Glossary
 
PCC Glossary : A B C D E F G H I J K L M N O P R S T U V W

(A)

Additionality principle :The principle that a project should only be able to earn credits if the GHG emission reductions produced by the project are additional to what would have happened in the absence of the carbon credit component.

Additionality tool : Guidelines elaborated by the CDM Executive Board to help assess whether a project is additional or not.

Afforestation and Reforestation (A/R) Projects : Afforestation and reforestation (A/R) projects involve the growing of forest on land that has not been forested for a period of at least 50 years (afforestation) or on non-forested land (reforestation) through planting, seeding and/or the promotion of natural seed sources.

Agriculture, Forestry and Other Land Use (AFOLU) : , see Land Use, Land Use Change and Forestry

Allocation : The distribution of allowances to participants in an emissions trading scheme or other entities. Allocation can be done for free or by selling the allowances (see auctioning). Principles for free allocation include grandfathering, benchmarking and projections.

Allowance : Legally defined unit (EUAs, AAUs, RGAs, NZUs and others) that entitles the holder to emit one tonne of CO2e or another quantity of greenhouses gases. Also known as emission allowance or emission permit. See also European Union Allowance (EUA).

Annex B Countries : Annex B countries are the 39 emissions-capped countries listed in Annex B of the Kyoto Protocol. In practice, Annex I of the UNFCCC (see below) and Annex B of the Kyoto Protocol are often used interchangeably.

Annex Z : Annex Z of Marrakesh Accords (COP7) defines the maximum amount of forest management credits each Annex I country can use to meet its Kyoto commitments.

Annex I Countries : Include the industrialised OECD countries and countries with economies in transition listed in Annex I of the UNFCCC. Belarus and Turkey are listed in Annex I but not in Annex B; and Croatia, Liechtenstein, Monaco and Slovenia are listed in Annex B but not in Annex I. In practice, however, Annex I of the UNFCCC and Annex B of the Kyoto Protocol are often used interchangeably.

Annex II Countries : Annex II of the UNFCCC includes all original OECD member countries, but not the countries with economies in transition. Annex II countries are required to provide financial resources enabling developing countries to undertake emissions reductions.

Approved Consolidated Methodology (ACM) : Large-scale methodology to calculate emission reductions for a project, approved for use by the Executive Board of the CDM. Consolidated from a number of approved methodologies (AMs).

Approved Methodology (AM) : Methodology approved by the CDM Executive Board to calculate emission reductions for a CDM project that is not small-scale and not an A/R project (see below).

A/R Projects : see Afforestation and Reforestation Projects.

Assigned Amount (AA) and Assigned Amount Units (AAUs) : The assigned amount is the total volume of greenhouse gases that each Annex B country is allowed to emit during the first commitment period (see explanation below) of the Kyoto Protocol. An Assigned Amount Unit (AAU) is a tradable unit of 1 tonne CO2e.

Auctioning : Common term used for the sale of allowances, as opposed to allocating them for free. See also Allocation.

(B)

Banking : The transfer of allowances or credits from one compliance period to the next. Parties to the Kyoto Protocol may bank as many AAUs they wish as long as they follow commitment period reserve rules, CERs corresponding to 2.5% of its target, and ERUs corresponding to 2.5% of its target,to use them in subsequent commitment periods. The EU ETS allows unlimited banking from the second compliance period (2008-12) onwards, but did not permit banking from the first to later periods. Also known as carry-over or hoarding.

Baseline and Baseline Scenario : The baseline represents forecasted emissions under a business-as-usual (BAU; see explanation below) scenario, often referred to as the 'baseline scenario', i.e. expected emissions if the emission reduction activities were not implemented.

Benchmarking : An allocation method in which allowances are distributed based on output (e.g. one allowance per MWh generated) or on intensity standards in the industry, based on best-performing companies.

Bubble : Entity where two or more emission sources (for example, countries) are treated as if they were a single emission source. The European Union constitutes a bubble under the Kyoto Protocol.

Bundle : Bundling signifies the bringing together of several CDM project activities, to form a single project to reduce CDM-related transaction costs.

