emissions by over 10% since 2013.
Level of Implementation: Regional and national; some global linkages emerging.
Actors / Stakeholders: Governments, regulated industries, brokers, climate policy think tanks.
Related Terms: Carbon tax, emissions trading, carbon credits, carbon market.
▼ Carbon capture and storage (CCS)Technology that traps CO2 emissions from sources like power plants and stores them underground.
Description: CCS is a set of technologies designed to capture carbon dioxide emissions from industrial and energy-related sources before they reach the atmosphere. The CO2 is then transported and stored underground in geological formations. CCS is a key strategy for reducing emissions from hard-to-decarbonize sectors such as cement and steel.
Examples / Statistics: Globally, there are more than 30 large-scale CCS facilities either operating or under development. The Petra Nova plant in Texas captured over 1 million tons of CO2 per year before being mothballed in 2020 due to economic factors.
Level of Implementation: National and global, especially in industrial economies.
Actors / Stakeholders: Energy companies, heavy industries, climate scientists, regulators.
Related Terms: Carbon sequestration, negative emissions, carbon injection, CCSU (Carbon Capture, Storage, and Utilization).
▼ Carbon creditsTradable permits that allow holders to emit a specific amount of carbon dioxide.
Description: A carbon credit represents the right to emit one metric ton of CO2 or an equivalent amount of another greenhouse gas. Credits are issued through verified projects that reduce, remove, or avoid emissions and are traded on carbon markets to help entities meet reduction targets.
Examples / Statistics: In 2023, the voluntary carbon market was valued at over USD 2 billion. Projects range from renewable energy in India to reforestation in Kenya, each generating credits that can be purchased by corporations to offset emissions.
Level of Implementation: Global and national; strong presence in both compliance and voluntary markets.
Actors / Stakeholders: Corporations, NGOs, project verifiers, government agencies.
Related Terms: Carbon offset, carbon market, carbon neutral, additionality.
▼ Carbon cycleThe natural movement of carbon among the atmosphere, oceans, soil, and living organisms.
Description: The carbon cycle describes the natural circulation of carbon among the atmosphere, oceans, soil, plants, and animals. Human activity has disrupted this balance, primarily through fossil fuel combustion and deforestation, leading to increased atmospheric carbon and climate change.
Examples / Statistics: Each year, humans add about 36 billion tons of CO2 to the atmosphere. Natural sinks such as oceans and forests absorb about half, while the rest accumulates in the atmosphere.
Level of Implementation: Global concept; action needed at all levels to restore balance.
Actors / Stakeholders: Ecologists, climate scientists, environmental policymakers, educators.
Related Terms: Carbon sink, carbon sequestration, greenhouse effect, climate feedback loops.
▼ Carbon declarationA formal statement detailing the carbon emissions associated with a product or process.
Description: A carbon declaration is a formal statement by an organization or entity about its current and intended carbon emissions, reduction strategies, and targets. Declarations are often used for transparency, reporting, or signaling climate leadership.
Examples / Statistics: Thousands of companies have signed the Science-Based Targets initiative, which includes declaring carbon reduction goals in line with limiting global warming to 1.5C.
Level of Implementation: Mostly organizational; supported by national or global reporting frameworks.
Actors / Stakeholders: Corporations, municipalities, international agencies (e.g. UNFCCC).
Related Terms: Carbon footprint, ESG reporting, climate disclosure, net-zero commitment.
▼ Carbon diet, LowA lifestyle focused on minimizing personal or household carbon emissions.
Description: A carbon diet refers to reducing one's personal or organizational carbon footprint by making more sustainable lifestyle or operational choices. This includes changes in energy use, transportation, food consumption, and material use to lower carbon emissions on a daily basis.
Examples / Statistics: Switching to a v, etaian diet can reduce an individual's carbon footprint by up to 50%. Replacing a gasoline car with a public transport commute or electric vehicle can cut emissions by several tons per year.
Level of Implementation: Individual and local level; promoted nationally through awareness campaigns.
Actors / Stakeholders: Consumers, community groups, NGOs, sustainability advocates.
