Home About Us Team Words of Wisdom Why Renewable Energy? Industry Update Market Drivers TerraVerde News Green Glossary Blog Contact Us Afforestation — establishing forests by planting trees on bare land. Alternative Fuels — non-conventional fuels including methanol, coal derived liquid fuel, biomass, ethanol, bio-diesel and chemical based storage batteries. Baseline — establishment of a level of greenhouse gas emissions during a specific period, with a targeted objective of reduction at a future date. Biofuels — fuels derived from solid, liquid or gaseous materials, which are a by-product of ancient organic materials, including plants, or derived from industrial conversion of waste products and other materials. British Thermal Unit (BTU) — unit measurement of energy equal to amount of heat needed to raise the temperature of one pound of water, one degree Fahrenheit, at sea level.  In the U.S., BTU  describes the heat value of fuels, power, steam generation and THE strength of heating and cooling systems. One kilowatt-hour of electricity generates about 3,400 BTUs; one pound of air-dried wood, about 7,000 BTUs; a gallon of liquid propane, about 92,000 BTUs; a gallon of fuel-oil, about 140,000 BTUs; one barrel of gasoline, about 5.25 million BTUs; one ton of coal, about 20 million BTUs. California Climate Action Registry — a California based program under its Climate Action Reserve legislation, committed to solving Climate Change through emissions reduction and verification; enacted in 2001 to promote California businesses' early actions to manage and reduce greenhouse gas emissions; established the Climate Action Registry Reporting Tool (CARROT) as a database for emissions reports. The Registry, with 23 original participants, has grown to over 350 corporations, universities, cities and counties, government agencies and environmental organizations. California Global Warming Solutions Act (referred to as AB32) — landmark bill passed in 2006 that requires the California Air Resources Board (CARB) to develop regulations and market mechanisms to reduce the state's greenhouse gas emissions by 25 percent by 2020. Cap and Trade — market based approach to control pollution by allowing corporations and governments to trade emission allowances within a cap, or limit, on total emissions. Carbon Dioxide (CO2) — most common greenhouse gas; prior to the Industrial Revolution, the atmospheric concentration of CO2 was estimated at 280 parts per million (PPM); today, CO2 concentration is estimated to have increased to 380 PPM, due to burning of fossil fuels and changed global human living habits. Carbon Dioxide Equivalent (CO2e) — unit measuring global warming potential of greenhouse gases. Carbon Finance — funds made available for projects that reduce carbon or greenhouse gas emissions, based on the purchase of carbon assets related to emission reductions generated by the project. Carbon Footprint — the measure of the environmental impact of greenhouse gas emissions from operations by individuals, companies or organizations, expressed in units of carbon dioxide. Carbon Tax — a charge on fossil fuel based on carbon  emissions content. Certified Emission Reductions (CERs) — carbon credits under Kyoto Protocol achieved by operators subject to the European Union Emission Trading Scheme (EU ETS originating Clean Development Mechanism (CDM) projects); used by industrial operators to fulfill their obligations under Kyoto to surrender EU Allowances, CERs or Emission Reduction Units (ERUs), which allows their continued  annual CO2  emissions; can be purchased from original party that creates the CER or ERU or in a secondary market. Chicago Climate Exchange (CCX) — Chicago based voluntary GHG cap and trade exchange platform that limits trading to CCX members who contractually agree to the CCX's mandatory emissions reduction policy; trading is based on commodity type VER allowances. Clean Air Act (CAA) — Federal government ambient air quality emissions standards. Clean Development Mechanism (CDM) — provides credits created under Kyoto Protocol to industrialized countries to meet their internal emission reduction requirements by encouraging industrialized countries to provide financing for registered and approved projects in developing countries. Clean energy — energy from non-fossil fuels that reduces GHG emissions and improves sustainability; encompasses renewable energy, alternative energy, and green energy and power; use of clean tech to create energy from solar, wind, water energy, hydro electric, geothermal, bio energy, and geothermal power designed to reduce dependence on GHG and fossil fuels. Climate Change — the ongoing atmospheric increase in the concentration of CO2. The increased level of CO2 in the atmosphere contributes to polar ice caps  melting faster than in previous eras, sea levels  rising, and changing weather patterns, which combine to cause  water shortages and a greater  ferocity and frequency of hurricanes, typhoons and cyclones. Compliance Market — companies that participate in the purchase of RECs to meet mandatory renewable energy targets set by state governments. Cogeneration — use of thermal energy and electricity in sequential commercial production facilities. Ecosystem — complex ecological unit of interacting plant, animal, fungal, and microorganism communities and their associated non-living environment. Efficiency — measure of the percentage of power converted to energy  after loss of waste heat. Emission Offsets — emission reduction by existing sources, used to offset new emission reduction requirements. Emission Reduction Credits (ERCs) — credits achieved by an emitting source that voluntarily reduces its emissions beyond required levels of minimum pollution control; represents right to emit a regulated pollutant; may be sold as a financial instrument, leased, "banked" for future use, or traded; provides incentives to reduce emissions below required levels; promotes a