Glossary of Carbon Market Terms

ADDITIONALITY — The quantity of carbon offsets issued to an individual property enrolled in program based on the net annual increase in stored carbon (expressed in metric tons of CO2 equivalence) over and above the property’s initial baseline inventory.


AGGREGATION FEE — Fee charged by aggregator and deducted from each enrollee’s payment received from the sale of carbon offsets to help cover operating costs, data management, and computer modeling.


AGGREGATOR — A market-authorized trader that can sell carbon offsets.


CCX TRANSACTION FEE — Fee charged by CCX and deducted from each enrollee’s payment received from the sale of carbon offsets through the CCX Trading Platform.


CERTIFICATION — An evaluation provided by a nationally-recognized, natural resources-affiliated organization that confirms forests are managed sustainably on a long-term basis and not converted to other, competing uses.


CONSERVATION EASEMENT — A legally enforceable transfer of usage rights for the purposes of conserving land and prohibiting real estate development.


FOREST CARBON BASELINE — The quantity of carbon (expressed in metric tons CO2 equivalent) stored on an individual property at the time it has completed all requirements necessary for enrollment.


INVENTORY — Quantitative method used to estimate the actual volume, composition, and market value of standing timber.


LONG-TERM COMMITMENT — Evidence (e.g. conservation easement or forest certification) presented by all property owners enrolled in a carbon market program indicating their commitment to maintaining their property’s status as forested.


OFFSET ISSUANCE — CCX-eligible properties represented by an aggregator will be issued carbon offsets on the basis of tonnage realized during the years of the agreement.


PERIODIC CARBON QUANTIFICATION — The process used to calculate additionality/year on each property enrolled in its program.


POOLED PROJECTS — The total quantity of individual properties an aggregator represents.


VERIFIER — A technical expert approved by market or registry who verifies the amount of carbon offsets an aggregator calculates is present on an individual property.


WORKING FORESTS — Forested land harvested in accordance with an approved forest stewardship plan, forest certification, and a current forest inventory.