Definitions

Climate neutral

"Climate neutral," also known as "carbon neutrality" or "net-zero emissions," refers to the situation where an entity (company, organization) emits no more greenhouse gases (GHGs) into the atmosphere as they remove from the atmosphere. One way to achieve this is to make use of renewable energy sources. These are forms of energy that are naturally replenished and can be used without depleting their finite reserves.

Climate neutrality is seen as a crucial step in combating climate change because it helps to limit the increase in global temperatures by reducing the net emissions of greenhouse gases. Many countries, companies, and organizations have set ambitious goals to achieve climate neutrality by specific target years to align with global efforts to mitigate climate change and limit global warming to well below 2 degrees Celsius above pre-industrial levels, as outlined in international agreements like the Paris Agreement

Fossil energy

Fossil energy, also known as fossil fuels, refers to energy sources that are derived from the remains of ancient plants that lived millions of years ago. These organic materials have undergone geological processes, such as heat and pressure, over millions of years, transforming them into carbon-rich substances. The three primary types of fossil fuels are:

1. Coal: Coal is a black or brownish-black sedimentary rock that consists mainly of carbon, along with various other elements like hydrogen, sulfur, oxygen, and nitrogen. It is one of the most abundant fossil fuels and has been used for centuries as a source of heat and energy.

2. Oil (Petroleum): Petroleum is a liquid fossil fuel composed of hydrocarbons (molecules made up of hydrogen and carbon atoms). It is found underground and extracted through drilling. Petroleum is refined to produce various products, including gasoline, diesel fuel, and jet fuel.

3. Natural Gas: Natural gas is primarily composed of methane (CH4) and is often found in underground reservoirs alongside petroleum deposits. Because it has hardly any other molecules than C and H, it is a clean-burning fossil fuel, as long as a well controlled combustion process prevents the formation of gases like CO or NOx. Natural gas is used for heating, electricity generation, and as a fuel for vehicles.

The combustion of fossil fuels releases carbon dioxide (CO2) and other greenhouse gases into the atmosphere, which contribute to global warming and climate change.

EU-ETS

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The European Union Emission Trading Scheme (or EU-ETS) is a multi-national, greenhouse gas emissions trading scheme designed to limit and reduce greenhouse gas emissions, including carbon dioxide (CO2), from industries and organizations. The goal is to gradually reduce CO2 emissions by placing a price tag on carbon emission, creating economic incentives for industries to adopt cleaner technologies and practices. The different components are:

1. Emissions Allowances: Under an ETS, a government or regulatory authority establishes a cap on the total amount of CO2 emissions that are allowed within a specified period, often measured in tons of CO2. This cap is usually set to decrease over time, in order to reduce emissions gradually.

2. Allocation of Allowances: Emission allowances, representing the right to emit a specific amount of CO2, are distributed to companies or entities covered by the ETS. These entities are typically those engaged in industries that are significant sources of greenhouse gas emissions, such as power generation, manufacturing, and aviation.

3. Trading: Entities that emit less CO2 than their allocated allowances can sell their excess allowances to those that exceed their allotted emissions. This creates a market for emission allowances, where entities can buy and sell allowances to comply with their emission reduction obligations in an cost effective way.

4. Compliance and Penalties: Entities are required to surrender an equivalent number of allowances to cover their actual CO2 emissions. If they emit more CO2 than they have allowances for, they may face penalties or fines.

5. Emission Reductions: The ETS incentivizes companies to reduce their CO2 emissions over time. Entities that invest in cleaner technologies and reduce their emissions can potentially sell their surplus allowances at a profit.

CO2 emission

The CO2 emission presented in the scenario studies and in the simulation tool refer to the CO2 emission of a standalone greenhouse and according to the definition of EU ETS. This means that CO2 emissions from the public grid are associated with fossil fuel power plants and therefore do not contribute to the emission of the greenhouse. External CO2 used for CO2 fertilization and which is not produced on-company is treated in the same way, meaning that the related emission is associated to the supplying industries. Because the fixated CO2 by the crop is regarded as “Short-cycle CO2" and is released into the atmosphere relatively quickly after being captured, this is also not into account.

Public grid

Carbon dioxide (CO2) emissions from an electricity grid depend on various factors, including the energy sources used for power generation, the efficiency of the generation technologies, and the energy demand of the grid. The carbon intensity of electricity grids can vary widely between regions and countries, depending on their energy mix and policy choices.

The primary driver of CO2 emissions from an electricity grid is the mix of energy sources used for power generation. Grids that rely heavily on fossil fuels like coal and natural gas lead to higher CO2 emissions compared to grids that use a higher proportion of low-carbon or renewable energy sources.

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Nuclear power generates electricity with very low CO2 emissions. Grids that rely on nuclear energy can have relatively low emissions, although there are concerns related to nuclear waste and safety. Technologies like CCS can capture CO2 emissions from fossil fuel power plants and prevent them from entering the atmosphere. While currently not widely deployed, CCS has the potential to reduce emissions from fossil energy based power generation and other production processes.

The CO2 emissions associated with the public electricity grid can vary significantly depending on the specific mix of energy sources used for electricity generation in a particular region or country. The primary factors influencing CO2 emissions from the electricity grid include the types of power plants used, their fuel sources, and the level of renewable energy integration.
It is important to note that the CO2 emissions from the public electricity grid can change over time as energy sources evolve and the grid transitions to cleaner energy technologies. Many countries are actively working to reduce CO2 emissions from their electricity grids by increasing the share of renewable energy, implementing stricter emissions regulations, and promoting more efficient energy conversion processes.

The graph below shows the CO2 emission of the electric power sector in the European Union in 2022, by country (in grams of CO2 per kWh)