Additionality:
The reduction in Greenhouse Gas
emissions by sources or removals by sinks that is additional to any
that would occur in absence of the CDM Project activity. The
Marrakesh Accords state that a project activity is additional if
anthropogenic emissions of Greenhouse Gases are reduced below those
that would have occurred in the absence of the CDM project.
Afforestation:
The direct human-induced conversion of land that has not
been forested for a period of at least 50 years to forested land
through planting, seeding and/or the human-induced promotion of
natural seed sources.
Allocation Statement:
The statement which may be provided by Project Participants to the
CDM Executive Board .
Allowance:
Kyoto Protocol: Amount of emissions that a country may emit in the
commitment period (see also assigned amount, credits, cap, target).
EU Emissions trading directive: one allowance represents the
tradable right to emit one tonne of CO2-eq per year by a
participant of the emissions trading system.
Annex I:
Kyoto Protocol: For the purpose of differentiating commitments, the
Convention contains an Annex, that lists the countries that are
considered developed countries (OECD members and countries in
Eastern Europe and the (former) Soviet Union), the so-called ‘Annex
I countries'. For an overview of Annex I countries see Annex B of
this guide.
EU emissions trading Directive: Annex I to the Directive contains a
list of categories of activities that are covered by the Directive.
Annex B Countries:
Those countries listed in Annex B to the Kyoto Protocol, being a
list of Annex I Countries that have committed to a quantitative
emission reduction target under Article 3.1 of the Kyoto Protocol.
Annex I Countries:
Countries that have committed to emission restraints under Article
4.2 (a) and (b) of the UNFCCC as listed in Annex I of the UNFCCC
(generally developed countries and countries undergoing the process
of transition to a market economy).
Assigned Amount:
Amount of Greenhouse Gases emissions that an Annex
B Party can emit during the Commitment Period taking into account
the quantified emission limitations reduction commitments of Annex B
of the Kyoto Protocol.
AAU Assigned Amount Unit:
A unit issued pursuant to the relevant provisions on registries in
decision - CPM.1 of the Marrakesh Accords and is equal to one metric
ton of carbon dioxide equivalent.
Baseline:
The scenario that reasonably represents the anthropogenic emissions
by sources of Greenhouse Gases that would occur in the absence of
the proposed project activity.
Baseline Approach:
A baseline approach is the basis for a baseline methodology. The
Executive Board agreed that the three approaches identified in
sub-paragraphs 48 (a) to (c) of the CDM modalities and procedures be
the only ones applicable to CDM project activities. They are:
- Existing actual or historical emissions, as applicable; or
- Emissions from a technology that represents an economically
attractive course of action, taking into account barriers to
investment; or
- The average emissions of similar project activities undertaken in
the previous five years, in similar social, economic, environmental
and technological circumstances, and whose performance is among the
top 20 per cent of their category.
Baseline Methodology:
A methodology is an application of an approach as defined in
paragraph 48 of the CDM modalities and procedures, to an individual
project activity, reflecting aspects such as sector and region. No
methodology is excluded a priori so that project participants have
the opportunity to propose a methodology. In considering paragraph
48, the Executive Board agreed that, in the two cases below, the
following applies:
(a) Case of a new methodology: In developing a baseline methodology,
the first step is to identify the most appropriate approach for the
project activity and then an applicable methodology;
(b) Case of an approved methodology: In opting for an approved
methodology, project participants have implicitly chosen an
approach.
CDM:
Clean Development Mechanism - flexible mechanism under Article 12 of
the Kyoto Protocol with the purpose to (1) assist non-Annex I
Parties in achieving sustainable development; (2) contribute to the
ultimate objective of the UNFCCC; and (3) assist Parties included in
Annex I achieve compliance with their quantified emission limitation
and reduction commitments.
CDM Executive Board:
The formal governance body established under Article 12 to oversee
the implementation and administration of the CDM, under the
authority and guidance of the COP/MOP.
CDM Project:
An emission reduction project which is intended to be registered
with the CDM Executive Board and ultimately realize the delivery of
CERs.
CDM Registry:
Standard electronic database to be established and maintained by the
CDM Executive Board which will contain common data elements relevant
to the issuance, holding, transfer and acquisition of CERs.
CER Certified Emission Reduction:
A unit issued under the CDM mechanism pursuant to Article 12 of the
Kyoto Protocol and all other relevant requirements and which is
equal to one metric ton of CO2e.
