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ENCYCLOPEDIA

This section provides terminologies and concepts in an orderly manner, following the criterion of thematic presentation. It aims to consolidate itself as an objective, neutral and reliable source of information and educational content, based on the definition of expressions in vogue - widely used in the media -, in order to promote a global economy free of greenhouse gas emissions. greenhouse (GHG).

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Chemical Energy

Chemical energy is a form of potential energy associated with chemical bonds between atoms and molecules. It is released or absorbed during chemical reactions, resulting in transformations in the molecular structure and, consequently, the release of energy, which can manifest itself as electricity, light or heat. Common examples include energy stored in fuels, batteries, and biological processes such as photosynthesis.

Qualified Generation

Qualified electricity generation refers to the production of electricity carried out by companies or undertakings that are not traditional electricity concessionaires. These companies use renewable or non-renewable energy sources to generate electricity and inject it directly into the electrical system, generally selling the surplus to the energy distributor. It is a form of decentralized generation, where several private actors or institutions can participate in the electricity market. In this case, qualified generation is characterized by the independent production of electricity by consumer units, such as industries, businesses and rural properties, which also act as energy generators. The objective is to allow these units to produce their own electricity, reducing costs and contributing to the safety and efficiency of the electrical system.

Power Management with Automation

Energy Management with Automation is an advanced and efficient concept aimed at optimizing the consumption and control of energy resources in various sectors, such as residential, commercial, industrial and institutional. This approach seeks to improve energy efficiency, minimize waste and reduce environmental impacts related to the indiscriminate use of electricity. Through the application of automation technologies and intelligent systems, Energy Management with Automation enables the monitoring, analysis and precise control of devices and equipment that consume energy. Sensors, actuators and measuring devices are integrated into a central platform, allowing proactive and dynamic management of consumption.

Sistema de Compensação de Energia Elétrica (SCEE)

A system in which active energy is injected by a consumer unit with microgeneration or distributed mini-generation into the local distributor's grid, provided as a free loan and subsequently offset against active electricity consumption or accounted for as energy credits for participating consumer units within the system.

Dispatchable Sources

Hydroelectric power plants, including run-of-river plants with variable control feasibility of their energy generation, qualified cogeneration, biomass, biogas, and photovoltaic generation sources limited to a maximum installed capacity of 3 MW (three megawatts), with accumulators that have the capability to modulate energy generation through energy storage, representing at least 20% (twenty percent) of the monthly generation capacity of the generating unit, and can be dispatched through a local or remote controller.

Electric Power Surplus

The positive difference between the injected electrical energy and the consumed electrical energy by a consumer unit with microgeneration or distributed mini-generation owned by a consumer-generator, calculated per billing time unit in each cycle, except for cases of projects with multiple consumer units or shared generation, where the surplus of electrical energy may be the totality of the generated energy or the energy injected into the distribution grid by the generating unit, at the discretion of the consumer-generator holder of the consumer unit with microgeneration or distributed mini-generation.

Project with Multiple Consumer Units

A group of consumer units located on the same property or contiguous properties, without separation by public roads, overhead or underground passages, or third-party properties not part of the project, where the facilities for serving common areas, through which microgeneration or distributed mini-generation is connected, constitute a distinct consumer unit, with the use of electric power in an independent manner, under the responsibility of the condominium, the administration, or the owner of the project.

Electric Energy Credit

Surplus electric energy not compensated by a consumer unit participating in the SECS in the billing cycle in which it was generated, which will be recorded and allocated for use in subsequent billing cycles, or sold to the concessionaire or permittee connected to the consumer-generator center.

Consumer-Generator

Holder of a consumer unit with distributed microgeneration or distributed mini-generation.

Sectoral Fund of Energy Development (SFED)

The “Conta de Desenvolvimento Energético (CDE)” is a sectorial charge established by Brazilian Law nº 10.438, of April 26, 2002.

Consortium of Electrical Energy Consumers

Meeting of individuals and/or legal entities that consume electricity. Instituted for the generation of energy for own consumption, with service to all consumer units by the same distributor.

Remote Self-consumption

A modality characterized by consumer units owned by the same legal entity, including parent and subsidiary companies, or an individual who owns a consumer unit with microgeneration or mini-generation distributed, with all consumer units being supplied by the same distribution company.

Onsite Self-consumption

A modality of microgeneration or mini-generation distributed electrically at the load, participating in the Net Energy Metering (NEM) System, in which the surplus of electric energy generated by a consumer-generator's consumer unit, whether an individual or a legal entity, is compensated or credited to the same consumer unit.

Distributed Mini-generation

A renewable or qualified cogeneration power generating facility that does not qualify as distributed microgeneration and has an installed capacity, in alternating current, greater than 75 kW (seventy-five kilowatts), equal to or less than 5 MW (five megawatts) for dispatchable sources, and equal to or less than 3 MW (three megawatts) for non-dispatchable sources, according to ANEEL regulations, connected to the electric power distribution network through consumer unit installations.

Distributed Microgeneration

A power generating facility with an installed capacity, in alternating current, equal to or less than 75 kW (seventy-five kilowatts), which utilizes qualified cogeneration according to the regulations of the National Electric Energy Agency ANEEL, an acronym in Brazilian Portuguese), or renewable sources of electric energy, connected to the electric power distribution network through consumer unit installations.

Renewable and sustainable energies

They are energy sources based on inexhaustible and clean sources, such as solar, wind, hydroelectric, geothermal, gaseous biofuels (biogas and biomethane) and others. These energy sources are considered renewable because they renew themselves naturally over time, without depleting their reserves. In addition, they are considered sustainable because their production and use minimizes the negative environmental impact and promotes a more balanced and just society. “Sustainability” is the term used to refer to this approach. “Renewable Energy” is the term used to refer to energy sources. In view of this, the use of renewable and sustainable energies is essential, in view of the global challenges of climate change and scarcity of natural resources. Furthermore, “Energy Transition” is the term used to refer to the shift towards the use of renewable and sustainable energy sources. Therefore, the energy transition is a critical part of the global effort to achieve a cleaner, fairer and more sustainable future.

