Glossary

Annex 1

Developed countries with Emission Reduction commitments, as defined in the Kyoto Protocol

 

Carbon credits

Generic term for the greenhouse gas Emission Reduction benefits arising from project-level activities

 

CDM

Clean Development Mechanism – The provision of the Kyoto Protocol that governs project-level carbon credit transactions between developed and developing countries

 

CDM EB

Clean Development Mechanism Executive Board, supervises the CDM under the authority and guidance of the Conference of Parties serving as the Meeting of the Parties to the Kyoto Protocol (‘CMP’) and is fully accountable to the CMP

 

CER

Certified Emission Reduction – carbon credits created by Clean Development Mechanism projects; One CER corresponds to one tonne of CO2e Emission Reductions

 

Compliance market

Market for emission reductions purchased by organisations with obligations to reduce under Kyoto

 

CO2e

Carbon dioxide equivalent – the unit used in the Kyoto Protocol (essentially using CO2’s global warming potential as a unit to define other gases’ global warming potential)

 

DOE

Designated Operational Entity is either a domestic legal entity or an international organisation accredited and designated by the CDM Executive Board and the Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol. A Designated Operational Entity has two key functions, to validate and subsequently request registration of a proposed CDM project and to verify Emission Reductions from a registered CDM project activity.  ClimateCare generally uses DOEs for the verification and validation of all VER projects.

 

Emission Reductions

Units ascribed to the reduction of greenhouse gas related emissions

 

ERPA

Emission Reduction Purchase Agreement

 

ERUs

Emission Reduction Units – The output of Joint Implementation projects. One ERU corresponds to one tonne of CO2e Emission Reductions

 

EUA

European Allowance – allowance unit issued to installations covered by the EU ETS

 

EU ETS

European Union Emissions Trading Scheme – a market-based ‘cap and trade’ system for GHGs adopted by European Union member states in January 2005 in advance of their obligations under the Kyoto Protocol

 

GHG

Greenhouse Gases – gases such as CO2 that trap heat in the atmosphere.   Those included under the Kyoto Protocol are: carbon dioxide, methane, nitrous oxide, sulphur hexafluoride and two groups of gases: hydrofluorocarbons and perfluorocarbons.

 

IPCC

Intergovernmental Panel on Climate Change

 

JI

Joint Implementation – The provision of the Kyoto Protocol that governs project-level carbon credit transactions between entities located in Annex 1 countries

 

Kyoto Protocol

International agreement under which industrialised countries commit to reduce GHG emissions

 

non-Annex 1

Developing countries without Emission Reduction commitments, as defined in the Kyoto Protocol

 

PDD

Project Design Document

 

tCO2e

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

 

UNFCCC

United Nations Framework Convention on Climate Change, signed in 1992

 

VER

Verified Emission Reduction – emission reductions created by projects which have
been verified outside of the Kyoto Protocol – including credits from pre-registration CDM projects;
VERs are reductions from greenhouse gas emission reduction projects that have prevented or removed the equivalent of one metric tonne of carbon dioxide. Just as emissions from every corner of the globe add to the increasing concentration of greenhouse gases in the atmosphere, so emissions reduction projects are equally beneficial regardless of their location. As long as the reduction is real, verifiable and permanent, the positive impact on the environment will be the same.

Greenhouse Gas (GHG) emission reduction projects create VERs by displacing more fossil fuel intensive activities or by reducing the direct release of GHGs into the atmosphere. For example, a smallholder in India can reduce emissions, generating VERs by using a human-powered pump instead of paying to rent a dirty polluting diesel pump to bring the water to the surface from subterranean aquifers.  Not only is the action of replacing the diesel pump with the treadle pump helping reduce CO2 emissions, it saves money in the long run, improves crop yields, thus improving the lives of the farmer and her family.
VERs can be used to cost effectively balance your carbon footprint, as they can offset the emissions that you currently cannot reduce by internal abatement measures alone. VERs are the main type of emission reduction used by companies wishing to offset their unavoidable emissions.

 

VERPA

Verified Emission Reduction Purchase Agreement

 

Voluntary market

Market for emission reductions purchased by organisations wishing to offset their carbon footprint on a voluntary basis