Certification:
The written assurance by the DOE to confirm that, during a specified
time period, a CDM Project activity achieved the reductions in
Greenhouse Gas emissions as verified.
COP:
Conference of Parties to the UNFCCC, held on a
regular basis to establish the rules to implement the UNFCCC.
COP/MOP:
Conference of the Parties serving as the meeting to the Parties to
the Kyoto Protocol, being the Kyoto Protocol's supreme body. The
sessions of the COP and COP/MOP will be held during the same period.
Crediting Period:
The period for which the CDM Project can generate CERs.
Crediting period - fixed (also fixed crediting period):
"Fixed Crediting Period" is one of two options for determining the
length of a crediting period. In the case of this option, the length
and starting date of the period is determined once for a project
activity with no possibility of renewal or extension once the
project activity has been registered. The length of the period can
be a maximum of ten years for a proposed CDM project activity.
(paragraph 49 (b) of CDM modalities and procedures).
Crediting period - renewable (also renewable crediting
period):
"Renewable crediting period" is one of two options for determining
the length of a crediting period. In the case of this option, a
single crediting period may be of a maximum of seven years. The
crediting period may be renewed at most two times (maximum 21
years), provided that, for each renewal, a designated operational
entity determines that the original project baseline is still valid
or has been updated taking account of new data, where applicable,
and informs the Executive Board accordingly (paragraph 49 (a) of the
CDM modalities and procedures). The starting date and length of the
first crediting period has to be determined before registration.
DNA Designated National Authority:
The national authority for CDM designated by Party to the Protocol.
DOE Designated Operational Entity:
An independent legal entity accredited by CDM Executive Board that
can validate proposed CDM Projects and verify and certify Greenhouse
Gas emission reductions.
ERU Emission Reduction Unit:
A unit issued under the JI mechanism pursuant to Article 6 and all
other relevant Kyoto Protocol requirements and which is equal to one
metric ton of carbon dioxide equivalent.
ERPA:
Emission Reduction Purchase Agreement
First Commitment Period:
The period between 2008-2012 during which Annex I countries are
required to reduce their emissions of Greenhouse Gases to the levels
established in the Kyoto Protocol.
Greenhouse Gas:
One or more of the six gases listed in Annex A to the Kyoto Protocol
that trap heat when released into the atmosphere, being carbon
dioxide (CO2), methane (CH4), nitrous oxide (N2O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulfur
hexafluoride (SF6). They occur through natural and human-induced
activities.
Host Country:
The non-Annex I country in which a CDM Project is based.
JI Joint Implementation Mechanism:
Flexible mechanism under Article 6 of the Kyoto Protocol with the
purposes (1) to assist Annex I Parties in achieving sustainable
development and (2) to contribute to the ultimate objective to the
UNFCCC and (3) to assist Annex I Parties to achieving compliance
with their quantified emission limitation and reduction commitments.
Kyoto Protocol:
The Protocol to the UNFCCC signed at the third COP meeting,
establishing binding Annex I Greenhouse Gas emission reduction
targets of 5.2% below 1990 levels by 2008-2012. For the Kyoto
Protocol to enter into force, it must be ratified by 55 parties
representing 55% of industrial nations' Greenhouse Gas emissions.
Leakage:
The net change of anthropogenic emissions by sources of Greenhouse
Gases that occurs outside the project boundary and is measurable and
attributable to the DM Project activity.
Letter of Approval:
A letter issued by the Designated National Authority of the Host
Country to a CDM Project confirming that the project, as proposed,
will assist the Host Country to achieve its goals of sustainable
development.
LULUCF:
Land Use, Land-Use Change and Forestry as defined under the Kyoto
Protocol and Marrakesh Accords particularly decision 11/CP.7.
Marrakesh Accords:
Decisions 2/CP.7 through to Decision 24/CP.7 (inclusive) of the
seventh session of the COP/MOP.
Monitoring:
Estimation or measurement of the actual emissions within the project
boundary during the crediting period.
Monitoring plan:
Plan that describes the collection and archiving of all relevant
data necessary for assessing the level of greenhouse gas emissions
from a JI/CDM project during the crediting period.
New entrants:
Any installations carrying out one or more activities listed in
Annex I of the EU emissions trading Directive which obtains (an
update of ) a greenhouse gas emissions permit after the national
allocation plan has been established.
