Shortcut for “carbon dioxide and its equivalents”. CO2-eq is the metric used to compare emissions from various greenhouse gasses (GHG) on the basis of their global warming potential (GWP), by converting all gasses to the equivalent amount of carbon dioxide for a given global warming potential.

A market-based mechanism designed to reduce greenhouse gas emissions. Under this scheme, a cap is set on the total amount of emissions that can be released by covered entities, such as industries or power plants. Emission allowances are issued, each representing the right to emit a specific amount of greenhouse gasses. By creating a market for emission allowances, the ETS incentivizes emission reductions while providing flexibility for businesses to find the most cost-effective ways to comply with emissions targets.

A European Union legislative package aimed at reducing greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels, covering various sectors to achieve the European climate goals.