Forms of Energy Storage

Energy storage is the ability to store energy in a device, substance or system for later use. Renewable energy sources such as solar and wind are not intermittent but variable, which means that the amount of energy they produce can fluctuate according to climate and weather conditions. To make these energy sources more reliable and usable, energy storage systems are used to store the excess produced during periods of high production and low demand, and release it when demand is high and production is low, helping to stabilize the power grid. There are several energy storage technologies available such as Energy Storage System, supercapacitors, hydrogen and thermal storage systems.

SBTi

The Science-Based Targets Initiative (SBTi) is a global alliance of businesses, NGOs, and governments aimed at tangibly combating climate change. SBTi challenges companies to set ambitious goals aligned with scientific guidelines to contribute to the United Nations' Sustainable Development Goals (SDGs). The initiative also provides support for companies to assess and track the impact of their actions on climate and society, ensuring alignment with sustainability and global development targets.

Negative Emissions

Negative Emissions refers to actions to actively remove greenhouse gases (GHG), such as carbon dioxide, from the atmosphere to achieve a negative carbon emissions balance. This is done through carbon capture and storage techniques, tree planting and forest restoration, among other actions. The ultimate goal is to contribute to mitigating the effects of climate change and protecting the environment.

Climate Positive

“Climate Positive” is a concept that refers to actions that aim not only to neutralize, but also to reduce greenhouse gas emissions, resulting in a positive balance of climate impact. This is achieved through sustainable practices, investment in renewable energy sources, as well as projects aimed at capturing and storing carbon. The ultimate goal is to achieve a positive impact on the climate and contribute to mitigating the effects of climate change.

Carbon Negative

It is the concept of actions aimed at reducing the amount of greenhouse gases (GHG), such as carbon dioxide (CO2), in the atmosphere to exceed the amount emitted. This is achieved through emission mitigation and compensation practices, such as the implementation of renewable energy sources, tree planting and other activities that result in carbon sequestration. The ultimate goal is to create a negative carbon balance, bringing benefits to the environment and human health.

Zero Carbon

Zero Carbon is a concept that seeks to reduce greenhouse gas (GHG) emissions to zero in production and consumption processes. This approach is key to combating climate change, as GHG emissions are responsible for increasing global temperatures. The objective is to produce energy without emitting greenhouse gases and, thus, preserve the balance of the climate for future generations. Achieving Zero Carbon is a complex challenge, but essential to protecting the environment and ensuring a sustainable future.

Carbon Free

Carbon Free refers to the absence of greenhouse gas emissions, such as carbon dioxide (CO2), from energy production or other human activities. The production of energy without carbon emissions is achieved through the use of renewable energy matrices, such as solar, wind or hydroelectric.

Carbon Neutral

Carbon Neutral is a concept that refers to the neutralization of greenhouse gas emissions, such as carbon dioxide (CO2), produced by a company, individual or country. It can be achieved through actions that reduce direct and indirect emissions, as well as by investing in projects that promote carbon capture and storage. The ultimate goal is to balance the emissions produced with the offsetting actions, becoming a “carbon neutral” company or country.

Net-Zero Emissions

Net Zero's goal is based on the idea of balancing greenhouse gas emissions with their removal from the atmosphere through absorption actions, such as reuse and recycling, and applications of technologies and clean energy sources. In this way, it is possible to minimize the impact of global warming and preserve the environment for future generations.

Net-Zero Carbon Emissions

Net Zero Carbon Emissions is the concept of carbon neutrality, which refers to the goal of balancing greenhouse gas emissions with the amount of gases removed from the atmosphere. The main source of these emissions is carbon dioxide (CO2), released into the atmosphere through human activities such as burning fossil fuels and forest degradation. The goal of Net Zero Carbon Emissions is achieved through specific actions to reduce CO2 emissions and increase CO2 removal from the atmosphere, as well as carbon capture technologies and reforestation projects. Implementing these measures is crucial to preventing global warming and its negative effects on the environment, economy and human health.

Net Zero

Net Zero refers to the balance between greenhouse gas emissions produced by a company, country or individual and compensation and mitigation actions, so that, at the end of a given period, GHG emissions are equal to zero.

Extreme Weather Events

Extreme Weather Events (ECEs) are exceptionally intense weather disasters that occur suddenly and significantly impact society, the environment and the economy. They are characterized by extreme weather conditions such as high temperatures, heavy rainfall, hurricanes, floods, droughts and forest fires. These events create significant challenges for the management of natural resources, the implementation of environmental policies and the protection of human health, as well as the economy, culture and ecosystems.

Global warming

Global Warming is a phenomenon that refers to the increase in the Earth's average temperature. It is mainly caused by the emission of greenhouse gases such as carbon dioxide released by human activity such as the burning of fossil fuels. Global warming has severe impacts on the environment, such as melting glaciers, rising sea levels, extreme climate change and species extinction. It is important that nations work together to implement solutions that reduce greenhouse gas emissions and protect our planet. Individual actions, such as reducing energy consumption and adopting renewable energy sources, are also crucial to combating global warming.

Global Warming

Climate Change is permanent and significant changes in the composition of the Earth's atmosphere, temperature and climatic conditions. They are caused by human action, such as the emission of greenhouse gases, and by natural processes, such as solar activity. These changes can lead to a rise in global temperature and sea levels, as well as changes in weather patterns, including rainfall, droughts and storms. Consequences of these changes include impacts on biodiversity, human health, water resources, agriculture and the economy.

Climate Change

Climate change is changes in temperature, chemical composition of the atmosphere and precipitation regime, caused by global warming. This is the result of the emission of greenhouse gases, resulting from human activities such as burning fossil fuels and deforestation. Global warming raises the temperature of the planet, directly impacting health, agriculture, biodiversity, water resources, economy and global security. Climate change is considered permanent and the need for action to combat it is urgent.