Non-Annex I Countries:
Countries which are not listed in Annex I of the
UNFCCC (generally, developing and least developed countries).
Opt-in:
Unilateral inclusion of additional activities (and possibly gases)
in the EU emissions trading system.
Opt-out:
Temporary exclusion of certain installations and activities in
2005-2007 trial period of the EU emissions trading system to be
decided by Member States.
ODA:
Official Development Assistance - Annually disbursed
official bilateral government assistance from Annex I to non-Annex I
countries.
Operational lifetime:
It is defined as the period during which the CDM project activity is
in operation. No crediting period shall end after the end of the
operational lifetime (calculated as from starting date).
Organization Identifier:
The Party for which an account within the CDM Registry is
maintained, using the two letter country code defined by the
International Organization for Standardization (ISO 3166).
Party:
A country that has ratified the Kyoto Protocol.
Permit:
A greenhouse gas emissions permit represents the non-tradable
license to emit greenhouse gas emissions, without which participants
in the EU emissions trading system are not allowed to emit
greenhouse gases.
Pooling:
Forming of a pool of similar activities, in which allowances can be
re-allocated among the pool members and one common trustee has the
responsibility that the pool attains enough allowances for its
combined emissions.
Project Boundary:
The notional boundaries surrounding an actual or proposed CDM
Project within which Greenhouse Gas emission impacts and effects are
considered and quantified.
Project Design Document:
The document to be prepared and submitted by Project Participants to
an accredited DOE for validation of a proposed project activity.
Project Participants:
The legal entity (both public and private entities) that develop and
implement CDM Project activities.
PCF:
World Bank's Prototype Carbon Fund.
Registration:
The formal acceptance by the CDM Executive Board of a validated
project as a CDM Project. Registration is the prerequisite for
verification, certification and issuance of CERs related to that
project.
Reforestation:
The direct human-induced conversion of non-forested land to forested
land through planting, seeding and/or the human-induced promotion of
natural seed sources, on land that was forested but that has been
converted to non-forested land. For the First Commitment Period,
reforestation activities will be limited to reforestation occurring
on those lands that did not contain forest on 31 December 1989.
RMU:
A Removal Unit (from carbon sequestration by ‘sink' activities)
issued pursuant to the relevant provisions on registries in decision
- CMP 1, equal to one metric ton of CO2e.
SBSTA:
The Subsidiary Body for Scientific and Technological Advice.
Sequestration Removal of carbon from the atmosphere by carbon
‘sinks', such as forests.
Sinks:
Biological components of the carbon cycle that can
sequester CO2, such as forests, soils, oceans, etc.
Activities that result in a reduction of the uptake of CO2
by sinks (e.g. deforestation) have to be included in national
emission inventories. Activities that enhance the biological
sequestration of CO2, e.g. afforrestation can be part of
JI/CDM projects (under different rules).
Stakeholders:
Stakeholders mean the public, including individuals, groups
or communities affected, or likely to be affected, by the proposed
CDM project activity or actions leading to the implementation of
such an activity.
Transaction Log:
Under the Marrakesh Accords, a transaction log will be established
by the secretariat to the UNFCCC to verify the validity of all
transactions involving Kyoto Protocol rights including CERs within
or between registries (including between a national registry and the
CDM registry). The log will cover the issuance, transfer,
acquisition, cancellation, retirement or carryover into the next
commitment period of any Kyoto Protocol rights.
UNFCCC:
United Nations Framework Convention on Climate Change,
signed at the ‘Earth Summit' in Rio de Janeiro in May 1992.
Unilateral CDM:
A Clean Development Mechanism project developed and implemented by a
developing country (non-Annex I) party and/or entity.
Validation:
The process of independent evaluation of a project activity
by a designated DOE against the requirements of the CDM as set out
in the Marrakesh Accords on Article 12 and on the basis of the
Project Design Document.
Verification:
The periodic independent review and ex post determination
by the designated DOE of the monitored reductions in anthropogenic
emissions by sources of Greenhouse Gases that have occurred as a
result of a registered CDM Project activity during the verification
period.
Verified Emission Reduction:
A unit of GHG emission reductions that has been verified by an
independent auditor (such as DOE), but that has not yet undergone
the procedures and may not yet have met the requirements for
verification, certification and issuance of CERs or ERUs under the
Kyoto Protocol. A VER corresponds to 1 tonne of CO2e emission
reductions.
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