CARBON MARKET & HOT ISSUES

Carbon Neutral

It refers to a state where the net emissions, calculated by offsetting the amount of greenhouse gas absorption from the amount of greenhouse gases emitted, discharged, or leaked into the atmosphere, become zero.

Carbon Credit

Carbon credits are certificates issued through projects that reduce greenhouse gas emissions or contribute to removing carbon from the atmosphere. Each carbon credit represents the reduction of one metric ton of greenhouse gas.

Paris Agreement

The Paris Agreement, adopted at the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Paris, France, in December 2015, is an international climate change accord. The primary goal of the agreement is to limit the global average temperature increase to well below 2℃ above pre-industrial levels and to pursue efforts to limit the increase to 1.5℃. All participating countries are required to establish their own greenhouse gas reduction targets (Nationally Determined Contributions, NDCs).

RE100

RE100 stands for "Renewable Energy 100%," and it is a voluntary global campaign where companies commit to sourcing 100% of their electricity from renewable energy sources such as solar and wind power. This initiative was jointly launched in 2014 by the international non-profit organization The Climate Group and the Carbon Disclosure Project (CDP). Participating companies aim to achieve 100% renewable electricity by 2050 or earlier.

Voluntary Carbon Market(VCM)

The Voluntary Carbon Market (VCM) is a private-sector-led market where companies, institutions, and individuals voluntarily trade carbon credits equal to the amount of greenhouse gas emissions they have reduced or absorbed, independently of government regulations or legal obligations.

Compliance Carbon Market(CCM)

The Compliance Carbon Market (CCM) refers to a market operated by governments or international organizations to enforce greenhouse gas emission reductions based on legal obligations. In this market, companies or countries are allocated a certain amount of Emission Allowances to meet the reduction targets set by regulatory bodies, and these allowances can be traded in the market. Representative mechanisms include the Emissions Trading System (ETS) and the Carbon Tax.

ITMOs(Internationally Transferred Mitigation Outcomes)

ITMOs (Internationally Transferred Mitigation Outcomes) are institutional units defined in Article 6.2 of the Paris Agreement, allowing greenhouse gas emission reduction achievements made by one country to be internationally transferred to another. Essentially, an ITMO represents the reduction or removal of one tonne of CO2, enabling a country that finds it difficult to achieve its own Nationally Determined Contribution (NDC) to purchase and utilize mitigation outcomes from another country.

COP (Conference of the Parties)

The COP (Conference of the Parties) is a formal meeting where countries participating in the United Nations Framework Convention on Climate Change (UNFCCC) convene to discuss responses to climate change and review the implementation of the Convention. Since its first meeting (COP1) in Berlin, Germany, in 1995, it has been held annually, with government representatives from various countries discussing greenhouse gas reduction targets, climate finance, technology transfer, and adaptation strategies.