Decarbonization

Decarbonization is the process of reducing greenhouse gas (GHG) emissions and other polluting gases into the atmosphere. It is based on the use of clean and renewable energy matrices for the generation of electricity, which include sources such as solar, wind, hydroelectric (including tidal power) and biofuels. Decarbonization aims to replace the use of fossil fuels, such as coal, oil and natural gas, with renewable and clean fuels in the generation of electricity, in order to supply the production chain in a sustainable way. This is an important measure to preserve the environment and ensure cleaner, renewable energy for future generations.

Clean and Renewable Energy Sources

The Clean and Renewable Energy Matrix is made up of electrical energy sources generated from renewable natural resources, such as solar, wind, hydroelectric and bioenergy. These energy sources are clean and do not harm the environment, contributing to the reduction of greenhouse gas (GHG) emissions in the Earth's atmosphere. In addition, they are inexhaustible and renewable, ensuring a source of energy for future generations. Thus, the transition to a clean and renewable energy matrix is fundamental for the protection of the environment and for the sustainable development of society.

Clean and Renewable Sources

Clean and renewable sources are generated from inexhaustible natural resources, such as solar, wind, hydropower, geothermal, bioenergy, and wave energy. These sources are considered clean as they do not release toxic residues into the atmosphere and do not harm the environment. Additionally, generating energy from renewable sources contributes to the reduction of greenhouse gas emissions, making it a viable alternative for a more sustainable and healthier future for the planet.

Certified Renewable Energy

Certified Renewable Energy is the guarantee that the electricity sold comes from renewable and clean sources, such as solar, wind, hydroelectric, biomass and others. This guarantee is provided through the use of financial instruments, such as RECs (Renewable Energy Certificates) or I-RECs (Internationally-Recognized Renewable Energy Certificates). RECs and I-RECs certificates are issued by renewable energy generators and allow companies and end consumers to prove their commitment to clean and renewable energy sources. Purchasing these certificates helps boost the renewable energy market and contributes to meeting sustainable development goals.

Energy Transition

The energy transition is the process of changing the energy mix of countries, aiming to adopt renewable energy sources as a replacement for current polluting energy sources based on fossil fuels such as coal, oil, and natural gas. Sustainable Development Goal 7 of the United Nations sets the target for ensuring access to affordable, clean, and sustainable energy for all by 2030, requiring accelerated implementation of renewable energy sources in all UN member countries.

Individual GHG Compensation

The Individual GHG Compensation is a voluntary action to combat climate change by reducing GHG emissions. This can be achieved through sustainable consumption practices, such as the use of renewable energy sources, or offsetting individual emissions with the purchase of carbon credits. Activities such as planting trees, using non-polluting transport, being conscientious in the use of natural resources, among others, are also considered individual GHG compensation. Tools such as GHG emissions calculators help people understand their carbon footprint and offset their emissions. Thus, individual GHG compensation is an easy and effective way to contribute to a more sustainable future.

GHG Emission Mitigation Plan

The Greenhouse Gas Emissions (GHG) Mitigation Plan is a strategy to achieve the reduction of GHG emissions and to monitor the effectiveness of the implemented measures. It includes clear targets and metrics to measure the success of emission reduction actions and can be based on energy efficiency programs, renewable sources, sustainable agricultural practices and green technologies. Ongoing assessment and periodic adjustments are required to ensure mitigation effectiveness. The implementation of GHG emission mitigation plans is important for combating climate change and for the Earth's sustainable future.

GHG Emission Reduction

Reducing Greenhouse Gas (GHG) Emissions is a fundamental strategy to combat climate change. It consists of systematically reducing production or means of consumption that generate greenhouse gas emissions, such as carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). This reduction is part of the Nationally Determined Contribution (NDC), established after the Paris Agreement of the United Nations (UN), a mandatory target for all member countries. The reduction of GHG emissions involves the implementation of effective measures to reduce emissions, such as energy efficiency, the use of renewable energy sources, the implementation of sustainable agricultural practices and the implementation of green technologies. Furthermore, reducing GHG emissions is a global issue that requires international cooperation and participation from all sectors, including governments, businesses and civil society.

GHG Emissions Inventory

The Greenhouse Gas (GHG) Emissions Inventory is an important tool for measuring the amount of greenhouse gases produced by an organization, industrial processes, governments, or economic sectors, enabling the identification of the primary sources of GHG emissions and provides valuable insights for the deployment of mitigation and reduction strategies for these gases. GHG emissions inventories are produced periodically and are fundamental for monitoring and evaluating mitigation actions and environmental preservation efforts, while playing a crucial role in the fight against climate change.

Greenhouse Gas (GHG) Emissions Measurement

Measuring Greenhouse Gas (GHG) Emissions is a critical aspect of environmental assessment and management. It is a quantitative process that allows the quantification of polluting gas emissions associated with human activities, such as energy production, transport, industries, etc. It is a vital tool for strategic planning to reduce GHG emissions and to achieve global sustainability goals. The methodology for measuring GHG emissions is based on reliable data sources and rigorous technical standards, including the guidelines established by the GHG Protocol. The result is an accurate and consistent estimate of GHG emissions, which provides valuable information for decision-making and the implementation of emission reduction measures.

GHG or Greenhouse Gases (GHG)

Greenhouse Gases (GHG) are gases that contribute to the greenhouse effect and increase in global temperature. These gases are released into the atmosphere through human activities such as burning fossil fuels, agriculture and industrialization. The main greenhouse gases are carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O) and fluorinated gases such as hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and sulfur trifluoride. nitrogen (NF3). The amount of these gases in the atmosphere has increased significantly, causing dangerous climate changes for human life and nature. It is important to take steps to reduce emissions of these gases and preserve the planet for future generations.

Scope 3

Scope 3 is a concept used in the accounting of indirect greenhouse gas (GHG) emissions, that is, it covers those caused by activities that are the result of the company's activities, but that occur outside its sphere of direct control. It is a broad category and includes emissions related to the life cycles of products and services, the supply chain and activities related to the final use of the goods produced by the company. Scope 3 is important because it can account for the majority of a company's total emissions, and is therefore a key area for decarbonization actions. For companies that adhere to the Greenhouse Gas Protocol (GHG Protocol), the so-called Scope 3 is not a mandatory item.