Business As Usual Scenario (BAU) : A business as usual scenario is a policy neutral reference case of future emissions, i.e. projections of future emission levels in the absence of changes in current policies, economics and technology.

Borrowing : A mechanism under a cap and trade system that allows entities to use allowances designated for a future compliance period to meet current compliance period requirements.

(C)

Clean Development Mechanism (CDM): A mechanism established by Article 12 of the Kyoto Protocol for project-based emission reduction activities in developing countries. The CDM is designed to meet two main objectives: to address the sustainable development needs of the host country, and to increase the opportunities available to Parties to meet their reduction commitments. The CDM is a mechanism for project-based emission reduction activities in developing countries (non-Annex B countries). Carbon credits (CERs) are generated from projects that lead to certifiable emissions reductions that would otherwise not occur. The provision of the Kyoto Protocol that governs project-level carbon credit transactions between developed (Annex 1) and developing (non-Annex 1) countries.

CDM Executive Board (CDM EB) : The CDM Executive Board was finalized at COP7 in 2001, its aim being to supervise the Clean Development Mechanism, under the authority and guidance of the COP/MOP. Body that registers validated project activities as CDM projects, issues certified emission reductions (CERs) to relevant projects participants, and manages series of technical panels and working groups meetings (see Methodologies Panel). The CDM EB is accountable to the Conference of the Parties to the Kyoto Protocol. The CDM Executive Board is authorized to approve methodologies for baselines, monitoring plans and project boundaries; accredit operational entities; and develop and maintain the CDM registry.

Cap and Trade : A design for emissions trading systems under which total emissions are limited or 'capped'. Tradable emission allowances corresponding to the total allowed emission volume are allocated to participants for free or through auctioning. Contrasts with baseline-and-credit approaches where only deviations from a baseline are tradable. Examples are the EU ETS, international emissions trading under the Kyoto Protocol and the proposed emissions trading scheme in the Climate Security Act of Senators Lieberman and Warner.

Carbon Capture and Storage (CCS) : Process consisting of the separation of CO2 from industrial and energy-related sources, transport to a storage location and long-term isolation from the atmosphere. CO2 may be stored under ground in old oil and gas fields, non commercial coal fields and saline aquifers. It may also be injected into the ocean. Also known as carbon capture and geological storage (CCGS).

Carbon leakage : Carbon leakage occurs when production of goods is moved to countries with less strict climate policy (e.g. India and China) than the original country (e.g. EU).

Carbon Neutrality : The practice of purchasing and retiring emission credits or allowances corresponding to the amount of GHG emissions from for instance an activity, company or country.

Carbon Sink : Natural or human-made systems that absorb carbon dioxide from the atmosphere and store them. Forests are the most common form of sink, in addition to soils, peat, permafrost, ocean water and carbonate deposits in the deep ocean.

Countries with economies in transition (EIT) : Fourteen Annex I countries that include some Central and East European countries and former republics of the Soviet Union that are in transition from centrally-planned economies to market-based economies.

CDM Registry : System of accounts into which the CDM EB issues CERs from registered CDM project activities ( CDM Registry).

Commitment Period : The five-year Kyoto Protocol Commitment Period is scheduled to run from calendar year 2008 to calendar year-end 2012.

Conference of the Parties (COP) : The COP is the supreme body of the UNFCCC. It meets once a year to review the progress. COP-11 took place in Montreal, Canada in November/December 2005 and was also the first Meeting of the Parties to the Kyoto Protocol (MOP-1). COP-12 was held in Nairobi in November 2006 and COP-13 in December 2007 in Bali. COP-14 will be in Poznan, Poland in late 2008, while COP-15 takes place in Copenhagen, Denmark in late 2009.

Conference of the parties serving as the meeting of the parties to the Protocol (CMP): The highest decision-making body of the Kyoto Protocol. Also known as COP/MOP.

