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Glossary

Insights

Glossary

Clear definitions of the sustainability, climate, and ESG terms that matter most — from CBAM and CSRD to SBTi and PCAF. Written by Semtrio's advisory team.

Are there any terms you don't recognise?

Browse A-Z

C

Climate Resilience

Climate resilience is the capacity of an organisation, system or community to anticipate, absorb and recover from climate-related disruptions while continuing to function.

Climate Strategy

Climate Scenario Analysis

Climate scenario analysis is a structured process for testing how an organisation's strategy and financial position would perform under different plausible climate futures, including at least one scenario consistent with limiting warming to 1.5°C.

Regulation & Compliance

Climate Transition Finance

Climate transition finance is funding raised by carbon-intensive companies to finance their shift to a low-carbon business model, guided by ICMA's Climate Transition Finance Handbook.

Sustainable Finance

Climate Transition Plan

A climate transition plan is a time-bound, forward-looking action plan that sets out how an organisation will adjust its strategy, operations and business model to meet its greenhouse gas reduction targets and align with the transition to a low-carbon economy — typically consistent with limiting global warming to 1.5°C.

Climate Strategy

Co-benefits

Co-benefits are the additional social and environmental benefits a carbon project delivers beyond its core emissions reductions, such as biodiversity protection, jobs or clean water.

Carbon Markets

CO₂ Equivalent (CO₂e)

A carbon dioxide equivalent (CO₂e) is a standard unit that expresses the climate impact of any greenhouse gas as the amount of CO₂ that would cause the same warming, by multiplying each gas by its global warming potential.

Carbon Accounting

Complementary Allowance Price Mechanism

The Complementary Allowance Price Mechanism is a Türkiye ETS tool that, in 2026, provides a reference price for allowances by offering a fixed-price sale window (a sale at a pre-announced price). It helps establish a price signal while the market is still developing.

Regulation & Compliance

Compliance Carbon Market

A compliance carbon market is a regulated market in which capped entities must surrender allowances or credits to meet legally binding emissions limits, such as the EU Emissions Trading System.

Carbon Markets
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Have a question we haven't defined yet?

If you're working through a regulatory framework or sustainability challenge and need clarity on a specific term or concept — our team is here to help directly.