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Glossary of Terms

Carbon Liability
As the U.S. poises on the brink of carbon regulation, carbon liability is a term that has become much more widely used.

Right now, the U.S. does not regulate any greenhouse gas emissions. However, analysts are certain that carbon regulation (the regulation of carbon dioxide) will be implemented in the future because of increasing international concern about climate change.

What kind of regulation is still a matter of debate (see carbon tax and cap and trade emissions). However, one way or another, there will be some kind of a price put on carbon. Businesses with high-carbon costs (such as fossil fuel-based electrical generation, automobile manufacturing, forest products, chemicals manufacturing, etc.) will then face increased regulations and operating costs as a result.

This risk is known as carbon liability.
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- James Hansen, NASA climate researcher
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