market based ERC air pollution control mechanism. Emission Reduction Purchase Agreement (ERPA) — terms for purchase and sale of emission reduction credits (ERCs). Emission Reductions  — innovative and cost effective methods to create clean energy technologies and reduce emissions. Emission Reduction Units (ERUs) — unit of one metric ton of CO2e emission reduction under Kyoto Joint Implementation system. Energy Star — government-backed labeling program that rates evaluated factories, office equipment, electronic equipment, and appliances against strict energy efficiency standards. European Climate Exchange — trading platform created in Europe in 2005 by the CCX; the largest mandatory trading exchange of CO2 and other GHG contracts for the EU ETS. European Union Allowance (EUA) — distributed by the European Union as part of the Emission Trading Scheme (ETS) compliance program; measured as one ton of CO2. European Union Emissions Trading Scheme (EU ETS) — began in January 2005, the EU ETS is the largest multi-country, multi-sector greenhouse gas emission trading system; a major part of climate control; covering more than 10,000 installations collectively responsible for half of the EU's emissions of CO2   and 40% of its total GHGs. Large emitters monitor their CO2 emissions, and each year report to the government an emissions allowance equivalent. Installations receive free allowances from EU member states' governments, on plant-by-plant basis, based on emission reduction and limit requirements. Covered emitters may purchase EU allowances from others (installations, traders, governmental bodies) to meet allowances annually required to be provided to government; excess allowances can be sold. Feed-in-tariff (FITs) — an incentive structure by government entities to encourage the use of renewable energy by guaranteeing the sale to the grid of electricity generated from renewable sources, for long-term payments at pre-established rates; designed to ensure profitable returns.  FITs help to overcome the price disadvantage of renewable energy as compared with other energy sources and is phased out when the price level of renewable energy becomes cost effective to the utility. Many foreign governments including Germany and Spain, many U.S. and state governments, the Canadian Province of Ontario, and numerous municipalities have implemented a form of FITs; encourages utilities to purchase higher priced renewable energy. Geothermal Energy — energy derived from natural heat in rocks, hot water and steam. Gigawatt (GW) — unit of power equal to one billion watt hours, or one thousand megawatt hours; typically the power output equal to a nuclear power plant Global Warming — the result of human created emissions of GHG and natural changes of solar heat; indicated by the rise in both the temperature of the surface of the earth and the ocean. Greenhouse Effect — greenhouse gases and water vapor generating heat, causing warming of earth and lower atmosphere. Greenhouse Gases (GHGs) — gases including methane, carbon dioxide, nitrous oxide, hydroflourocarbons, perflourocarbons and sulfur hexafluoride that cause climate change and global warming. Green Trading — describes the convergence of the capital markets and environmental markets, including the trading of CO2 and other GHGs and related financial instruments. Green Wave —- "going green"; efforts by a groundswell of individual consumers and companies, with state, local, and federal governments to encourage and promote increased environmental responsibility, Grid — power distribution system for electric utilities. Grid Connection — electric power production facility connection to Grid. Hertz (Hz) — unit to measure rate of directional change of electrical flow in alternating current (AC); in cycles per second. Host Country — physical location of emissions reduction project. Joint Implementation (JI) — agreements among nations under the auspices of the United Nations Framework Convention on Climate Change to reduce greenhouse gas emissions and create CDMs among industrialized and developing countries. Kilowatt (kW) — unit of electric power equal to 1,000 watts (1 kW equals 3,413 BTU's, per hour) and a megawatt (MW) is one million watts. One megawatt is enough electricity to supply 1,000 homes; 1,000 megawatts will power one million average homes. A 10 kW wind turbine can generate about 10,000 kWh annually at a site with wind speeds averaging 12 miles per hour, and power a typical household for the year (the average U.S. household consumes about 10,000 kWh of electricity per year).  A 5 MW turbine (current production size) can produce more than 15 million kWh in a year, which can power 1,400 to 1,500 households Kilowatt-Hour( kWh)  — unit of energy equal to use of 1 kilowatt per hour. . Kyoto Protocol — adopted by 184 countries since December 1997 as system to reduce worldwide emissions of greenhouse gases by 5.4% below the 1990 levels, to be achieved by 2012; created three mechanisms for international compliance markets-- ETU, JI's, and CDMs. Megawatt (MW) — unit of power equivalent to 1 million watts or 1000 kilowatts. Large coal fired plants generally produce 2,000 to 4,000 MW of power, typically sufficient power for 20,000 to 40,000 homes. Methane — flammable, colorless and odorless gas that is the primary part of natural gas. Midwestern Greenhouse Gas Reduction Accord — cooperative effort by 9 states and Manitoba to reduce GHGs. Ozone Layer — shields the Earth from harmful ultraviolet radiation from the sun. Particulate matter — mass of aerosol, dust, fumes, mist, smoke or spray found in solid or liquid, dispersed by gas or liquid emissions. Sources can be natural or man made; in water, particulates can either be in a solid or dissolved state. Photovoltaic (PV) — material that generates small electrical voltage when illuminated with natural light (sunshine); connected multiple PV cells produce electrical current; establishes a system to convert