Crediting Period : The crediting period is the duration when a project generates carbon credits. The crediting period shall not extend beyond the operational lifetime of the project. For CDM projects crediting period continues either a 7-year period, which can be renewed twice to make a total of 21 years, or a one-off 10-year period; for JI projects crediting period overlaps with the first commitment period under the Kyoto Protocol (2008-2012).

Certification: A process by which a GHG reduction project is audited by a government agency or independent authority to determine that it meets established criteria. For instance, the act of approving emission reductions from a carbon project and issue emission reduction credits to the entity that owns the rights to the project credits. Emission reductions need to be certified by independent third parties through a verification process. Certification is endorses the existence, eligibility and title of the emission reduction (in relation to the underlying project). Once certification has occurred the emission reduction then becomes a separate tradable commodity.

CCX ( Chicago Climate Exchange)  : Voluntary cap-and-trade scheme that started trading in 2003. Members make a voluntary commitment to reduce GHG emissions. Among the members are companies from North America, municipalities, US states, universities. The CCX also certifies and trades offset credits under its own standard.

CO2e(Carbon Dioxide Equivalent) : "Carbon dioxide equivalent" The unit used in the Kyoto Protocol.Measurement unit used to indicate the global warming potential (GWP) of greenhouse gases. Carbon dioxide is the reference gas against which other greenhouse gases are measured. See Global Warming Potential for conversion rates. The universal unit of measurement used to indicate the global warming potential (GWP) of each of the 6 greenhouse gases. It is used to evaluate the impacts of releasing (or avoiding the release of) different greenhouse gases.

tCO2e
Tonnes of carbon dioxide equivalent, units for carbon dioxide equivalent calculations

Carbon Dioxide or CO2: A naturally occurring gas that is a by-product of burning fossil fuels and biomass, land use changes and other industrial processes. Carbon dioxide is the reference gas against which other greenhouse gases are measured

Carbon Sequestration:

It refers to projects that capture and store carbon in a manner that prevents it from being released into the atmosphere for a specified period of time, the storage area is commonly referred to as a carbon sink. Carbon Sequestration projects include:

  • Forest Sequestration (Forest)
  • Land Conservation (Land)
  • Soil Conservation & Land Use (Soil)
  • Waste CO2 Recovery/Deep Injection (Wast/Inj)

Certified Emission Reductions (CERs): Annex I investors in Clean Development Mechanism (CDM) projects can earn Certified emission reduction units (CERs) for the amount of greenhouse emission reductions achieved by their CDM projects, provided they meet certain eligibility criteria. For example, CERs generated under the CDM will only be recognized when:

  • the reductions of greenhouse gas emissions are additional to any that would occur in the absence of the certified project (see Additionality)
  • requirements of the Host Country are met and
  • The CDM Adaptation charge is paid i.e. The Levy to offset climate change adaptation costs in "vulnerable" developing countries. This levy is generally envisioned as an initial percentage of the total financing cost and is paid up front by the project sponsor, in the form of either currency or emission credits, which are then auctioned. Proceeds are held in an adaptation fund for later disbursement.

CERs are permits generated through the CDM. It can be used to meet an Annex B Party's emission commitment or as the unit of trade in GHG emissions trading systems.

Chlorofluorocarbons (CFCs): CFCs are organic compounds that contain carbon, chlorine, and fluorine atoms. They are widely used as coolants in refrigeration and air conditioners, as solvents in cleaners, and as propellants in aerosols. CFCs are the main cause of stratospheric ozone depletion. One kilogram of the most commonly used CFCs may have a direct effect on climate thousands of times greater than that of one kilogram of CO2. However, because CFCs also destroy ozone - itself a greenhouse gas - the actual effect on the climate is unclear.

Climate Change: A change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability over comparable time periods (Source: UNFCCC)

Compliance market : Market for emission reductions purchased by organizations with Kyoto targets.

Emissions: Pollutant gases emitted from industrial processes and the engine exhausts of transport vehicles that can have an undesired effect (such as contributing to the greenhouse effect). The act, specific to cap-and trade schemes, of surrendering the required amount of allowances, or some combination of allowances and offsets, to cover an entity's emissions. Achievement by a Party in meeting its quantified emission limitation and reduction commitments under the Kyoto Protocol.

