CARBON MARKET & HOT ISSUES

Tonne of carbon dioxide equivalent (tCO₂-eq.)

One tonne of carbon dioxide equivalent (tCO₂-eq.) refers to the amount of 1 tonne of carbon dioxide or an amount of other greenhouse gases whose impact on global warming is equivalent to that of 1 tonne of carbon dioxide. In other words, since each greenhouse gas has a different Global Warming Potential (GWP), tCO₂-eq. is the unit that converts the thermal effect of each gas absorbed and emitted in the atmosphere into a carbon dioxide equivalent.

CABM (Carbon Border Adjustment Mechanism)

CBAM is a system introduced by the EU that imposes additional costs (carbon tax) on imported products with high carbon emissions, proportional to the amount of carbon emitted during their production. The primary objective of this mechanism is to prevent carbon leakage and ensure fair competition between low-carbon companies within the EU and producers outside the EU. The system will be fully implemented from 2026. Initially, six sectors(steel, aluminum, cement, fertilizers, electricity, and hydrogen) are covered, with the scope expected to expand gradually.

Renewable energy

Renewable energy is "energy derived from natural processes that are replenished at a faster rate than they are consumed." Unlike fossil fuels—coal, oil, and natural gas—which take millions of years to form, renewable resources continue to regenerate naturally, allowing for sustainable use over time. These energy sources include solar, wind, hydropower, geothermal energy, and biomass, which are naturally renewed by environmental processes such as sunlight, wind movement, or the Earth’s internal heat.

GWP(Global Warming Potential)

GWP refers to a numerical value that quantifies the relative potential of a greenhouse gas in the atmosphere to contribute to global warming over a specified period, with carbon dioxide (CO₂) as the baseline. That is, GWP sets the warming effect of 1 kg of carbon dioxide to 1, and indicates how many times greater the warming effect of 1 kg of another greenhouse gas is compared to it. For instance, CH₄ has a GWP of approximately 28, N₂O about 310, and SF₆ about 23,900, meaning they have a proportionately stronger warming effect compared to carbon dioxide.