Related Terms: Carbon footprint, sustainable living, energy efficiency, eco-labeling.
▼ Carbon economy, LowAn economic model built on reducing fossil fuel use and embracing cleaner energy systems.
Description: A low-carbon economy is one where economic activities are structured to produce minimal greenhouse gas emissions. It involves a systemic shift in how energy is produced and used, how goods are made and transported, and how natural resources are managed.
Examples / Statistics: The UK reduced its carbon emissions by 44% between 1990 and 2019 while growing its GDP by 75%, indicating the p, ental for decoupling economic growth from emissions.
Level of Implementation: National and global, supported by international agreements like the Paris Accord.
Actors / Stakeholders: Governments, businesses, financial institutions, international bodies.
Related Terms: Green economy, decarbonization, circular economy, just transition.
▼ Carbon emissionsThe release of carbon, primarily as CO - , from human activities like transportation and industry.
Description: Carbon emissions refer to the release of carbon dioxide (CO2) into the atmosphere, mainly from burning fossil fuels such as coal, oil, and gas. These emissions are the primary driver of human-induced climate change, altering weather patterns and raising global temperatures.
Examples / Statistics: Global CO2 emissions reached approximately 36.8 billion tons in 2022. The top emitters are China, the United States, and India.
Level of Implementation: Tracked globally, reported nationally, and influenThe release of carbon, primarily as CO - , from human activities like transportation and industry.ced by local activities.
Actors / Stakeholders: Industries, transportation sectors, energy producers, policymakers.
Related Terms: Greenhouse gases, carbon footprint, fossil fuels, climate change.
▼ Carbon exchangeA platform where carbon credits or allowances are bought and sold.
Description: A carbon exchange is a formal marketplace where carbon credits or allowances are traded. These exchanges allow for transparent pricing and regulation of carbon as a commodity, enabling businesses to meet compliance obligations or voluntarily reduce emissions.
Examples / Statistics: The European Energy Exchange (EEX) and China's national carbon exchange are major platforms. The Chicago Climate Exchange was the first voluntary, legally binding carbon market in the U.S.
Level of Implementation: RegiA platform where carbon credits or allowances are bought and sold.onal and national, with some efforts toward global standardization.
Actors / Stakeholders: Governments, corporations, traders, environmental finance institutions.
Related Terms: Carbon market, carbon credits, emissions trading, carbon pricing.
▼ Carbon farmingAgricultural methods that increase carbon capture in soil and vegetation.
Description: Carbon farming is an agricultural approach that increases the amount of carbon captured in soil and vegetation. It includes practices such as cover cropping, no-till farming, rotational grazing, and agroforestry to improve soil health and store more carbon in biomass.
Examples / Statistics: Australia's Carbon Farming Initiative has generated millions of carbon credits through verified land-use practices. On average, well-managed grazing systems can sequester 1-3 metric tons of carbon per hectare annually.
Agricultural methods that increase carbon capture in soil and vegetation.Level of Implementation: Primarily local and national, with growing international recognition.
Actors / Stakeholders: Farmers, landowners, agricultural agencies, carbon certifiers.
Related Terms: Carbon sequestration, regenerative agriculture, land use change.
▼ Carbon fertilizationThe stimulation of plant growth due to increased atmospheric CO - levels.
Description: Carbon fertilization refers to the enhanced plant growth due to higher concentrations of CO2 in the atmosphere. While increased CO2 can stimulate photosynthesis, its long-term benefits are uncertain due to other limiting factors like water, nutrients, and heat stress.
Examples / Statistics: Some studies show that crop yields may increase by 10-20% under elevated CO2 levels. However, nutrient dilution and climate extremes may offset these gains.
Level of Implementation: Scientific concept with gloThe stimulation of plant growth due to increased atmospheric CO - levels.bal implications; monitored through research.
Actors / Stakeholders: Agricultural scientists, climate researchers, food security planners.
Related Terms: Climate adaptation, crop resilience, food security, CO2 enrichment.
▼ Carbon footprintThe total greenhouse gas emissions caused directly or indirectly by an individual or entity.