(D)

Designated National Authority (DNA) : The official body representing the government of the host country for CDM/JI projects. For JI host countries, the national authority approves the projects and issues the emission reduction units (ERUs). For CDM host countries, the designated national authority issues a non-objection letter necessary for the project approval, if it agrees that a project is in line with its sustainable development objectives. The DNA also issues the Letter of Approval (LoA) needed for the registration of a CDM project. A project will need both a host country approval as well as investor country approval.

Designated Operational Entity (DOE), see also Accredited Independent Entity (AIE). A domestic legal entity or an international organization accredited and designated by the CDM EB. The DOE validates and requests registration of a proposed CDM projects activity as well as verifies emission reductions of a registered CDM project activity.

(E)

 

Emissions Trading : Emissions trading is a regulatory program that allows firms the flexibility to select cost-effective solutions to achieve established environmental goals. With emissions trading, firms can meet established emissions goals by: (a) reducing emissions from a discrete emissions unit; (b) reducing emissions from another place within the facility; or (c) securing emission reductions from another facility. Emissions trading encourage compliance and financial managers to pursue cost-effective emission reduction strategies and incentivize emitting entrepreneurs to develop the means by which emissions can inexpensively be reduced.

Emission Reduction Purchase Agreement (ERPA) : Binding purchase agreement signed between buyer of CERs or ERUs - or other emission reduction credits - and seller. See primary market.

Emissions Reductions (ERs) : Emissions reductions generated by a project that have not undergone a validation/verification process, but are contracted for purchase.

European Union Allowances (EUA) : EU Allowances, the tradable unit under the EU ETS. Each allowance equals 1 tonne of CO2. EUAs are bankable from Phase 2 to Phase 3 of the EU ETS.

EU ETS (European Union Emissions Trading Scheme) : Trading Scheme within the European Union, which was launched on January 1, 2005. The scheme is based on Directive 2003/87/EC, which entered into force on 25 October 2003. The Phase I (2005 - 2007) has received much criticism due to oversupply of allowances and the distribution method of allowances (via grandfathering rather than auctioning), Phase II (2008-2012) links the ETS to other countries participating in the Kyoto trading system.

(F)

Flexible Mechanisms : Under the Kyoto Protocol, a collective term for International Emissions Trading, the Clean Development Mechanism and Joint Implementation.

Fuel Switching : The process of moving from a higher carbon content fuel, such as coal, to a lower carbon content fuel, such as natural gas, in power generation and industrial process for purposes of reducing carbon emissions.

(G)

Global Warming: The continuous gradual rise of the earth's surface temperature thought to be caused by the greenhouse effect and responsible for changes in global climate patterns (see also Climate Change).

Global Warming Potential (GWP) :
The global warming potential is the impact a greenhouse gas (GHG) has on global warming. By definition, CO2 is used as reference case, hence it always has the GWP of 1. GWP changes with time, and the IPCC has suggested using 100-year GWP for comparison purposes. Below is a list of 100-year GWPs used in the Kyoto Protocol for the six Kyoto gases:

Carbon dioxide (CO 2)

GWP: 1

Methane (CH 4)

GWP: 21

Nitrous oxide (N 2O)

GWP: 310

Hydrofluorcarbons (HFCs) GWP:

GWP: 150 – 11 689

Perfluorcarbons (PFCs)

GWP: 6500 – 9 200

Sulphur hexafluoride (SF 6)

GWP: 23 900

 

Greenhouse Gas Reduction: A greenhouse gas reduction is a reduction in emissions that is recognized to contribute to climate change. e.g. carbon dioxide, methane, nitrous oxide, hydro fluorocarbons, per fluorocarbons, and sulfur hexafluoride. Greenhouse gas reductions are often measured in tons of carbon dioxide-equivalent. For example, 1 ton of methane has the same global warming potential as 20.9 tons of carbon dioxide.