Scope 2

Scope 2 is a concept related to the greenhouse gas (GHG) emissions inventory that covers indirect emissions resulting from the generation of energy purchased by the organization. It is important for companies to carry out a control of their scopes 1 and 2 so that they can understand the origin of their GHG emissions and seek mitigation and reduction strategies. This control is fundamental for transparency, responsibility and the implementation of sustainable actions. For companies that adhere to the Greenhouse Gas Protocol (GHG Protocol), the so-called Scope 2 is a mandatory item.

Escopo 1

Scope 1 of the GHG Protocol is a concept used in accounting for greenhouse gas emissions. Refers to direct emissions, that is, those generated directly by the company's activity, such as the consumption of fossil fuels in its facilities. Scope 1 is considered the most basic level of emissions accounting. It is important to establish a baseline for future mitigation actions and to monitor the company's energy efficiency. Therefore, for companies that adhere to the Greenhouse Gas Protocol (GHG Protocol), the so-called Scope 1 is a mandatory item.

GHG Protocol

GHG Protocol is a global protocol for the calculation and management of greenhouse gas emissions. It is an internationally accepted standard for measuring and reporting corporate greenhouse gas emissions, including carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). It is maintained by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). The GHG Protocol is widely used by companies, governments and organizations to measure and reduce their emissions, as well as to disseminate relevant information about their climate-related activities.

Gas REC

GAS RECs are renewable energy certificates for natural gas. They provide a form of proof that the natural gas consumed was generated from renewable sources, such as, for example, biomethane. These certificates can be purchased by companies to increase their percentage of renewable energy use and thus improve their ecological footprint, in addition to being issued and traded in specific markets, such as the European market.

IRECs and RECS

The Renewable Energy Certificates (RECs) are certificates that prove the generation of electricity from renewable sources. They are issued by government agencies or independent entities and serve as a mechanism to encourage the use of renewable energy sources. Each REC represents 1 MWh of energy generated from these sources. The I-REC (International Renewable Energy Certificate) is the international equivalent of the REC, with the same function of encouraging the generation of renewable energy, but applicable at an international level. Both can be traded on the market as financial assets.

Sustainability Credit Unit (SCU)

The Sustainability Credit Unit (UCS) is a tool used to encourage decarbonization actions and promote a more sustainable economy. This unit is awarded to companies that implement projects and practices to reduce greenhouse gas (GHG) emissions, and can be traded on the financial market to encourage the adoption of more sustainable practices. The UCS are verified and certified by independent organizations, guaranteeing the transparency and effectiveness of the compensation programs. In this way, the Sustainability Credit Unit is a key player in the global effort to achieve the goals established by the Paris Agreement on climate change.

CBIOS

The CBIOS, or Biofuel Decarbonization Credit, is a way to encourage the reduction of greenhouse gas emissions through the use of more sustainable biofuels. Each CBIOS represents a ton of CO₂ removed from the atmosphere, which means a positive impact on the environment. Companies and countries that adopt more sustainable practices in their energy production are rewarded with CBIOS, traded in the asset market, making investment in cleaner and greener solutions even more attractive.

Carbon Credits

Carbon credits are generated when a company, organization or individual performs an activity that reduces greenhouse gas emissions into the atmosphere. These activities may include implementing cleaner technologies, using renewable energy sources or carrying out conservation practices. Each carbon credit corresponds to a ton of carbon dioxide that is no longer emitted into the atmosphere. These credits can be bought and sold as a way to offset greenhouse gas (GHG) emissions from other activities. Companies and countries that buy carbon credits are funding projects and initiatives that help reduce GHG emissions. Through this transaction, they are offsetting GHG emissions that cannot yet be avoided. The carbon credits market is regulated by international and national bodies and has several methodologies to certify and validate projects that generate carbon credits.

Climate and Socio-Environmental Sustainability Assets

The Climate and Socio-Environmental Sustainability Assets are financial investments that aim to promote sustainable and responsible practices in terms of the environment and society. They are directly related to the economic performance of a company or country and seek to encourage decarbonization and social responsibility actions. The assets were created based on the Kyoto Protocol, in 1997, which established targets for the reduction of greenhouse gas emissions, thus giving them financial value and importance in the negotiation. Such assets are an efficient way to promote conscious investment practices and a more sustainable future.

Carbon Footprint or Carbon FootPrint

The Carbon Footprint, also known as the Carbon Footprint, is a measure of the total amount of carbon dioxide and other greenhouse gases emitted directly or indirectly by a person, company or nation. It includes greenhouse gas emissions resulting from activities such as burning fossil fuels for energy production, transport, production of food and other goods, as well as land use change. The carbon footprint is an important method of assessing the environmental impact of activities and identifying areas for improvement. It allows companies, governments and individuals to monitor and reduce their greenhouse gas emissions, contributing to the fight against global warming. In addition, the carbon footprint is also used as an indicator to assess the performance of companies and investments in terms of sustainability.

Global Reporting Initiative (GRI)

The Global Reporting Initiative (GRI) is an international organization founded by the United Nations Environment Programme. It is a nonprofit international organization that provides sustainability reporting guidelines and standards for businesses. The GRI goal is to help companies measure and disclose their environmental, social, and governance (ESG) impacts. This information enables investors, employees, governments, and other stakeholders to understand the company's performance on sustainability issues and assess its impact on the environment and society. The GRI is recognized as a global leader in sustainability, and its guidelines are widely used by companies worldwide. Additionally, the GRI works to raise transparency, accountability, and corporate social responsibility, contributing to the development of a more sustainable economy.

