|
Additionality |
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|
The principle that only those projects that would not have happened
anyway should be counted for carbon credits. Learn
more. |
|
Annex 1 Countries |
- |
The 36 industrialized countries and economies in transition listed
in Annex 1 of the UNFCCC.
Their responsibilities under the Convention are various, and include
a non-binding commitment to reducing their GHG
emissions to 1990 levels by the year 2000. A full list of these
countries is available
here.
See also non-Annex
1 countries. |
|
Annex B Countries
|
- |
The 39 emissions-capped industrialized countries and economies in
transition listed in Annex B of the Kyoto
Protocol. Legally-binding emission reduction obligations
for Annex B countries range from an 8% decrease to a 10% increase
(Iceland) on 1990 levels by the first commitment period of the Protocol,
2008 - 2012.
Annex 1 or Annex B?
In practice, Annex 1 of the Convention
and Annex B of the Protocol
are used almost interchangeably. However, strictly speaking, it
is the Annex 1 countries
that can invest in JI /
CDM projects
as well as host JI projects, and non-Annex
1 countries that can host CDM projects, even though
it is the Annex B countries that have the emission reduction obligations
under the Protocol. Note that Belorus and Turkey are listed in Annex
1 but not Annex B; and that Croatia, Liechtenstein, Monaco and Slovenia
are listed in Annex B but not Annex 1.
(source: www.cdmcapacity.org/glossary.html)
|
Assigned Amount Unit |
AAU |
A tradable unit, equivalent to one metric tonne of CO2
emissions, based on an Annex
1 country's assigned carbon emissions goal under the
Kyoto Protocol.
AAUs are used to quantify emissions reductions for the
purpose of buying and selling credits between Annex 1 countries.
|
Bio-sequestration |
BS |
Reduction of existing atmospheric CO2
through capture and storage in plants and soils. Learn
more. |
Cancellation |
|
Cancellation is a way of reducing overall emissions by purchasing
carbon offsets and
retiring them so that they may not be used to offset others' emissions.
Cancelled credits can no longer be traded. |
Carbon Dioxide |
CO2 |
This greenhouse gas
is the largest contributer to man-made climate change. Emitted from
fossil fuel burning and deforestation. |
Carbon Dioxide Equivalent
|
CO2e |
A measure of the global warming potential of a particular greenhouse
gas compared to that of carbon
dioxide. One unit of a gas with a CO2e rating of 21,
for example, would have the warming effect of 21 units of carbon
dioxide emissions (over a time frame of 100 years). |
Carbon
Credit |
-
|
Used interchangeably
with the term "Carbon offsets".
|
Carbon Offset |
-
|
A credit for negating or diminishing the impact of emitting a ton
of carbon dioxide
by paying someone else to absorb or avoid the release of a ton of
CO2 elsewhere . |
Certified Emissions Reductions
|
CERs |
Tradable units issued by the UN through the Clean
Development Mechanism for emission reduction projects
in developing countries. Each CER represents one metric tonne of
carbon emissions reduction. CERs are categorized by the year, or
vintage, in which they are generated. They can be purchased
before the actual reduction occurs (see discussion on forward
purchasing). CERs can be used by Annex
1 countries to meet their emissions goals under the
Kyoto Protocol. |
Chicago Climate Exchange |
CCX |
A US-based, voluntary but legally binging greenhouse gas emissions
registry, reduction, and trading system. Visit
the CCX website. |
Clean Development Mechanism
|
CDM |
A provision of the Kyoto Protocol
that allows developed countries (Annex
1) to offset their emissions by funding emissions-reduction
projects in developing countries (non-Annex
1). |
Compliance Market |
-
|
The regulated market for carbon credits (specifically CERs,
EUAs,
AAUs, and ERUs)
used to reach emissions targets under the
Kyoto Protocol or the EUETS.
Also called the Regulated Market. |
Double-Counting |
-
|
Occurs when a carbon emissions reduction is counted toward multiple
offsetting goals or targets (voluntary or mandated). An example
would be if an energy efficiency project sold voluntarily credits
to business owners, and the same project was counted toward meeting
a national emissions reduction target. |
|
Emission Reduction Units |
ERUs |
A tradable unit, equivalent to one metric tonne of CO2 emissions,
generated by a Joint Implementation
project and used to quantify emissions reductions for the purpose
of buying and selling credits between Annex
1 countries under the Kyoto
Protocol. |
Emissions Trading |
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|
A provision of the Kyoto Protocol
that allows Annex 1 countries
to trade emissions reduction credits in order to comply with their
Kyoto-assigned targets. This system allows countries to pay and
take credit for emissions reduction projects in developing countries
where the cost of these projects may be lower, thus ensuring that
overall emissions are lessened in the most cost-effective manner.
|
Energy Efficiency |
EE |
Energy efficient products or systems use less energy to perform
the same task as conventional products or systems. |
European Union Emissions
Allowance |
EUA |
Allows the holder to emit one tonne of carbon
dioxide under the EUETS.