sunlight to electricity. PV Module (Solar or PV Panel) — discrete, self-contained, electrical circuit of individual solar cells to produce a specific voltage and amperage of electricity when exposed to  sun light. Power Purchase Agreements (PPAs) — agreement between electricity producers in which one party sells generating capacity or production to another; substitutes for building a new power plant. State regulators review costs recovery rate requests and amounts passed on to the utility's consumer and industrial customers. Regional Greenhouse Gas Emissions (RGGI) — mandatory, market based cap and trade program linking ten Northeast and Mid-Atlantic states from Maine to Maryland to reduce 25 MW power generation facilities' GHG emissions by 10% by 2018; phase in over a three year compliance period; quarterly auctions of allowances. Renewable Energy Source — naturally renewable and replenished energy sources including sun, wind, flowing water, biomass and geothermal energy. Reforestation — replanting harvested forests after removal for timber and lumber use. Renewable Portfolio Standards (RPS) — states' requirements that utilities derive a portion of annual electricity production from renewable sources. Utilities may meet RPS in 3 ways: build their own renewable sources, purchase renewable power from a direct power source, or purchase RECs from renewable energy providers. Renewable Energy Certificates (RECs) — tradable environmental certificates each with a unique identification number that represents 1 megawatt-hour (MWh) of electricity generated from a renewable source and delivered to a Grid. The renewable energy provider (e.g. wind farm) receives one REC for every 1,000 kWh or 1 MWh of electricity produced (an average residential customer consumes about 800 kWh in a month). RECs can be bought and sold in capital markets. Sequestration — carbon sequestration is the controlled disposal or storage by a biochemical process, causing atmospheric carbon to be absorbed by living organisms, including trees, soil organisms, and crops; the storage of carbon in soils, with reduction of atmospheric carbon dioxide levels by preventing release of carbon to the environment. Smart meter — electricity or gas meter to transmit and receive data between users and utility to enable minute-by-minute timely usage of data and  to monitor availability, consumption, cost and demand; contributes to efficient user and utility grid management and power distribution. Solar Panel — also referred to as Photovoltaic module or panel; an assembly of photovoltaic cells used as a system to produce electrical power capacity; electricity generated from light energy from the sun. Socially Responsible Investment — (SRI) — integrates socially-conscious and ethical and environmental criteria as an investment strategy, in the process of the analysis, selection and making of investment choices, to maximize both financial return and social good; favors corporate practices that promote moral and ethical criteria such as environmental stewardship, social justice, and corporate governance (ESG); consumer protection, human rights and diversity and   that avoid certain investments such as alcohol, tobacco, gambling, weapons and the military; began in the 1920s when churches divested their holdings of gambling, alcohol and tobacco stocks;  today, it has evolved into the major philosophy of  socially responsible investing which often reflects a specific religious view and is a more proactive investing approach  to foster and  support the environment, worker's rights, or other social issues. Stern Report — issued by Sir Nicholas Stern for the British government in 2006, which discusses the effect of global warming on the world economy; concludes, "the Review first examines the evidence on the economic impacts of climate change itself, and explores the economics of stabilising greenhouse gases in the atmosphere".  It suggests that 1% of global gross domestic product per year is required to be invested in carbon reduction to avoid the impact of Climate Change. Sulphur Dioxide (SO2) or (SOX) — produced by volcanoes and by various industrial processes; prevalent in all raw materials; SOX gases are formed when fuel-containing sulfur, such as coal and oil, is burned, and when gasoline is extracted from oil, or metals are extracted from ore dissolves in water vapor to form acid, and interacts with other gases and particles in the air to form sulfates and other products harmful to humans and the environment. Sustainability — meeting presnt day needs without compromising the ability of future generations to meet their own needs; returning human use of natural resources to within sustainable limits; efforts to create and maintain conditions under which humans and nature can coexist  by integrating economic, social and environmental requirements. Terawatt  (TW) — power equal to 1 trillion watts; total power used worldwide is estimated at over 16 TW. United Nations Framework Convention on Climate Change (UNFCCC) — UN Earth Summit framework for intergovernmental efforts that sets the framework to cooperate on limiting impact of Climate Change. Validation — independent review of project design to confirm CDM estimates. Voluntary Emissions Reductions (VER) — carbon offsets; permanent, third party verified carbon reduction of one metric ton (2,205 lbs) of carbon dioxide or its equivalent; a commodity sold to assist financing carbon reduction projects; (CDM projects produce CERs while offset credits in the voluntary market are VERs). Voluntary Market — participants are institutional, commercial, and industrial users who make "voluntary" purchases of allowances to support green initiatives designed to encourage environmental benefits linked to Climate Change and GHG emissions. Western Climate Initiative — joint effort to reduce GHG emissions by 6 states including California, New Mexico, Arizona, Oregon, Washington, Utah, and 4 Canadian provinces.