Carbon Disclosure Program (CDP)

The Carbon Disclosure Project (CDP) is a not-for-profit organization that seeks to help companies manage their carbon emissions. CDP works with investors, companies and governments to provide information on greenhouse gas emissions and help companies assess and manage their emissions. The organization also provides information on the actions companies are taking to address climate change. CDP engages companies around the world and is one of the leading sources of information on the carbon emissions of global companies. In addition, the CDP is an important tool to help companies assess their carbon footprint and implement strategies to reduce their emissions. By providing information and guidance to companies, CDP is helping to build a more sustainable economy and tackle climate change.

Dow Jones Sustainability Index (DJSI)

The Dow Jones Sustainability Index (DJSI) is a financial tool that assesses the performance of companies on issues related to sustainability. It is prepared by S&P Dow Jones Indices and RobecoSAM, and seeks to provide information to investors on the performance of companies in Environmental, Social and Governance (ESG) issues. The DJSI takes into account economic, social and environmental performance indicators, based on this information, it classifies companies into different levels of sustainable performance. It is a way of encouraging companies to adopt more responsible practices and allowing investors to assess the impact of their financial investments on sustainable development. The DJSI is a global reference for responsible investments, recognized as one of the most respected indices for assessing the sustainable performance of companies.

Carbon Efficient Index (ICO2 B3)

The Carbon Efficient Index (ICO2 B3) is a financial tool prepared by the São Paulo Stock Exchange (B3) whose objective is to evaluate the performance of companies in matters related to carbon emissions. It selects the companies with the lowest greenhouse gas emissions and includes them in an index, allowing investors to apply their resources to those with a lighter carbon footprint. In addition, the ICO2 B3 aims to encourage companies to adopt more efficient practices in terms of energy use and the reduction of greenhouse gas emissions. The ICO2 B3 is based on rigorous selection criteria, which consider the companies' carbon emissions history and their performance in relation to sustainability policies and targets. As such, it is an important tool for investors interested in making more responsible financial choices and for companies that wish to improve their image in order to improve their environmental performance.

Sustainability Index (ISE B3)

The Sustainability Index (ISE B3) is a financial tool developed by B3, the São Paulo Stock Exchange, which evaluates the performance of companies in Environmental, Social and Governance (ESG) issues. It seeks to provide information to investors on the performance of companies in issues related to sustainability and classifies them in different levels of sustainable performance, considering indicators of economic, social and environmental performance. In addition, the ISE B3 is a way to encourage companies to adopt more responsible practices in relation to the environment and society, and to allow investors to assess the impact of their financial investments on sustainable development. These indices are traded on B3 and add financial value to corporate sustainability actions. In summary, the Sustainability Index (ISE B3) is an important tool for conscious investment.

Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) or Corporate Social Responsibility (CSR) represents the concern of companies with the social and environmental impact of their activities. It is a way for companies to act ethically and responsibly, in addition to promoting the development of their community and the preservation of the environment. It involves actions such as investment in social projects, preservation of natural resources, promotion of dignified working conditions and the fight against corruption, beneficial both for the company's image and for building healthier relationships with all stakeholders. It is a business model in which companies integrate social development projects into their business operations, to simultaneously meet the expectations of both shareholders and stakeholders and their audiences – internal or external. It is important to highlight that CSR is not the same thing as philanthropy, as it deals with continuous actions that are integrated into the corporate management policy, and not sporadic or occasional practices such as charity actions.

ESG

ESG (Environmental, Social and Governance) is a set of administrative practices that aim to balance the objective of financial profit of companies with responsible social, environmental and ethical actions. The ESG Agenda includes goals and objectives for reducing the environmental impacts of the production of goods and services, economic decarbonization actions, protecting ecosystems, preserving water sources, decent working conditions, transparency in business management, combating corruption and money laundering . The effective implementation of ESG practices values dialogue and the active participation of all interested parties – the Stakeholders – in building a more sustainable future, promoting human development, society's well-being and preserving the environment. The ESG Agenda is the plan of goals that mainly encompasses: – Reduction of environmental impacts in the process of producing goods and services; – Economic Decarbonization Actions, carbon footprint reduction, Net Zero and Carbon Negative; – Mitigation of Greenhouse Gas (GHG) emissions; – Preservation of ecosystems and springs; – Reduction in the impact on communities involved in the production chain; – Corporate policies on decent working conditions; – Transparency in business management, disclosure of data, actions to combat corruption and money laundering. ESG deals, above all, with the convergence of interests of all interested parties – the Stakeholders – in the entire process of world economic development.

5Rs

5R is a waste management approach aimed at minimizing the amount of waste generated and maximizing the recycling and reuse of materials. This approach is based on five main actions: Reduce, Reuse, Recycle, Reprocess and Remove. Reducing means trying to minimize the amount of waste generated, through changes in behavior or optimization of production processes. Reuse refers to items that have been previously used, avoiding disposal and the generation of new waste. Recycling focuses on transforming waste into new materials or products. Reprocessing focuses on transforming waste into raw materials to be used again in production processes. Finally, Remove implies the proper disposal of waste that cannot be recycled or reprocessed. Therefore, the implementation of 5R is an effective way to guarantee the environmentally correct management of waste and the promotion of sustainable development. In addition, the adoption of these practices can bring economic benefits, such as reducing costs with waste management and generating new business opportunities.

Reverse logistics

Regulation defined by law in Brazil, reverse logistics is part of the National Solid Waste Policy (PNRS). Reverse Logistics is a waste management and product disposal process at the end of its life cycle. The objective is to promote the reuse, recycling and responsible disposal of goods, reducing the environmental impact and maximizing the use of resources. It ranges from the selective collection and sorting of waste, to the reuse and recycling of materials. It is an important practice for sustainability and the preservation of natural resources. In addition, it contributes to the creation of new businesses and jobs in the area of waste management.

Circular Economy

The Circular Economy is a systemic approach to resource management, which seeks to ensure that the value of materials and energy is maintained while minimizing negative environmental impacts. It is an alternative to the linear economy, based on the “take, produce, consume and discard” model. The Circular Economy aims to transform the current economic system, through reuse, recycling and repair processes, in addition to the use of renewable energy sources. This approach encourages collaboration between companies, governments and society, aiming to guarantee the sustainability of resources and a more balanced future for all.

