Glossary
Avoided Emissions
Additional GHG that would have been emitted in the fictitious and most credible scenario in which the Solution is not implemented. This calculation is done by comparing the GHG emissions of a scenario with the solution implemented to the GHG emissions of an alternative fictitious reference scenario without the solution (called baseline or reference scenario).
Baseline/reference scenario
When dealing with activities that deliver positive climate impacts, the baseline scenario describes a fictional situation corresponding to the business-as-usual world, where those activities would not have been implemented.
Claim
Number of tonnes of CO2e avoided and/or removed disclosed for a given year by a Contributing Entity. It is the result of a calculation of the positive climate impact of a Solution based on a methodology respecting the general principles stated in the present Protocol. It is subject to a verification by a third independent party. The claim’s status goes from “submitted” to “under verification” to either “verified” or “denied”. If and once verified, it enables the Contributing Entity to convert its avoided and/or removed emissions into Climate Dividends that can be distributed to shareholders.
Climate Dividend
Untradable and externally verified extra-financial information corresponding to a positive impact for the climate generated by a Solution that can solely be claimed by the equity shareholders of the company carrying out the Solution ****(also referred to as Contributing Entity).
The positive climate impact is measured by the avoided emissions and/or removed emissions and is expressed in tCO2e: One Climate Dividend corresponds to 1 tonne of carbon dioxide equivalent (tCO2e) avoided or 1 tCO2 removed.
Contributing Entity
Entity, most of the time a company, contributing to the development and/or implementation of a Solution. It is the Entity which applies for Climate Dividends.
Greenhouse Gases (GHG)
As recognised per the Intergovernmental Panel on Climate Change (IPCC) and as listed by the GHG Protocol here, the greenhouse gases considered are
carbon dioxide (CO2)
methane (CH4)
nitrous oxide (N2O)
hydrofluorocarbons (HFCs)
perfluorinated compounds
sulphur hexafluoride (SF6)
nitrogen trifluoride (NF3)
perfluorocarbons (PFCs)
fluorinated ethers (HFEs)
perfluoropolyethers (e.g., PFPEs)
chlorofluorocarbon (CFCs)
hydrochlorofluorocarbon (HCFCs)
All GHG are then converted into tons of CO2-equivalent (t CO2e) using the 100 years Global Warming Potentials values relative to CO2 (GWP) from the IPCC AR6.
Leakage
Carbon leakage refers to the indirect transfer of GHG emissions (from one country or company to another for example) rather than the absolute avoidance/removal of emissions. This is sometimes referred to as “burden shifting”.
Life Cycle Assessment (LCA)
Compilation and evaluation of the inputs, outputs and the potential environmental impacts of a product system throughout its life cycle.
Lifespan or lifetime (of a Solution)
The expected period of time during which the Solution (product or service) will be used by its intended user.
Methodology
Series of hypotheses and principles to evaluate the climate impact of a Solution. It can be generalist or specific to a sector or a type of product/ service.
Nature-based Solutions (NBS)
Nature-based Solutions (NBS) are defined by IUCN as “actions to protect, sustainably manage, and restore natural or modified ecosystems, that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits”.
Classic examples of Nature-based solutions are the activities of tree planting or preservation of ecosystems (mangroves for example).
Product Carbon Footprint (PCF)
A measure of the total greenhouse gas emissions generated by a product or service, from extraction of raw materials to end-of-life. It is based on a life cycle assessment (LCA) but focuses on the single issue of global warming. It is measured in carbon dioxide equivalent (CO2e).
Rebound Effect
An increased consumption that results from actions that increase efficiency and reduce consumer costs. It is also called Takeback Effect or Offsetting Behaviour. A simple illustration is the increased energy consumption compared to the expected energy consumption after implementing energy efficiency measures due to cost savings.
Removed emissions
CO2 that is removed from the atmosphere and stored in biologic or geologic pools. This includes for example biological sequestration (trapping carbon in biomass), mechanical sequestration (capturing emissions from the atmosphere and storing them underground) and mineral sequestration (trapping carbon in solid carbonate salts). Solutions that enable (their users) to remove CO2 from the atmosphere can be eligible for Climate Dividends.
Solution
A product or service that contributes to global carbon neutrality either by avoiding or removing emissions.
Solution Detailed Declaration (SDD)
Information concerning a Solution that a Contributing Entity provides to enter the issuance process of Climate Dividends. It covers:
More detailed information about the Contributing Entity
More detailed information about the Solution and its positive climate impact
PCF of the Solution
A description and justification of the baseline/reference scenario
A description of the methodology and its compliance with the Climate Dividends Protocol
It is subject to validation by a third independent party.
Validation
Process of evaluating the relevance and reasonableness of the assumptions, limitations and methods that support a statement of a Solution Detailed Declaration. The outcome of the validation is an approval or denial.
Validity period
Period after the approval of the SDD during which the Contributing Entity can submit Claims for Verification in order to issue Climate Dividends (without having to go through a methodology/SDD validation).
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