EUAs may be used among countries in the EUETS as well as
countries where the Scheme has been linked to other emissions trading
schemes. |
European Union
Emissions Trading Scheme |
EUETS |
European Union Emissions Trading Scheme, a greenhouse
gas emissions trading scheme which aims to limit emissions
by imposing progressively lower limits on power plants and other
sources of greenhouse gases. The scheme consists of two phases.
Phase I runs from January 1, 2005 to December 31, 2007; Phase II
from 2008 to 2012. |
Ex-ante |
-
|
In terms of carbon offsets,
ex-ante refers to reductions that are planned or forecasted but
have not yet been achieved. The exact quantities of the reductions
are therefore uncertain. |
Ex-post |
-
|
As opposed to ex-ante
offsets, ex-post reductions
have already occurred and their quantities are certain. |
Geo-sequestration |
-
|
The underground injection of CO2
emitted by fossil fuel power generation. At this point, geological
sequestration is still very costly. |
Gold Standard |
GS |
An international carbon offset standard that goes beyond CDM
requirements, mandating other benefits such as environmental
benefits and local stakeholder involvement and benefits. The Standard
only approves projects centered on renewable
energy and energy
efficiency; it deliberately excludes biosequestration
projects.
See also Voluntary Gold
Standard. |
Greenhouse Gases |
GHGs |
Gases that contribute to climate change. Those named in the Kyoto
Protocol include carbon
dioxide (CO2), methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur
hexafluoride (SF6)
The EUETS
only covers CO2 emissions, but CDM
and JI projects
can address any of these six gases. |
International Transaction
Log |
ITL |
A registry system that aims to ensure the validity of carbon credits
issued under the Kyoto Protocol.
|
ISO 14064 |
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|
Standards for greenhouse gas
accounting and verification introduced by the International Organization
for Standardization in March 2006. ISO 14064 aims to help governments
and businesses engage in effective emissions reduction projects
as well as participate in carbon trading. |
Joint Implementation Projects
|
JI |
A provision of the Kyoto Protocol
that allows those in in Annex
1 (developed) countries to undertake projects in other
Annex 1(developed or transitional) countries (as opposed to those
undertaken in non-Annex 1
countries through the CDM).
|
Kyoto Protocol |
-
|
An international treaty that requires participating countries to
reduce their emissions by 5 percent below 1990 levels by 2012. The
protocol, developed in 1997, is administered by the Secretariat
of the UN Framework Convention
on Climate Change.
Learn more at http://unfccc.int. |
|
Kyoto Units |
-
|
A variety of units, including AAUs,
ERUs, and
CERs,
which allows for trading of carbon
credits among Annex
1 countries to meet their Kyoto
Protocol-assigned emissions targets. |
Non-Annex 1 Countries |
-
|
A group of mostly developing countries which have not been assigned
emissions targets under the Kyoto
Protocol and which are recognized
by the UNFCCC as
being especially vulnerable to the effects of climate change. See
also Annex 1 countries.
Learn more at http://unfccc.int/parties_and_observers/items/2704.php.
|
|
Non-Certified Credits |
-
|
Carbon credits that
are sold on the non-regulated
market. Lacking certification, these credits can only
be sold for voluntary offsetting.
|
| Non-Regulated
Market |
- |
See
Voluntary Market. |
Offset Company |
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|
A company whose primary purpose is to create or sell offsets,
either directly to consumers or through another organizations that
wish to offer offsets to their clients. |
Offset Provider |
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|
Offset providers include both offset
companies and other businesses that utilize the services
of offset companies to provide offsets to their clients. |
Regulated Market |
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|
See Compliance Market. |
Renewable Energy |
RE |
Projects that develop or implement the production of energy from
greenhouse gas
emissions-free sources, such as wind, hydro, biomass, and solar.
|
United Nations Framework Convention
on Climate Change |
UNFCCC |
An international treaty, developed at the 1992 UN Conference on
Environment and Development, which aims to combat climate change
by reducing global greenhouse
gas emissions. The original treaty was considered legally
non-binding, but made provisions for future protocols, such as the
Kyoto Protocol,
to set mandatory emissions limits.
Learn more at http://unfccc.int/2860.php. |
Verified Emissions Reductions
|
VERs |
Reductions that, unlike CERs,
are sold on the voluntary market.
VERs are linked neither to the Kyoto
Protocol nor to the EUETS.
Sometimes VERs are referred to as Voluntary Emissions Reductions.
|
Voluntary Market |
-
|
The non-regulated market for carbon
credits (especifically VERs)
that operates independently from Kyoto
and the EUETS.
Also called the Non-Regulated Market. |
|
Voluntary Carbon Standard
|
VCS |
A standard which accredits projects producing credits for the Voluntary
Market that meet certain criteria. Learn
more. |
Voluntary Gold Standard |
VGS |
The international Voluntary Gold Standard measures projects against
strict criteria that address environmental and social concerns.
The Standard only approves projects centered on renewable
energy and energy
efficiency; it deliberately excludes biosequestration
projects. Learn
more. |
Voluntary Offsetting |
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|
Offsetting purchases made by individuals, businesses, and institutions
that are not legally mandated. |