Green Economy

Green economy is an approach to economic development that seeks to balance the generation of wealth with the preservation of the environment and the responsible use of natural resources. It focuses on cost-effective practices that promote energy efficiency, the use of renewable energy sources and the reduction of greenhouse gas emissions. The green economy also encourages innovation and the development of more sustainable technologies, as well as changes in consumption and production patterns. It is an integrated approach that considers the environmental and social impact of all economic activities. Therefore, the green economy is seen as a solution to achieve sustainable development and combat global warming.

Low Carbon Economy

Decarbonization economy refers to the transition from an economy based on fossil energy sources to an economy based on renewable and cleaner sources. The aim is to reduce greenhouse gas emissions and minimize the negative impact of energy use on human health and the environment. Decarbonization is one of the main measures to combat global warming and promote a more sustainable future. The decarbonization economy includes actions such as energy efficiency, renewable energy production and adaptation to climate change. Also, the Low Carbon Economy promotes the expansion of consumption of goods and services associated with sustainable development and is mainly associated with encouraging the use of renewable energy and mitigating the use of fossil fuels in the industrial and/or agricultural production process.

Decarbonization Economy

Agreement between industrially developed countries, which involves the systematic reduction of greenhouse gas (GHG) emissions in the atmosphere, applied to the production of goods and services to achieve specific goals of global environmental sustainability. The Decarbonization Economy is also associated with practices that encourage greater absorption of carbon by agricultural territories or forest forests. Thus, it covers all processes in the production chain, whether agricultural, industrial or service provision.

Sustainable Development

The concept of Sustainable Development is based on the combination of three interdependent dimensions: economic, social and environmental. The goal of this approach is to maximize economic progress without harming the living conditions of current and future generations and without compromising the environmental balance. In order to achieve this goal, the UN has established 17 Sustainable Development Goals (SDGs), which aim to promote concrete and globally aligned actions to achieve this goal.

Environmental Sustainability

One of the three pillars of sustainability, Environmental is a fundamental dimension of the concept of sustainability, whose objective is to promote the preservation of natural resources, through practices of reuse and recycling of raw materials, with the aim of minimizing the negative impacts caused by industrial activity. This approach is based on the premise that economic production must be compatible with sustainable development, seeking to balance the environmental, social and economic dimensions, in order to ensure human survival and preserve conditions for future generations.

Sustainability

Sustainability is a holistic approach that seeks to balance economic development with the preservation of natural resources and the guarantee of lasting social well-being. It implies a more efficient and responsible use of natural resources, aiming at long-term sustainable socio-economic development. Sustainability is supported by three interdependent pillars: the environment, society and the economy, considered in an integrated manner in all business decisions and actions.

Intelligent Energy Networks or Smart Grid

These are advanced electrical networks that combine digital technology and artificial intelligence to improve efficiency, security and resilience in the generation, distribution and consumption of electrical energy. They allow bidirectional communication between consumers, distributors and energy generators, enabling a more intelligent management of energy demand. In addition, Smart Grids enable the integration of renewable energy sources, increase the security of the electrical system and automate power restoration after interruptions. Therefore, Smart Grids are modern solutions to ensure the efficiency and security of electricity supply.

Qualified Cogeneration

Qualified cogeneration is a specific type of qualified generation that involves the joint production of electrical energy and thermal energy (heat) from a single source of primary energy. In this case, the electrical energy production process is accompanied by the capture and use of the residual heat generated, which can be used for industrial, commercial or space heating purposes. Qualified cogeneration is highly efficient because it takes advantage of the residual heat that would be wasted in a conventional electric power generation, where only electricity is produced. It is often employed in industries, hospitals, hotels, commercial buildings and other facilities that have high demand for heat and electricity.

Energy Management

Energy Management is a practice that strives to maximize the energy efficiency of an organization. It is an integrated approach that involves monitoring, analysis, control, and optimization of electricity usage to improve supply quality, ensure energy security, and reduce costs. Energy management covers all aspects related to the use of electricity, from generation to distribution and consumption, including the management of energy storage systems. Furthermore, it is also associated with strategic decision-making to enhance energy performance over time.

Energy Storage System

Energy Storage System (ESS), or Energy Storage System, is a technological solution that allows storing excess electrical energy generated by renewable sources, such as solar and wind, to be used later. These systems are made up of batteries, inverters, controllers and other equipment that work together to ensure their efficiency and effectiveness. In addition, the ESS can also be used to stabilize the electrical grid, acting as a voltage and frequency regulator, fundamental for the integration of renewable sources in the electrical system.

MicroGrid

Microgrids, also known as Microgrids, are self-sufficient and controllable local electrical systems. They can operate either connected to the main power grid or independently (in “island” mode), integrating distributed generation sources, energy storage and electrical loads. With the ability to control and monitor the generation, storage and distribution of electricity, Microgrids contribute to solving global challenges, such as the growing demand for energy, improving the quality of electricity supply and energy security. In addition, Microgrids are also designed to be highly integrated and automated, enabling recomposition and self-restoration actions in the event of interruptions in energy supply.

Wind Generators

Wind turbines are devices used to generate wind energy. They are composed of a propeller that rotates at high speeds, driven by the force of the wind, and a machine that generates electricity. The kinetic energy of the wind is transformed into electrical energy from the interaction of the propeller with the generating machine. Wind turbines are installed in wind farms, made up of many of these that work together, producing a significant amount of clean and renewable energy. In addition, wind turbines are also used in non-conventional applications, such as power generation on ships and offshore platforms.

Regulated Contracting Environment (RCE)

The Regulated Contracting Environment (ACR) is a system in which the purchase and sale of electricity is carried out under the regulation and supervision of the regulatory body of the electricity sector. In this environment, electricity tariffs are set by the regulator, and energy distribution concessionaires are responsible for supplying energy to consumers. In addition, concessionaires are also responsible for ensuring the quality and continuity of energy supply, as well as for making investments in electrical infrastructure. The ACR is characterized by the existence of a single tariff for all consumers, without the possibility of negotiation between generators and buyers. Energy negotiation in this environment takes place between the distribution concessionaires and the regulatory body, in order to set energy tariffs. In other words, the ACR is a way of guaranteeing universal access to electricity, as well as its quality and continuity, through regulation and supervision of the electricity sector.

