Abatement cost curve

See marginal abatement cost curve

Abatement potential

The amount of GHG reductions that could be technologically and economically feasible to achieve.

Activity Metrics

Data points that measure a company’s ability to use its resources efficiently.

Activity-Based Costing (ABC)

A method used to determine the entire cost of all activities needed to create a product.

Base of the Pyramid

In economics, refers to the nearly two-thirds of humanity (>4 billion people) living in poverty

Black-Scholes Model

A pricing model for financial instruments.

Blue economy

The sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystems. (World Bank)

Capital Market Efficiency

The degree to which market prices reflect all available, relevant information.

Circular economy

A model of production and consumption which maintains the use of materials and products for as long as possible by reuse, repair and recycling.

Circular inflow

In a circular system, either renewable inflows that are used at a rate in line with natural cycles of renewability or non-virgin inflows.

Circular outflow

In a circular system, outflows that are designed and treated in a manner that ensures products and materials have a full recovery potential and extend their economic lifetime after their technical lifetime, and are demonstrably recovered.

Climate economics

A branch of economics focused on the costs and benefits of climate change and its mitigation.

Climate Public Expenditure and Institutional Review (CPEIR)

A tool to analyse a country’s public expenditures and how they relate to Climate Change.

Demand- and supply-side measures

Policies and programmes for influencing the demand for goods and/or services and how this demand is met.

Demand-side integrity

The requirement that that carbon credits deliver the emissions reduction they claim to represent, and demand-side integrity, i.e. that the purchaser of the carbon credit is using it as part of a credible strategy in line with achieving the goals of achieving the Paris Agreement.

Discount rate

The rate of return used to discount future cash flows back to their present value.


A mathematical operation that aims to make monetary (or other) amounts comparable across time.

Doughnut Economics

An economic model that builds on the Planetary Boundaries model. It is not a set of policies but a way of thinking that brings about regenerative and distributive dynamics.


A concept in economics referring to a cost paid or a benefit received by a party that was not involved in the production of that cost or benefit.

Flow resource

A resource which is neither renewable nor non-renewable, and must be used where it occurs and replenishes itself.

1 2 3