Entergy and the Environment

Quick Reference Guide

Allowances – Greenhouse gas emission permits for companies and designed to minimize the economic impact of a cap-and-trade program.

Auction – Distributes allowances by having the regulated entity purchase the amount they need in a government auction.

Cap and Trade – an approach where the government sets an overall cap on emissions and creates allowances to emit up to the level of the cap

Carbon Capture and Sequestration – the process of capturing CO2 from combustion at the source, such as at coal-fired power plants

Carbon Dioxide – A colorless, odorless gas produced as a byproduct of the combustion of fossil fuels or the burning of plant matter, among other chemical processes.

Carbon Sinks – A natural or man-made reservoir that accumulates and stores carbon-containing chemical compound for an indefinite period. Sinks include oceans, plants, algae and man-made landfills.

Fossil Fuels – Fuels formed by natural resources such as buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years. Fossil fuels, which include coal, oil and natural gas, contain high percentages of carbon dioxide.

Intergovernmental Panel on Climate Change – The scientific body established by the United Nations Environment Program and the World Meteorological Organization to provide a clear, scientific view on climate change and its potential environmental and socio-economic consequences.

Parts Per Million – A metric used in science and engineering to express very dilute concentrations of a substance. Just as percent means out of a hundred, parts per million (or ppm) means out of a million.

Price Ceiling – A maximum dollar amount set by the government in order to prevent CO2 prices rising uncontrollably. This is also referred to as a price collar, which includes both a price cap and a price floor.

Price Signal – A quantifiable price placed on CO2.

Renewable Energy – Electric energy generated from Earth’s natural resources such as wind, sun, water, geothermal and biomass. Renewable energy does not emit greenhouse gases.

Renewable Energy Standard – A mandates that calls for a minimum percentage of electrical energy be supplied from renewable energy resources.