Carbon Accounting

The systematic process of measuring, reporting, and managing greenhouse gas emissions generated by individuals, organizations, or geographical areas.

Greenhouse Gases (GHGs)

Gases that trap heat in the atmosphere, contributing to the greenhouse effect and climate change. The most common GHGs include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), and fluorinated gases.

We usually differentiate between naturally occurring and anthropogenic (human cased) greenhouse gases.

Carbon dioxide equivalent (CO2e)

A standard unit for comparing the global warming potential of different GHGs. It expresses the amount of a GHG in terms of the amount of CO2 that would have the same warming impact over a specific time period.

Carbon footprint

The total amount of GHG emissions, expressed as CO2e, generated by an individual, organization, or product over a specified period.

Our Reegy Eco Hub can automate the process of calculating your carbon footprint for you!

Carbon offset

Compensation of GHG emissions created within an organization through investments such as renewable energy projects or reforestation. They are an important tool in your decarbonization strategy.

It is essential not to confuse carbon offsets with direct carbon reductions.

Carbon credit

A tradable unit representing one metric ton of CO2e reduced or removed from the atmosphere through emission reduction projects, such as renewable energy or afforestation.

Carbon market

A system where entities can buy and sell carbon credits to meet their emission reduction targets or to offset their emissions.

Carbon pricing

A policy mechanism that assigns a cost to GHG emissions, incentivizing the reduction of emissions. Common carbon pricing mechanisms include carbon taxes and cap-and-trade systems.

Carbon tax

A levy imposed on the carbon content of fuels, with the goal of reducing GHG emissions by making carbon-intensive activities more expensive.


An environmental policy mechanism that sets a limit or “cap” on the total amount of GHG emissions and allows entities to trade emission allowances, creating a market incentive for reducing emissions.

Scope 1

Direct GHG emissions from sources owned or controlled by an organization, such as fuel combustion in vehicles or during manufacturing processes. First defined by the Greenhouse Gas Protocol.

Scope 2

Indirect GHG emissions from the generation of purchased electricity, heat, or steam used by an organization. Investing in clean energy sources such as solar or hydropower can help reduce scope 2 emissions significantly.

Scope 3

All indirect GHG emissions in an organization’s value chain, such as emissions from the production of purchased goods, business travel, or waste disposal. Scope 3 emissions are separated into 15 different categories in carbon accounting.

Measuring and accounting for scope 3 emissions is tricky, which is why our platform helps you in identifying and measuring them.

Carbon sequestration

The capture and long-term storage of atmospheric CO2, typically through natural processes such as photosynthesis by plants or chemical reactions in geological formations.

This process is often used in carbon offsets like reforestation to offset GHG emissions elsewhere.

Life cycle assessment (LCA)

A systematic evaluation of the environmental impacts of a product, process, or service throughout its entire life cycle, from raw material extraction to end-of-life disposal or recycling.

Carbon capture and storage (CCS)

A technological process that captures CO2 emissions from industrial processes or power generation and stores them underground in geological formations to prevent their release into the atmosphere.

Carbon leakage

The phenomenon where emissions reduction in one country or region leads to an increase in emissions in another, typically due to the relocation of carbon-intensive industries.

Carbon neutrality

Achieving a balance between emitting GHGs and removing or offsetting them, resulting in no net increase in atmospheric GHG concentrations.

Carbon negative

A state in which an entity removes more GHGs from the atmosphere than it emits, leading to a net reduction in atmospheric GHG concentrations.

Climate risk

The potential impact of climate change on an organization’s operations, assets, or supply chain, which can be physical, regulatory, or market-related.

This climate risk affects us all which is why we build products that help you lower your carbon footprint and climate risk effectively!

Climate adaptation

The process of adjusting to current or expected climate change impacts in order to reduce vulnerability and increase resilience.

Emissions trading system (ETS)

A market-based approach to controlling GHG emissions by allowing entities to buy and sell emissions allowances or credits, with the aim of achieving a specified reduction target.

Emissions factor

A coefficient that represents the amount of GHGs emitted per unit of activity or input, such as the amount of CO2 emitted per kilowatt-hour of electricity produced from a specific fuel type.

Emission factors are widely used in spend-based carbon accounting and there are several databases with current and historic emission factors.

Emissions inventory

A comprehensive account of GHG emissions from a specified source or group of sources, often used to track progress toward emissions reduction targets.

Emissions reduction target

A goal to decrease greenhouse gas emissions by a specific amount or percentage within a certain timeframe, typically set by a government, organization, or international agreement.

The Science-Based Targets Initiative (SBTI) is a great way for companies to verify their climate goals.

Emissions intensity

(also carbon intensity) A measure of the amount of greenhouse gases emitted per unit of output, such as tons of CO2 per megawatt-hour of electricity generated. Often used as an indicator of the carbon efficiency of an energy system or economy.

Mandatory reporting

A requirement for certain entities, such as large emitters or companies in specific sectors, to report their GHG emissions to a regulatory authority.

Several regulations around the world exist and equally as many reporting frameworks.

Reegy helps you publish regulatory-grade carbon and energy reports without the hassle.

Voluntary reporting

The voluntary disclosure of GHG emissions information by organizations, often in response to stakeholder demands or to demonstrate corporate social responsibility.

Corporate social responsibility (CSR)

A business approach that considers the environmental, social, and governance (ESG) aspects of an organization’s activities and seeks to minimize negative impacts and maximize positive contributions to society.

Carbon budget

The cumulative amount of GHG emissions that can be emitted while limiting global temperature rise to a specific target, such as 1.5°C or 2°C above pre-industrial levels.