Free Contracting Environment (FCE)

The Free Contracting Environment (ACL) for energy is a system regulated by the government that allows the free negotiation of electricity between generators and consumers, without the intermediation of regulated concessionaires. In this environment, companies and institutions can choose their energy source from different options offered by the market, based on criteria such as quality, price, source of generation and safety. In addition, the ACL also allows the negotiation of electricity generated by renewable sources, encouraging the use of clean energy sources. Therefore, the objective of the ACL is to increase the efficiency, transparency and competitiveness of the electricity sector, as well as to encourage technological innovation, the diversification of the energy matrix and the reduction of costs for the final consumer. For this, the free energy contracting environment is regulated by government agencies, such as ANEEL, which establish the rules and standards for trading electricity in the free market.

Power Commercialization

Energy Trading is the process by which power generators sell their production to final consumers or other companies in the electricity sector. This commercialization can take place through long-term contracts, auctions or in the Free Energy Market. Energy Trading allows generators to obtain revenue from the sale of their production and consumers to access a source of electrical energy in a more efficient and competitive manner. In addition, it is fundamental for the functioning of the electricity sector and for the development of renewable energy sources. This energy commercialization is divided between two market models: the Regulated Contracting Environment (ACR) and the Free Contracting Environment (ACL).

Free Energy Market

The Mercado Livre de Energia is an electricity trading platform that allows the direct purchase and sale of energy between generators and consumers, without the intermediation of regulated concessionaires. The market is based on auctions and offers the possibility of choosing the best offer, according to the needs of each consumer company. In addition, the Free Energy Market also favors the sale of renewable energy sources, expanding access to clean energy sources. Furthermore, it contributes to the promotion of competitiveness, efficiency and diversification in the electricity generation and commercialization industry.

Centralized Generation

Centralized Generation is the most traditional and common form of electricity generation, which involves large-scale production in facilities such as hydroelectric, thermoelectric and nuclear power plants. This energy is then distributed to the electrical power system, via transmission lines and substations, to be delivered to consumers. This energy generation model, therefore, is characterized by its efficiency and ability to meet the demand of large urban centers and regions.

Shared Generation

Shared generation is a modality in which several consumption units, such as homes, businesses or properties in general, share the solar energy generated by a single photovoltaic system installed somewhere. To make this arrangement viable, it is important that consumers, both individuals and legal entities, are located in the same concession or permission area as the energy distributor and have distributed microgeneration or minigeneration systems to consume this energy. Distributed microgeneration is characterized by having an installed capacity of up to 75 kilowatts (kW) for connection to the electrical grid. Distributed mini-generation covers systems with an installed capacity of more than 75 kW and up to 5 megawatts (MW). These installations can be connected to the conventional electrical grid, allowing the excess energy generated to be injected into the grid and compensated later.

Distributed Generation

Distributed Generation is a form of electricity production that consists of small-scale power generation, located close to the place of consumption. It is mainly generated by renewable sources such as solar, wind, hydroelectric and biogas. Distributed Generation allows the reduction of energy losses in transmission and distribution, in addition to being a more sustainable and economical alternative. The implementation of small distributed generation plants also contributes to energy security and to the decentralization of energy production. Therefore, it is a trend that has been growing and can be an efficient solution to the need for electricity.

Solar Farms

Solar farms are facilities for generating electricity from solar radiation. They work by capturing sunlight using photovoltaic panels, which convert energy into electric current. Solar farms are installed in large areas with good sun exposure, generally in regions with low environmental impact. They can be installed both on land and on building roofs, depending on energy needs and space availability. In addition, solar farms are aimed at companies and institutions that want to reduce their carbon footprint and their dependence on fossil energy sources, in order to obtain savings on their electricity bill. Still, they are an alternative for regions with little access to electricity, as they can provide electricity independently and cleanly.

Wind Power Plants

Wind farms are facilities for generating electricity using the wind. They consist of wind turbines composed of blades and a wind engine, converting wind energy into electricity. Wind farms are classified into two types: onshore and offshore wind farms. The onshore ones are installed on dry land, while the offshore ones, on underwater platforms or on the sea coast. Given this, these technologies are important in transitioning to renewable energy sources and mitigating the impact of energy use on climate change. The terminology used refers to a wind farm, in English “Wind Farm”. Therefore, this technology serves several markets, including distributed power generation, power for remote communities and its production for industry.

Photovoltaic Power Plants

Photovoltaic plants are installations that convert sunlight into electrical energy through the use of photovoltaic solar cells. These cells are composed of semiconductor material, such as silicon, which transforms solar energy into electric current. There are two types of photovoltaic plants: those connected to the electrical grid and those isolated from the grid. Grid-connected plants supply electricity during the day and draw from the grid at night, while isolated plants are used in remote areas without access to the electricity grid. In addition to serving several markets, including distributed power generation, power for remote communities and power production for industry, photovoltaic power plants are considered a clean and renewable source of electrical energy. Furthermore, the development of this technology has contributed to the global transition to cleaner and more renewable energy sources.

Wind Power Generation

Wind generation is a form of electricity production that uses the power of the wind to generate electricity. This is accomplished by means of wind turbines, which convert wind movement into mechanical energy and, later, into electrical energy. Wind generation is widely used as a source of electricity around the world, both in isolated and interconnected systems to the electrical grid. It is a clean and renewable source of energy, not emitting greenhouse gases or other pollutants during operation. Wind generation can be classified into two main types: onshore and offshore. Onshore wind generation uses wind turbines installed on dry land, generally in rural areas or areas with low population density. Offshore wind generation, on the other hand, uses wind turbines installed on underwater platforms, taking advantage of the stronger and more constant winds present at sea. In addition, wind generation is a viable and cost-competitive option, especially in relation to energy sources based on fossil fuels. Wind turbine technology is also advancing rapidly, making wind generation more efficient and affordable.