Description: A carbon footprint measures the total greenhouse gas emissions caused directly and indirectly by an individual, organization, event, or product. It is typically expressed in tons of CO2 equivalent and helps identify opportunities for emission reductions.
Examples / Statistics: The average global carbon footprint per person is around 4.7 tons CO2e/year. In the U.S., it is about 15 tons, while in India, it's approximately 2 tons.
Level of Implementation: Global to local; used widely for awareness aThe total greenhouse gas emissions caused directly or indirectly by an individual or entity.nd corporate reporting.
Actors / Stakeholders: Individuals, corporations, governments, environmental consultants.
Related Terms: Life cycle assessment, carbon audit, ecological footprint, GHG inventory.
▼ Carbon freeDescribes energy or products that are produced without emitting carbon.
Description: Carbon free refers to processes, products, or entities that do not emit carbon dioxide or other greenhouse gases during their operation or lifecycle. It implies that either no carbon is released at all, or any emissions are fully offset or mitigated through sustainable practices.
Examples / Statistics: Carbon-free electricity generation through sources like wind, solar, and hydropower is on the rise. For instance, in 2022, about 40% of electricity in the EU came from carbon-free sources.
Level of ImplementDescribes energy or products that are produced without emitting carbon.ation: National and local, often supported by regulations and incentives.
Actors / Stakeholders: Energy providers, green tech companies, local authorities, consumers.
Related Terms: Renewable energy, net-zero emissions, zero-carbon technologies.
▼ Carbon future, LowAn envisioned society with drastically reduced or zero carbon emissions.
Description: A low-carbon future envisions a global economy and society that significantly reduces its dependence on fossil fuels and transitions toward sustainable practices in all sectors. It aligns with global goals like the Paris Agreement to limit warming to 1.5C.
Examples / Statistics: According to the International Energy Agency (IEA), achieving net-zero by 2050 requires annual investments in clean energy to rise to USD 4 trillion by 2030.
Level of Implementation: Global vision, supported by national - An envisioned society with drastically reduced or zero carbon emissions. and sectoral strategies.
Actors / Stakeholders: Governments, international bodies, businesses, citizens.
Related Terms: Climate resilience, energy transition, decarbonization, sustainability goals.
▼ Carbon injectionThe process of pumping CO - into geological formations for storage or enhanced resource recovery.
Description: Carbon injection involves pumping carbon dioxide into underground rock formations for permanent storage, often as part of carbon capture and storage (CCS) systems. It is also used in enhanced oil recovery (EOR) to increase crude extraction efficiency.
Examples / Statistics: Projects like the Sleipner CCS in Norway have stored over 20 million tons of CO2. The U.S. leads in CO2-EOR, injecting around 68 million metric tons of CO2 annually.
Level of Implementation: Primarily national; requires geologThe process of pumping CO - into geological formations for storage or enhanced resource recovery.ical suitability and regulatory frameworks.
Actors / Stakeholders: Oil and gas companies, climate engineers, regulators, geologists.
Related Terms: Carbon capture and storage, geosequestration, CO2 utilization.
▼ Carbon intensityThe amount of carbon emitted per unit of economic output or energy produced.
Description: Carbon intensity measures the amount of carbon dioxide emitted per unit of economic activity or energy produced. It helps assess the carbon efficiency of economies, industries, or energy systems.
Examples / Statistics: The global average carbon intensity of energy in 2022 was about 50 kg CO2 per GJ. Countries like France have low carbon intensity due to nuclear and hydroelectric power use.
Level of Implementation: Global, national, and industry-level metric.
Actors / Stakeholders: The amount of carbon emitted per unit of economic output or energy produced. Governments, analysts, energy producers, carbon reporters.
Related Terms: Emissions intensity, energy efficiency, carbon benchmarking.
▼ Carbon marketA marketplace where carbon credits and offsets are traded to meet emission goals.
Description: A carbon market is a system that allows for buying and selling of carbon credits or allowances, placing a price on carbon emissions to incentivize reductions. It includes compliance markets and voluntary markets, each with different rules and participants.
Examples / Statistics: The global carbon market value exceeded USD 900 billion in 2023, driven largely by the EU Emissions Trading System (EU ETS) and China's national market.