Greenhouse gases (GHGs) :
Greenhouse gases (GHGs) are trace gases that control energy flows in the Earth's atmosphere by absorbing infra-red radiation. Some GHGs occur naturally in the atmosphere, while others result from human activities. There are six GHGs covered under the Kyoto Protocol - carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). CO2 is the most important GHG released by human activities.

Generation (Electricity): The process of producing electric energy from other forms of energy; also, the amount of electric energy produced, expressed in watt hours (Wh).

Gold Standard : Initiated by WWF, SSN and Helio International, the Gold Standard for CDM projects was launched in 2003 after a wide-ranging stakeholder consultation among key actors of the carbon market as well as governments. It offers project developers a tool with which they can ensure that CDM, JI and VER projects have real environmental benefits and, in so doing, give confidence to host countries and the public that projects represent new and additional investments in sustainable energy services. Eligible project types are renewable energy and energy efficiency.

Group of 77 and China (G77/China) : G77/China is the developing country-group in the climate negotiations, consisting of more than 130 developing countries.

Grid: The layout of an electrical distribution system.

(H)

Host Country : A host country is the country where a JI or CDM project is physically located. A project has to be approved by host country to receive CERs or ERUs.

Hot Air : Excess permits (AAUs) that have occurred due to economic collapse or declined production for reasons not directly related to intentional efforts to curb emissions. Russia and Ukraine in particular have significant hot air volumes.

HFC-23 (Trifluoromethane) About 98% of HFC-23 emissions are created as a byproduct in the production of HCFC-22 and generally are vented to the atmosphere. HCFC-22 is used mostly as the refrigerant for stationary refrigeration and air conditioning.

Hydrofluorocarbons, or HFCs : One of the six greenhouse gases, controlled in the Kyoto Protocol. Are produced commercially and are largely used in refrigeration and insulating foam.

Hydro fluorocarbons (HFC's), Per fluorocarbons (PFC's), Sulphur Hexafluoride (SF6)
Although, they are more potent greenhouse gases and tend to have comparatively high GWPs, they are emitted in such small quantities that their overall impact is currently small.

In the US, Sulpher Dioxide (SO2) is also classified as a greenhouse gas and is regulated under the domestic greenhouse gas program.

(I)

International Emissions Trading (IET) : International emissions trading, one of the three flexible mechanisms under the Kyoto Protocol, allows for transfer of AAUs across international borders or emission allowances between companies covered by a cap-and-trade scheme. See emissions trading.

International Organization for Standardization (ISO) : The world's largest developer and publisher of International Standards. The ISO is composed of a network of the national standards institutes of 157 countries, with a Central Secretariat in Geneva, Switzerland. In March 2006, ISO launched the ISO 14064:2006 standards for GHG accounting and verification.

International Transaction Log (ITL) : Database of all tradable credits under the Kyoto Protocol and the application that verifies all international transactions and their compliance with Kyoto rules and policies.

Intergovernmental Panel on Climate Change (IPCC): IPCC was established by World Meteorological Organisation (WMO) and the United Nations Environmental Programme (UNEP) in 1988 to assess scientific, technical and socio- economic information relevant for the understanding of climate change, its potential impacts and options for adaptation and mitigation. It is open to all Members of the UN and of WMO .

Issuance : Issuance refers to the instruction by the CDM Executive Board to the CDM registry administrator to issue a specified quantity of CERs for a project activity into the pending account of the Executive Board in the CDM registry.

Internal Abatement : In emissions trading terminology, the act of reducing one's own emissions for compliance purposes, e.g. through technology upgrades and fuel switching, as opposed to buying allowances/offsets or scaling down production.

Inventory : Country report, under the Kyoto Protocol, on anthropogenic GHG emissions and removals delivered on a regular basis according to the IPCC guidelines.

(J)

Joint Implementation (JI) : Joint Implementation is one of the three flexible mechanisms under the Kyoto Protocol, for transfer of emissions permits from one Annex B country to another. JI generates ERUs on the basis of emission reduction projects leading to quantifiable emissions reductions.