Solar Photovoltaic or Solar Power Generation

Photovoltaic generation, also known as solar generation, is a form of electrical energy production that uses solar cells to convert solar radiation directly into electricity. This technology is based on the photovoltaic effect, which occurs when photons from sunlight fall on the semiconductor materials of solar cells, generating free electrons, collected and converted into electric current. Photovoltaic generation is widely used in isolated systems, such as lighting systems, water pumps and other equipment. It is also incorporated in centralized generation systems, where solar cells are installed in large panels and interconnected in systems that supply electrical energy to electrical grids. The advantage of photovoltaic generation is its clean and renewable nature, as it does not emit greenhouse gases or other pollutants during operation. In addition, the source of energy used – sunlight – is abundant and available worldwide, making photovoltaic generation a viable and sustainable option for the production of electricity. It is an important option in the transition to cleaner and renewable energy sources.

Biomethane

Biomethane is a renewable energy source produced from the biodegradation of organic waste in an anaerobic digestion process. In this process, bacteria decompose organic matter without the presence of oxygen, releasing methane as one of the by-products. This methane can be captured and purified to be used as fuel gas in vehicles or to generate electricity in thermoelectric plants. Biomethane can also be produced from a wide range of organic wastes, including agricultural waste, food, sewage and animal waste. Furthermore, the biomethane production process can be carried out on a local scale or in commercial plants, making it a viable option for remote communities or regions with poor access to electricity.

Gaseous Biofuels or Biogas

Biogas is a renewable energy source produced from the anaerobic decomposition of organic waste, such as food scraps, wastewater and animal manure. This decomposition results in the release of a mixture of gases, mainly methane and carbon dioxide. Biogas can be used naturally or in a controlled industrial production process, with the aim of generating energy through combustion. Thus, Biogas is a viable and sustainable alternative for generating electrical and thermal energy, in addition to being an efficient solution for the treatment of organic waste. In addition, it can be used in power generation plants, industries, heating systems and vehicles that run on natural gas.

Liquid Biofuels

Liquid Biofuels are fuels derived from renewable sources, such as plants or agricultural residues. They are produced through fermentation or distillation processes, and used in vehicles as an alternative to conventional fossil fuels. Some of the most common liquid biofuels include ethanol, biodiesel and biochemical. These fuels have the main advantage of being renewable and capable of reducing greenhouse gas emissions. Furthermore, the production of liquid biofuels can be an important source of employment and income in rural areas.

Biofuels

Biofuels are renewable energy sources, produced from raw materials of biological origin, such as sugar cane, corn, soy and other agricultural crops. These fuels can be used as substitutes for fossil fuels. They are considered a more sustainable alternative, as their production and use contribute to the reduction of greenhouse gas emissions and other pollutants, as well as their production of economic development mechanism in regions with large agricultural production.

Green Hydrogen

Green Hydrogen is a clean, renewable energy source obtained through sustainable means. The production process of Green Hydrogen involves the decomposition of water into hydrogen and oxygen, applying electric current to it. This process is known as electrolysis, and its efficiency can be measured using the “Current Efficiency” indicator, which represents the relationship between the electrical current applied and the amount of hydrogen produced. In addition to being clean and renewable, green hydrogen offers a number of advantages over fossil energy sources. For example, it produces no greenhouse gas emissions and no air pollutants, making it a viable option for reducing your carbon footprint and mitigating your environmental impact. In addition, it is a very versatile source of energy, as it can be produced anywhere where there are renewable energy sources, allowing its use in remote and underserved regions.

Wind Energy

Wind Energy is a clean and renewable energy source that harnesses the power of wind to produce electricity. The conversion of the kinetic energy of the wind into electrical energy is carried out by means of wind turbines, also known as wind turbines. These structures rotate due to the force of the wind, generating electricity. The conversion efficiency depends on several factors, such as wind speed and wind turbine efficiency. The generation of wind energy is an important way to obtain clean and renewable energy, contributing to the preservation of the environment and the mitigation of climate change. Thus, it is a viable alternative to non-renewable energy sources widely used around the world. In addition, wind turbine technology has evolved significantly, making wind energy generation more efficient and economical.

Solar energy

Solar Energy or Photovoltaic Energy is a clean and renewable source of energy generated from the capture of sunlight by means of solar cells. Solar energy, known as Photovoltaic Energy or Solar Photovoltaic, in English, is widely used in domestic and commercial solar systems, as well as in large-scale systems to provide electrical energy for entire communities. Solar energy is generated using solar cells, also known as solar panels, which consist of thin layers of silicon or other semiconductor material. When sunlight hits the surface of solar cells, electrons are generated through the photovoltaic effect. These electrons are captured and converted into usable electrical current. Domestic and commercial solar systems typically consist of panels mounted on the roof of a home or building, while large-scale solar systems are typically installed on solar farms, capable of supplying electrical power to entire communities. In addition, solar energy can also be stored in batteries for use at night or in adverse weather conditions.

Clean and Renewable Energy

Clean energy is that which comes from renewable sources that do not release pollutants into the atmosphere, causing only minimal impacts on the installation site. These sustainable energy sources include wind energy (generated by the wind), solar energy (captured from sunlight), tidal energy (obtained from the movement of the tides), geothermal energy (from the Earth's heat), hydraulic energy (from the movement of water ), nuclear (obtained through nuclear reactions) and biomass (derived from organic matter). The use of clean energy, once encouraged around the world, reduces dependence on non-renewable energy sources, such as fossil fuels, and mitigates negative impacts on the environment. Some forms of clean energy stand out in their growth and expansion, such as solar and wind energy, which dominated the capacity expansion with a high share of all clean energy sources. Given this concept, the search for a transition to the use of clean energy is essential to ensure the sustainability of the planet and reduce the negative impacts of human activities on the environment.
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