Puraction

GLOSSARIO
GLOSSARIO/GLOSSARY
DEFINITIONS

CDM
Clean Development Mechanism. A Kyoto Protocol initiative under which projects set up in developing countries to reduce greenhouse gas emissions generate tradable credits called CERs, the first step towards a global carbon market. These credits can be used by industrialised nations to offset carbon emissions at home and meet their Kyoto reduction targets. The projects include renewable energy generation, reforestation and clean fuels switching.

CER
Certified Emission Reduction. A credit generated under Kyoto's Clean Development Mechanism (CDM) for the reduction of emissions of greenhouse gases equal to one tonne of CO2-equivalent. They are designed to be used by industrialised countries to count toward their Kyoto targets but can also be used by EU companies and governments as offsets against their emissions under the EU Emissions Trading Scheme. See also Offsets.

Emissions Trading
One form of carbon price creating a market-based system for regulating the emission of greenhouse gases. The quantity of emissions is controlled and the price allowed to vary by the issuing of tradable emission permits. These rights to emit can be traded in a commercial market under an emissions trading scheme.

ERPA
Emissions Reduction Purchase Agreement. Contracts governing the sale of CER carbon credits from UN CDM and JI projects. Heavily used for forward sales of CERs not yet issued, in projects under development, as a means of project financing. The price of such primary CERs is discounted in ERPAs to reflect the risks of non-delivery.

ERU
Emission Reduction Unit. Tradable credits generated from activities to reduce greenhouse emissions in in industrialised countries, particularly those of the former Soviet-bloc, under the Kyoto Protocol's Joint Implementation (JI) mechanism.

EUA
European Union Allowances. Tradable emission credits from the EU Emissions Trading Scheme. Each allowance carries the right to emit one tonne of carbon dioxide.

JI
Joint Implementation. A Kyoto Protocol mechanism which allows developed countries, particularly those in transition to a market economy, to host carbon-reducing projects funded by another developed country. The arrangement sees the credits generated, called ERUs, go to the investor country while the emission allowances (AAUs) of the host country are reduced by the same amount.

NAPs
National Allocation Plans. These set out the overall emissions cap for countries in phases I and II of the EU Emissions Trading Scheme up to 2012, and the emissions allowances that each sector and individual installation within each country receives.

PDD
Project Design Document. The official application drawn up by an entity applying for project approval under the Clean Development Mechanism (CDM). PDDs must be validated by an independent third party, then approved and registered by the CDM Executive Board before a project qualifies as a CER carbon credit earner.

PIN
Project Idea Note means a preliminary description of a Project stating all its relevant features.

Registration Registration or "Registered" means the formal accept
ance by the Executive Board of a Project as a CDM project activity.

Share of Proceeds
Share of Proceeds means any CERs deducted or other fees charged by the CDM Registry administrator upon issuance of CERs in accordance with the International Rules, to cover administrative expenses (SOP-Admin) and to assist in meeting costs of adaptation (SOP - Adaptation) in accordance with the use of the term in the modalities and procedures for the CDM.

tCO2e - MtCO2e
Tonnes of carbon dioxide equivalent - millions of tonnes of carbon dioxide equivalent. This is the metric measurement unit for greenhouse emissions. The global warming impact of all greenhouse gases is measured in terms of equivalency to the impact of carbon dioxide (CO2). For example, one million tonnes of emitted methane, a far more potent greenhouse gas than carbon dioxide, is measured as 23 million tonnes of CO2-equivalent, or 23 MtCO2e.

UNFCCC
United Nations Framework Convention on Climate Change or "UNFCCC" means the United Nations Framework Convention on Climate Change adopted in New York on May 9, 1992.

Validation
Validation, "Validate" and "Validated" each means the process of independent evaluation of the Project by an Operational Entity against the requirements of the CDM in accordance with the International UNFCCC/Kyoto Protocol Rules.

Verification
Verification, "Verify" and "Verified" each means the periodic independent review and ex post determination by an Operational Entity of GHG Reductions monitored in accordance with the Monitoring Plan that have occurred during the relevant period as a result of the Project being carried out in accordance with the International UNFCCC/Kyoto Protocol Rules.

VERs
Verified Emission Reductions. Tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organizations and individuals wanting to offset their own emissions.

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