(K)

Kyoto Protocol: The Kyoto Protocol originated at the 3 rd COP to the United Nations Convention on Climate Change held in Kyoto, Japan in December 1997. It specifies the level of emission reductions, the deadlines and methodologies that signatory countries (i.e. countries who have signed the Kyoto Protocol) are to achieve.

The Kyoto Protocol specifies the deadlines and specific levels of greenhouse gas reductions that signatory countries are to achieve. Overall, developed countries are to reduce greenhouse gas emissions by 5.2% between 2008 and 2012 as measured against 11000px emission levels.

Kyoto gases : The six greenhouse gases (GHG) included in the Kyoto Protocol. See Global warming potential.

(L)

Lagoon : Anaerobic lagoons are used to dispose of animal waste, particularly that of cows and pigs and capture the biogas produced by anaerobic bacteria present in the waste matter. The biogas produced is 50 to 75% methane, with carbon dioxide making up most of the rest and is usually used to produce electricity, but can also be used for water or space heating.

Land Use, Land Use Change and Forestry (LULUCF) : The land-use, land-use change and forestry (LULUCF) sector was included under the Kyoto Protocol to take into consideration certain human-induced activities that remove greenhouse gases from the atmosphere, also known as carbon "sinks". The following activities referred to in Article 3, paragraphs 3 and 4 of the Kyoto Protocol, as defined in paragraph 1 of the annex to decision 16/CMP.1: afforestation, reforestation, deforestation (the direct human-induced conversion of forested land to non-forested land), revegetation, forest management, cropland management, grazing land management.

Long-term Certified Emission Reductions (lCERs) : , see also Temporary Certified Emission Reductions (tCERs). Credits issued for an afforestation or reforestation project activity that expires at the end of its crediting period. lCERs are issued for the net anthropogenic greenhouse gas removals by sinks achieved by the project activity during each verification period.

LULUCF : Land Use, Land Use Change and Forestry.

(M)

Monitoring: Monitoring relates to the regular measurement, assessment and recording of emissions and emission reductions by an emitting firm or an emission reduction project. For example, emitting firms may monitor the actual level of emissions reduction achieved as a result of internal abatement programs.

Marrakesh Accords : Agreement reached under the UNFCCC on modalities and procedures of the international climate change policy regime developed at the seventh Conference of the Parties. The Marrakesh Accords cover significant principles for technology transfer, accounting, flexible mechanisms implementation etc.

Methodologies Panel (Meth Panel) : The Methodologies Panel was established to develop recommendations to the Executive Board on guidelines for methodologies for baselines and monitoring plans and prepare recommendations on submitted proposals for new baseline and monitoring methodologies.

(N)

Non-Annex I countries : Countries that have ratified or acceded to the UNFCCC, but not included in Annex I and have no emission reduction targets. Annex I is an Annex in the UNFCCC listing those countries that are signatories to the Convention and committed to emission reductions.

(O)

Ozone: Three-atom oxygen compound (O3) found in two layers of the Earth's atmosphere. One layer of beneficial ozone occurs at 7 to 18 miles above the surface and shields the Earth from ultraviolet light. Several holes in this protective layer have been documented by scientists. Ozone also concentrates at the surface as a result of reactions between byproducts of fossil fuel combustion and sunlight, having harmful health effects.

Ocean Sequestration: see Carbon capture and storage.

Offset credits or offsets : Emission reduction credits from project-based activities that can be used to meet compliance or corporate objectives as a supplement or alternative to reducing one's own emissions. In a cap-and-trade scheme, offsets may be used instead of allowances, sometimes up to a limit (see credit limit). CERs and ERUs are types of offset credits

Over the Counter (OTC) market: Trades arranged by brokers, as opposed to trades on exchanges or bilateral (direct) trades.

Operational Entity: An independent entity, accredited by the CDM Executive Board, which validates CDM project activities, verifies and certified emission reductions generated by such projects.

(P)

PCC Positive Climate Care Private Limited. (Company Name)

Pollution: Any substances in water, soil, or air that degrade the natural quality of the environment, offend the senses of sight, taste, and smell, and/or cause a health hazard. The usefulness of a natural resource is usually impaired by the presence of pollutants and contaminants.