Level of Implementation: Global, regional, and national.
Actors / Stakeholders: Emitters, traders, governments, environmental auditors, NGOs.
Related Terms: Carbon trading, carbon pricing, emissions cap, market-based instruments.
▼ Carbon neutralAchieving a balance between emitted carbon and carbon offset or removal activities.
Description: Carbon neutrality means balancing the amount of carbon emitted with an equivalent amount offset or sequestered, resulting in a net-zero carbon footprint. Organizations, events, or products can be certified as carbon neutral.
Examples / Statistics: Countries like Bhutan and businesses like Microsoft have declared themselves carbon neutral. Some cities, such as Copenhagen, aim for carbon neutrality by 2025.
Level of Implementation: Global to local, common in corporate and municipal sustainability pAchieving a balance between emitted carbon and carbon offset or removal activities.lans.
Actors / Stakeholders: Corporations, local governments, certifiers, consumers.
Related Terms: Net-zero, carbon offsets, greenhouse gas inventory, climate neutrality.
▼ Carbon offsetCompensating for emissions by funding projects that reduce or capture carbon elsewhere.
Description: A carbon offset is a reduction in emissions made to compensate for emissions elsewhere. Offsets are traded as credits, representing one ton of CO2-equivalent avoided or removed, and are used in both voluntary and compliance markets.
Examples / Statistics: Common offset projects include afforestation, renewable energy, and methane capture. In 2021, over 300 million tons of CO2 were offset globally through voluntary markets.
Level of Implementation: International, with national verification mechaniCompensating for emissions by funding projects that reduce or capture carbon elsewhere.sms.
Actors / Stakeholders: Offset project developers, certifying bodies, buyers (individuals, corporations).
Related Terms: Carbon credits, emissions trading, REDD+, climate finance.
▼ Carbon positiveGoing beyond neutrality by removing more carbon than is emitted.
Description: Carbon positive (or climate positive) goes beyond achieving carbon neutrality by removing more carbon from the atmosphere than is emitted. It reflects proactive efforts to create net environmental benefits.
Examples / Statistics: The carpet manufacturer Interface claims to have products that are carbon negative across their lifecycle. Some new buildings are designed to be carbon positive through energy surplus and offset programs.
Level of Implementation: Mainly organizational and product-level iGoing beyond neutrality by removing more carbon than is emitted.nitiatives.
Actors / Stakeholders: Innovative companies, green architects, sustainability leaders.
Related Terms: Net-zero, regenerative practices, climate leadership.
▼ Carbon sequestrationThe long-term capture and storage of atmospheric CO - in natural or artificial reservoirs.
Description: Carbon sequestration is the process of capturing and storing atmospheric CO2. It can be biological (e.g., in forests or soils) or geological (e.g., underground rock formations). It is essential for climate mitigation.
Examples / Statistics: Forests globally sequester about 2.6 billion tons of CO2 each year. Soil carbon sequestration practices could offset up to 5.5 billion tons of CO2 annually by 2050.
Level of Implementation: Global, national programs (e.g., REDD+), and local land-use changes. The long-term capture and storage of atmospheric CO - in natural or artificial reservoirs.
Actors / Stakeholders: Foresters, farmers, scientists, policy-makers, international agencies.
Related Terms: Carbon sink, CCS, land management, ecosystem services.
▼ Carbon sinkA natural system, like forests or oceans, that absorbs more carbon than it emits.
Description: A carbon sink is any system that absorbs more carbon than it emits. Natural sinks include forests, oceans, and soil, playing a crucial role in regulating atmospheric CO2 and mitigating climate change.
Examples / Statistics: Oceans absorb about 25% of global CO2 emissions annually. Tropical forests act as significant carbon sinks but are threatened by deforestation and degradation.
Level of Implementation: Global and national (especially in land-use and ocean policies).
Actors / StaA natural system, like forests or oceans, that absorbs more carbon than it emits.keholders: Conservation groups, land managers, governments, international bodies.
Related Terms: Carbon sequestration, ecosystem balance, afforestation, blue carbon.