Carbon intensity

The amount of CO2 emitted per unit of energy output or economic activity, often used as an indicator of the carbon efficiency of an energy system or economy.

Carbon audit

A systematic examination of an organization’s activities to identify and quantify its GHG emissions, evaluate reduction opportunities, and develop a management plan to achieve emissions reduction targets.

Reegy’s Eco Hub can help you carry out an in-house carbon audit in no-time!

Net Zero

Achieving a balance between the amount of GHGs emitted into the atmosphere and the amount removed or offset through natural or technological processes, resulting in no net increase in atmospheric GHG concentrations.

Net Zero is our overall goal for our customers and the world.

Carbon accounting standards

Guidelines and methodologies for measuring, reporting, and verifying GHG emissions, such as the Greenhouse Gas Protocol or ISO 14064 series.

Renewable energy certificates (RECs)

Tradable certificates representing the environmental attributes of one megawatt-hour of electricity generated from renewable energy sources, which can be used by organizations to demonstrate their support for renewable energy and reduce their Scope 2 emissions.

Climate action plan

A comprehensive strategy outlining an organization’s or government’s commitment to reducing GHG emissions, adapting to climate change impacts, and transitioning to a low-carbon economy.

Low-carbon transition

The process of shifting from a high-carbon, fossil fuel-based economy to a low-carbon economy that relies on renewable energy sources, energy efficiency, and sustainable practices to reduce GHG emissions and mitigate climate change.

Carbon accounting software

Digital tools designed to help organizations collect, analyze, and report their GHG emissions data in accordance with carbon accounting standards and best practices.

There are numerous different carbon accounting software providers on the market. Reegy’s solution stands out by offering an end-to-end automated process that can be used to lower carbon emissions, water consumption, and land use. All while being super easy to use and without requiring any ESG knowledge or experience from you!

Carbon removal

The process of capturing and permanently storing atmospheric CO2, either through natural processes such as afforestation or technological solutions like direct air capture and storage (DACS).

Science-based targets (SBTs)

Emissions reduction targets that are aligned with the level of decarbonization required to keep global temperature rise below 2°C or 1.5°C above pre-industrial levels, as specified by the Paris Agreement. Make sure to read our guide on science-based targets in our learn center!

The Science-Based Targets Initiative helps you set verified and effective reduction targets.

Paris Agreement

An international treaty adopted in 2015 under the United Nations Framework Convention on Climate Change (UNFCCC), which aims to limit global temperature rise to well below 2°C above pre-industrial levels and pursue efforts to limit the temperature increase to 1.5°C.

Climate finance

The provision of funding, investments, and financial incentives to support climate change mitigation and adaptation projects, including the development of low-carbon technologies, renewable energy, and climate-resilient infrastructure.

Carbon border adjustment mechanism (CBAM)

A policy tool designed to prevent carbon leakage by imposing a carbon price on imported goods from countries with less stringent GHG emissions regulations, leveling the playing field for domestic industries that face higher carbon costs.

Clean Development Mechanism (CDM)

A market-based mechanism established under the Kyoto Protocol that allows industrialized countries to earn emissions reduction credits by investing in projects that reduce GHG emissions in developing countries.

Carbon sink

A natural or artificial reservoir that absorbs and stores CO2 from the atmosphere, such as forests, soils, or geological formations.

Carbon farming

Agricultural practices that enhance carbon sequestration in soils, such as conservation tillage, cover cropping, and agroforestry, while also improving soil health and productivity.

Carbon disclosure project (CDP)

A global non-profit organization that collects and analyzes self-reported GHG emissions data from companies, cities, and regions, promoting transparency and driving action on climate change.

Reegy allows you to easily and quickly create CDP-compliant carbon reports from your data!

Circular economy

An economic model that aims to minimize waste and make the most of resources by keeping materials and products in use for as long as possible, reducing the need for new resource extraction and lowering GHG emissions.

Greenhouse effect

The natural process by which greenhouse gases in the atmosphere trap heat radiated from the Earth’s surface, maintaining the planet’s temperature at a level suitable for life.

Due to anthropogenic (human-caused) greenhouse gases like carbon and methane that we release into the atmosphere, this greenhouse effect leads to global warming, climate change, and devastating effects on our environment.

Anthropogenic emissions:

Greenhouse gas emissions resulting from human activities, such as the burning of fossil fuels, deforestation, and industrial processes.

Global warming

The long-term increase in Earth’s average surface temperature, primarily caused by the accumulation of greenhouse gases in the atmosphere due to human activities.

Climate change

A long-term change in the Earth’s climate, including changes in temperature, precipitation, and wind patterns, largely driven by human-induced emissions of greenhouse gases.

Intergovernmental Panel on Climate Change (IPCC)

An international body established by the United Nations that assesses the scientific, technical, and socioeconomic aspects of climate change, providing policymakers with objective information to develop appropriate responses.

Radiative forcing

The difference between the incoming solar radiation absorbed by the Earth and the outgoing thermal radiation emitted back into space, which determines the Earth’s energy balance and influences global temperatures.

Global warming potential (GWP)

A measure of the heat-trapping ability of a greenhouse gas relative to that of carbon dioxide over a specified time period, typically 100 years.


The fraction of incoming solar radiation that is reflected back into space by a surface, such as ice, snow, or vegetation, which can influence the Earth’s energy balance and climate.

Ocean acidification

The decrease in ocean pH due to the absorption of excess atmospheric CO2, which leads to a reduction in the availability of carbonate ions needed by marine organisms to build shells and skeletons.

With Reegy you can invest in carbon removal projects for ocean mineralization.