C change - what all the carbon terms mean

In the March edition of its monthly magazine, Royal Auto, RACV Insurance published a helpful list of definitions for commonly used terms about the environment and climate change.

Fire Flyer thanks RACV for the article and has reproduced the terms and definitions below. To visit RACV Insurance's home page, click here.

Carbon credit
A measure devised by the Kyoto Protocol to reduce world greenhouse gas emissions. One credit represents the elimination of a single tonne of carbon dioxide from the atmosphere which can then be sold, for example to emitters that exceed their emissions cap in a carbon trading scheme.

Carbon footprint
In simple terms, a measure of the greenhouse gas a person, organisation or entity emits or has caused to be emitted. It should incorporate direct emissions (e.g. emissions produced on-site) and indirect emissions (emissions that result from use or purchase of product such as airline travel.

Carbon neutral
A pledge to reduce net emissions to zero. Correctly done, this entails a detailed calculation of total emissions (“carbon footprint”), followed by implementation of an efficiency program to reduce as much energy use as possible (e.g. removing and/or substitution ‘energy-hungry’ sources, switching to green power, changing energy behaviour patterns). As a last resort, remaining residual emissions may be abated through an accredited carbon offset scheme.

Carbon offset
A unit of greenhouse gas (the equivalent of one tonne of carbon dioxide) that is saved, abated or sequestered and then sold to compensate for the same amount emitted elsewhere. To be considered credible, an offset must satisfy certain criteria. For more details, visit www.carbonoffsetguide.com.au

Carbon sequestration
Long-term storage of carbon or carbon dioxide in the forests, soils, ocean or even underground depleted oil or gas reservoirs or aquifers.

Carbon trading
Also known as Carbon Emissions Trading. It is a price placed on carbon emissions, but rather than a tax it works by a ‘cap’ being placed on the amount of emissions permitted by a participating organisation. Those that cannot meet their cap are forced to either buy credits (‘trade’) or reduce their emissions. Scheduled to start in Australia in 2010.

Carbon tax
An alternative to carbon emissions trading which, if introduced, would entail a tax on the consumption of carbon-based non-renewable fuels such as petrol. While an emissions trading model means the government sets the emission level to be achieved (by the ‘cap’), a carbon tax model means the government would add a tax for the volume of emissions generated.

Climate Change
A gradual change in the climate because of change in the earth’s atmosphere that may include an increase in global temperature (global warming) and changes to rainfall and wind intensities. Scientific evidence has shown humans have contributed to climate change largely by burning fossil fuels. Greenhouse gas is also emitted from agriculture and land clearing. As greenhouse gases accumulate in the atmosphere, less heat from the sun is able to be reflected. Hence, a ‘greenhouse’ effect is created, whereby heat is trapped and the earth’s temperature increases.