▼ Carbon taxA financial charge on fossil fuels aimed at reducing carbon emissions.
Description: A carbon tax places a direct price on the carbon content of fossil fuels or emissions, encouraging polluters to reduce output. It is a simple economic instrument to internalize environmental costs and drive behavior change.
Examples / Statistics: Sweden has the highest carbon tax at around USD 130 per ton of CO2. Over 30 countries have implemented carbon taxes as part of their climate strategies.
Level of Implementation: National and regional, often part of fiscal or environmental policy.
A financial charge on fossil fuels aimed at reducing carbon emissions.Actors / Stakeholders: Governments, taxpayers, industries, environmental economists.
Related Terms: Carbon pricing, emissions tax, polluter-pays principle, green fiscal reform.
▼ Carbon tradingThe buying and selling of emission allowances or carbon credits in regulated markets.
Description: Carbon trading is a market-based approach to control pollution by providing economic incentives for reducing emissions. Entities with lower emissions can sell their excess allowances to those exceeding their limits.
Examples / Statistics: The EU ETS covers over 10,000 installations and about 40% of the EU's GHG emissions. In 2022, global emissions trading systems covered about 17% of global GHG emissions.
Level of Implementation: Global, regional (EU, China, California), and national.
Actors / Stakeholders: Governments, regulated industries, market intermediaries, carbon auditors. Related Terms: Cap-and-trade, carbon credits, emissions allowances, market A system that stores or trades carbon credits to manage emissions more effectively.
Putting it all together
The GET Matrix provides a structured framework to analyze the diverse landscape of carbon management by categorizing actions and concepts across three domains - Governance, Education, and Technology - and their application across Global, National, and Local levels. This multidimensional view helps policymakers, educators, businesses, and communities identify entry points for engagement and alignment in the transition toward a low-carbon future.
Figure 2: Carbon Governance Framework
Table 1: GET Matrix Categorization of Carbon Terms
GET Matrix Cell Carbon Terms Notes Governance - Global Carbon market, Carbon credits, Carbon trading, Carbon tax, Carbon declaration Instruments primarily driven by international frameworks like UNFCCC, Kyoto Protocol, and Paris Agreement. Governance - National Carbon cap-and-trade, Carbon tax, Carbon bank, Carbon declaration Country-level carbon governance tools and institutional mechanisms. Governance - Local Carbon neutral, Carbon positive, Carbon free Local government commitments and certifications (e.g., city-level carbon neutrality goals). Education - Global Carbon footprint, Carbon neutral, Low carbon diet Awareness and behavior change across global citizenship education, SDG education. Education - National Carbon intensity, Carbon footprint, Carbon declaration National campaigns and metrics (e.g., carbon calculators, curriculum integration). Education - Local Carbon diet, Carbon footprint, Carbon neutral Community-based learning and behavioral change programs. Technology - Global Carbon capture and storage (CCS), Carbon sequestration, Carbon sink, Carbon farming Technologies and processes emerging from international scientific and engineering communities. Technology - National Carbon capture and storage, Carbon injection, Carbon fertilization Deployment of advanced carbon technologies and geoengineering at industrial scale. Technology - Local Carbon farming, Carbon sink, Carbon cycle Local ecological interventions and natural climate solutions. Which way forward?
The interconnectedness of the 25 carbon-related concepts outlined in this collection reveals a diverse and evolving ecosystem of climate solutions. Each concept serves a particular function - whether as a scientific process, policy tool, behavioral model, or economic instrument - yet they all contribute to a shared goal: reducing atmospheric carbon to mitigate the impacts of climate change. Importantly, the framework is not siloed; the success of one concept often relies on the effective implementation of others, underscoring the need for integrated, cross-sectoral approaches.
Looking ahead, the global carbon discourse will likely become even more nuanced, requiring greater alignment between science, policy, finance, and everyday practice. As climate commitments deepen and technology evolves, so too must the language and systems we use to describe and manage carbon. This collection offers a foundational reference point for understanding the current state of carbon governance, while also inviting continued innovation and collaboration across disciplines and borders to ensure a sustainable carbon future.
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