Glossary
AdditionalityAdditional emissions reductions are those which only occur as a result of an altered set of incentives created by the emissions markets.
Annex 1 CountriesA combination of the Organisation of Economic Cooperation and Development (OECD) states and the countries of Central and Eastern Europe with ‘economies in transition’. Referred to in the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005..
Annex B CountriesThese are the emissions-capped countries listed in Annex B of the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005.. Referred to in the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005..
Assigned AmountThe sum of emissions each Annex B country has agreed not to exceed during the first Kyoto Protocol commitment period (2008–12).
Assigned AmountThe sum of emissions each Annex B country has agreed not to exceed during the first Kyoto Protocol commitment period (2008–12). UnitsThe carbon allowances allocated to Annex B governments in 2008 that are associated with their Kyoto targets. Each allowance represents the right to emit one tonne of CO2eOne tonne of carbon dioxide equivalent (CO2e) is used as the standard measurement in the carbon market. It is a measure of the global warming potential of various greenhouse gases..
AuctioningThe mechanism of allocating emissions allowances to those firms prepared to pay most for them.
BankingA mechanism under a cap and trade system that allows participants to hold excess allowances or credits from one commitment period for use in later commitment periods.
BorrowingA mechanism under a cap and trade system that allows participants to use allowances designated for a future compliance period to meet current compliance period requirements.
Business As Usual (BAU)
Carbon DioxideA naturally occurring gas and one of the most abundant greenhouse gases in the atmosphere. Carbon dioxide is also a by-product of industrial processes, burning fossil fuels and land use changes.
Carbon NeutralAchieving net zero carbon emissions.
CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects.
CERCertified Emission Reduction - A tradable credit generated and issued from a CDMClean Development Mechanism - a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from these projects. project that represents GHG emission reductions equivalent to one tonne of CO2e.
CertificationIndependent verification that emissions reductions have taken place. Under the terms of the Kyoto Protocol, certification can only be carried out by a Designated Operational Entity.
Certified Emission ReductionA tradable credit generated and issued from a CDM project that represents GHGGases in the earth’s atmosphere that absorb and re-emit infra-red radiation. These gases occur through natural and human-influenced processes. Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride are the 6 GHGs subject to emission reduction in the Kyoto Protocol. emission reductions equivalent to one tonne of CO2eOne tonne of carbon dioxide equivalent (CO2e) is used as the standard measurement in the carbon market. It is a measure of the global warming potential of various greenhouse gases..
Clean Development MechanismThe CDM is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countriesThese are the emissions-capped countries listed in Annex B of the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDM and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005.. Referred to in the Kyoto ProtocolThe Kyoto Protocol originated at COP-3 to the UNFCCC in Kyoto, Japan, December 1997. It details emission obligations for Annex B countries and specifies the terms for JI, CDM and emissions tradingA market-based approach to achieving environmental objectives that allows sources reducing emissions below their target to sell the excess reductions to offset emissions at another source.. It entered into force on 16 February 2005..). Carbon credits (CERs) are generated from these projects.
CO2eOne tonne of carbon dioxide equivalent (CO2e) is used as the standard measurement in the carbon market. It is a measure of the global warming potential of various greenhouse gases.
Compliance Carbon MarketThe section of the carbon market operating under regulatory requirements, e.g. within the framework of the Kyoto Protocol.
Designated National AuthorityThe official body established by a Party to the Kyoto Protocol to review and give approval to projects proposed under the CDM/JI.
Emission Reduction UnitA tradable credit generated and issued from a JI project that represents GHGGases in the earth’s atmosphere that absorb and re-emit infra-red radiation. These gases occur through natural and human-influenced processes. Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride are the 6 GHGs subject to emission reduction in the Kyoto Protocol. emission reductions equivalent to one tonne of CO2eOne tonne of carbon dioxide equivalent (CO2e) is used as the standard measurement in the carbon market. It is a measure of the global warming potential of various greenhouse gases..
Emissions Trading
ERUA tradable credit generated and issued from a JI project that represents GHG emission reductions equivalent to one tonne of CO2e.
EU ETSAn EU-wide ‘cap-and-trade’ system for reducing CO2, which commenced in January 2005.
European UnionEach allowance permits the holder to release one tonne of carbon allowance dioxide within the EU Emissions Trading Scheme. Allowances are issued or sold to emitters by governments and must be surrendered annually to cover emissions during the past year.
European UnionEach allowance permits the holder to release one tonne of carbon allowance dioxide within the EU Emissions Trading Scheme. Allowances are issued or sold to emitters by governments and must be surrendered annually to cover emissions during the past year. Emissions Trading SchemeAn EU-wide ‘cap-and-trade’ system for reducing CO2, which commenced in January 2005.
GHGGases in the earth’s atmosphere that absorb and re-emit infra-red radiation. These gases occur through natural and human-influenced processes. Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride are the 6 GHGs subject to emission reduction in the Kyoto Protocol.
GrandfatheringAllocation of allowances to emitters on the basis of their past emissions. These allowances are generally distributed free-of-charge by the government to the affected emitters.
Greenhouse GasesGases in the earth’s atmosphere that absorb and re-emit infra-red radiation. These gases occur through natural and human-influenced processes. Carbon dioxideA naturally occurring gas and one of the most abundant greenhouse gases in the atmosphere. Carbon dioxide is also a by-product of industrial processes, burning fossil fuels and land use changes., methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride are the 6 GHGs subject to emission reduction in the Kyoto Protocol.
Joint ImplementationJoint Implementation is a mechanism under the Kyoto Protocol for transfer of emissions permits from one Annex B country to another. JI projects generate ERUA tradable credit generated and issued from a JI project that represents GHG emission reductions equivalent to one tonne of CO2e. credits.
Kyoto Protocol
Land use, land-use change and forestry (LULUCF)
Project design document (PDD)
REDDREDD+ strategies go beyond deforestation and forest degradation, and include the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in reducing emissions.+
Reduced emissions from deforestation and degradation (REDDREDD+ strategies go beyond deforestation and forest degradation, and include the role of conservation, sustainable management of forests and enhancement of forest carbon stocks in reducing emissions.)
RegistryAn electronic system that keeps a record of the issuance of carbon credits and any subsequent transactions.
UN Framework Convention on Climate Change (UNFCCC)
ValidationIndependent project evaluation of a Designated Operational Entity
VerificationA regular independent review by a Designated Operational Entity of a CDM project’s emissions reductions.
Verified Emission ReductionA tradable emission reduction that has been generated via a non-compliance system.
Voluntary Carbon MarketThe sum of all transactions of carbon credits in non-compliance markets. These credits comprise emission reductions for the purpose of selling them only to voluntary end user
Voluntary StandardAny standard ensuring the quality of carbon credits in the voluntary carbon market. These standards include certain requirements for project developers, e.g. third-party verificationA regular independent review by a Designated Operational Entity of a CDM project’s emissions reductions..