Permit : see Allowance.

Programme of Activities (PoA) : A voluntary action, implementing a policy, measure or stated goal, managed by a public or private entity, and which results in emission reductions or removals that are additional. A PoA can last for 28 years. Subactivities or CDM programme activities (CPAs) can be added at any time during this period.

Project Design Document (PDD) : Document describing the characteristics of a CDM or JI project, completed by project developers in order to register their project.

Project Idea Note (PIN) : This is a short form of project description that provides such basic information about the project as type, size and location of the project; estimation of the anticipated total amount of Greenhouse Gas (GHG), reduction compared to the "business-as-usual" scenario, etc.

Perfluorocarbons or PFCs : One of the six GHG controlled by the Kyoto Protocol. PFCs are a by-product of aluminium smelting and are replacement for CFCs in manufacturing semiconductors.

Primary transaction : A transaction where the seller is the original owner (or issuer) of the carbon asset.

Pre-Certified Emission Reductions (pre-CERs) : A unit of GHG emission reductions that has been verified by an independent auditor but has not yet undergone the procedures and may not yet have met the requirements for registration, verification, certification and issuance of CERs or ERUs.

(R)

Reduced emissions from deforestation and degradation (REDD) : Reducing emissions from deforestation and [land] degradation. Mitigation action that seeks to preserve existing carbon stocks in forests (typically tropical rainforests), peatlands etc. The approach would be additional to project-based efforts such as the CDM. Issues to be solved are permanence, leakage, monitoring and baselines.

Regional Greenhouse Gas Initiative (RGGI) : A regional cap and trade system that currently includes Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont. In addition, the District of Columbia, Pennsylvania, the Eastern Canadian Provinces, and New Brunswick are observers in the process. The scheme initially covers CO2 emissions from power plants in the region. The scheme runs from 1 January 2009.

Removal Units (RMUs) : A unit relating to land use, land use change and forestry activities and is equal to one metric tonne of CO2 equivalent. RMUs cannot be banked for use in any subsequent commitment period, but can be converted into Assigned Amount Units (AAUs) within a national registry.

Registration: Process of registering emission reduction data with a third party registry. Registration is the formal acceptance by the Executive Board of a validated project activity as a project activity. Registration is the prerequisite for the verification, certification and issuance of credits related to that project activity.

Registry: Term used on the Trading Floor to indicate which emission reductions on offer have been registered with an independent emission reduction registry. Each registry applies its own criteria to determine what emissions merit registering. The registration process can vary widely from verification against rigorous measurement protocol to simply dating the registrant's, as yet, unverified claims.

Renewable Energy: Energy derived from non-fossil fuel resources (i.e. Wind, solar, hydro, bio fuels)

(S)

Secondary Transaction : A transaction where the seller is not the original owner (or issuer) of the carbon asset.

Secondary Market : The Secondary Market signifies the second transaction or trading of Certified Emissions Reductions (CERs) related to CDM projects or Emission Reduction Units (ERUs) from JI projects.

Sinks : The removal of greenhouse gases (GHGs) from the atmosphere through land management and forestry activities that may be subtracted from a country's allowable level of emissions.

Small scale CDM projects : There is a simplified process for small scale CDM projects that will generate less emissions reductions. They are defined as: renewable energy projects under 15 MW, energy efficiency projects that reduce energy consumption by up to 60 GWh per year; or project activities which emit less than 60 kilotonnes CO2 equivalent per year.

Small scale CDM projects , Subsidiary Body for Implementation (SBI) : Body advising and assisting the COP in matters relating to implementation of the UNFCCC and in preparing its decisions.

Subsidiary Body for Scientific and Technological Advice (SBSTA) : Body advising the COP on scientific and technical matters. It provides a link between the scientific information from experts and the policy-oriented needs of the COP. The SBSTA works closely with the Intergovernmental Panel on Climate Change (IPCC).

Sulfur Hexafloride or SF6 : One of six GHGs curbed under the Kyoto Protocol. It is mostly used in the heavy industry to insulate high-voltage equipment and assist in the manufacturing of cable-cooling systems.

(T)

Temporary Certified Emission Reductions (tCERs): see also Long-term Certified Emission Reductions (lCERs).
Credits issued for an afforestation or reforestation project activity under the CDM that expires at the end of the commitment period following the one during which it was issued. tCERs are issued for the net anthropogenic greenhouse gas removals by sinks achieved by the project activity since the project start date.

Terrestrial Sequestration : Removal carbon dioxide from the atmosphere or the prevention of carbon dioxide emissions from leaving terrestrial ecosystems. Sequestration can be enhanced in such ways as reducing the decomposition of organic matter; increase of photosynthetic carbon fixation of different types of vegetation; creating energy offsets using biomass for fuels.

Turbine: A machine for generating rotary mechanical power from the energy of a moving force (such as water, hot gas, Wind, or steam). Turbines convert the kinetic energy to mechanical energy through the principles of impulse and reaction, or a mixture of the two.

(U)

UNFCCC (United Nations Framework Convention on Climate Change), signed in 1992.

The UNFCCC was established 1992 at the Rio Earth Summit. It is the overall framework guiding the international climate negotiations. Its main objective is "stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic (man-made) interference with the climate system".

Umbrella group : An informal group of industrialised countries that do not belong to the EU but occasionally acts as an negotiating bloc on specific issues. The group was formed after the adoption of the Kyoto Protocol, and consists of Japan, USA, Canada, Australia, Norway, New Zealand, Iceland, the Russian Federation and Ukraine.

(V)

Voluntary market

Market for emission reductions purchased by organizations wishing to offset their carbon pre-registration CDM projects; 1 VER corresponds to 1 tonne of CO2e emission reductions. The sum of all transaction of carbon credits in non-compliance markets. The generation of non-compliance credits or voluntary offset credit supply comprises the reduction of GHG emissions for the purpose of selling them to voluntary end users and not to compliance buyers. Voluntary markets for emissions reductions include generation and transaction of carbon credits in non-compliance markets. The voluntary market permits the use of credits such as verified emission reductions (VERs), non-verified emission reductions (ERs) and prospective emission reductions (PERs), as well as the non-compliance use of CERs, ERUs, EUAs and other credits and allowances generated for the compliance market.

VCS (Voluntary Carbon Standard) : VCS is a certification standard for offset credits in the voluntary market. The standard provides for project-level quantification, monitoring, and reporting, validation, and verification of greenhouse gas emission reductions or removals. The VCS is an initiative of the World Business Council for Sustainable Development, International Emissions Trading Association, The Climate Group, and the World Economic Forum.

Voluntary standard : Any standard that aims to ensure the quality of carbon credits in the voluntary carbon market. It sets various requirements for project developers, such as third-party verification and measures to avoid double counting of carbon offsets, e.g. the use of registries.

Voluntary Offset Standard or VOS : VOS was launched in June 2007 and is based on the existing standards promoted by the UNFCCC, bringing voluntary market to the level of the regulated and standardized procedures of the compliance market. VOS endorses the existing gold standard methodology.

Voluntary Gold Standard : A voluntary standard, launched in May 2006 by WWF-UK and endorsed by 45 environmental NGOs. It is a simplified version of the CDM Gold Standard and is only available for projects in developing countries.

Verified Emission Reductions (VERs) : VERs are generated by carbon reduction projects that are assessed and verified by third party organisations rather than through the UNFCCC.

Validation : The process of independent evaluation of a CDM project by an designated operational entity according to requirements to CDM projects.

Verification : The process of formal confirmation by a recognized independent third party that inventories and carbon reduction claimed by participants in carbon trading schemes are in conformity with reality and established rules. Under the CDM, verification is performed by designated operational entities (DOEs).

(W)

Wind : Air in motion. From still (no Wind) to a breeze (slight Wind) to a gale (mighty Wind).

Wind Turbine: A turbine which converts the force of the Wind into.

PCC Glossary : A B C D E F G H I J K L M N O P R S T U V W