Jargon Buster
Activities associated with global warming and climate change are growing quickly and so has the jargon associated with growth.
If you come across a term that is not included here, please e- mail us at info@reducemyfootprint.travel
Additionality
This term is used to identify carbon (and other climate) benefits from projects that would not have been implemented without the funding linked to the carbon (climate) benefit. Standards for carbon and climate credits use criteria such as:
- financial viability without carbon funding
- Is the project common practice i.e. "business as usual"
- any legislation relating to the project
Business as usual
This term is used to distinguish projects that would reduce CO2 emissions in the normal course of doing business - basically they are not additional. Of course, it applies to other areas of business as well.
Carbon Funding
Is where an investor pays a project developer in return for ownership of the emissions reductions achieved by that project over a certain time period. Funding may be provided as capital at the start of a project, as income over its life or as a mixture of the two.
Carbon neutral
Being carbon neutral involves estimating your emissions of carbon dioxide (or of the carbon involved). After taking steps to reduce them where possible, the remaining emissions are balanced for example by purchasing a carbon offset: which pays for "green" projects such as solar and wind power, and planting of trees or preservation of threatened forest. In fact it is virtually impossible to be exactly carbon neutral because of the uncertain nature of many estimations and of the benefits from some projects. While estimations are improving it is far from an exact science.
The Carbon Trust
This is an independent company funded by Government. Its role is to help the UK move to a low carbon economy by helping business and the public sector reduce carbon emissions now and capture the commercial opportunities of low carbon technologies.
Certified Emissions Reductions (CERs)
CERs are carbon credits issued by the CDM Executive Board once a project has been validated and the emissions reductions themselves have been verified. They can then be used by governments towards reaching their Kyoto targets or by companies to trade in the EU Emissions Trading Scheme. The purchasing company surrenders the CERs to government as part of the company's emissions target.
Clean Development Mechanism (CDM)
The CDM allows Annex 1 countries to make emissions reductions overseas in non Kyoto countries and count those reductions towards their own legal commitments. A CDM project is issued with Certified Emissions Reductions, which may then be traded. These CERs can be used towards Kyoto targets.Back to Top
Accounts for the majority of man's impact on the climate that is, it is the main greenhouse gas. It is a normal component of the earth's atmosphere. Globally averaged concentrations have risen from about 280 parts per million by volume before the industrial revolution to about 380 today. CO2 is a part the metabolism of plants and animals and is chemically stable with a long lifetime. There have been cycles in CO2 concentration over the history of the earth but this is the first associated with man's activity.
Emissions trading (or cap and trade)
is a system used to control pollution by providing economic incentives (and penalties) for achieving reductions (or increases) in the emissions of pollutants. A central authority, normally a government agency, sets a limit or cap on the amount of a pollutant that can be emitted. Organizations such as companies that emit the pollutant are given credits or allowances which permit the emissions of a defined amount of the pollutant. The total amount of allowances cannot exceed the cap, limiting total emissions to that level. Companies that emit beyond their overall allowance must buy allowances or credits from those that emit less than their overall allowance. In effect the buyer is paying for polluting while the seller is being rewarded. Clearly, the more organizations that buy credits, the higher the price, making the system a cost effective way to achieve reductions in pollutant emissions. Current interest is centred on the European Union Emissions Trading Scheme (EU ETS).
The European Union Emission Trading Scheme (EU ETS)
This is the largest multi-national greenhouse gas ETS in the world. Each participating country agrees a national Allocation Plan approved by the European Commission, including caps on greenhouse gas emissions from power plants and other large point sources. In its first year after opening at the beginning of 2005, 362 million tones of CO2 were traded on the market for a sum of 7.2 billion euros. In its first phase from 2005-2007 the EU ETS covers energy intensive activities. The second phase (2008-2012) will cover all greenhouse gases, not only CO2 CDM and JI credits are expected to be introduced in the second phase through a "Linking" Directive. The European Commission is also intending to include aviation in the EU ETS.
EUAs are credits in the EU Emissions Trading Scheme, allowances distributed by Government to those companies participating in the scheme. Ultimately, EUAs are formally retired from the relevant registry as evidence of a company's performance within the EU ETS. Prior to that point, they are a freely marketable commodity.
In rainy tropical reforestation, each tree removes about 22 kg (about 50 pounds) of carbon dioxide from the atmosphere each year: 40 years after planting, the average tropical tree will have sequestered about 2000 pounds of carbon dioxide. In regard to carbon-offset tree-planting projects, there is uncertainty about the science and accounting of sequestration, and there has been criticism from some non-governmental organisations and from community groups that could be adversely affected by certain projects. As forests sequester (i.e. store) carbon, forestry projects can mitigate or offset a portion of CO2 emissions from the burning of fossil fuels or other CO2-emitting activities. Moreover, an estimated 20-25% of total GHG emissions result from deforestation, when carbon stored in plants and soils is released into the atmosphere as a result of burning or decomposition. Therefore, an important strategy for addressing climate change involves restoration of forests and the protection of forests that are under threat.
Global Warming Potential (GWP)
GWP is used to compare the abilities of different greenhouse gases to trap heat in the atmosphere. GWPs are based on the radiative efficiency (heat-absorbing ability) of each gas relative to that of carbon dioxide (CO2), as well as the decay rate of each gas (the amount removed from the atmosphere over a given number of years) relative to that of CO2. GWP provides a method for converting emissions of various gases into a common measure, which allows climate analysts to aggregate the radiative impacts of various greenhouse gases into a uniform measure denominated in carbon or carbon dioxide equivalents.
This is awarded to CDM and VER projects that have significant sustainable development credentials. The Gold Standard was set up by a group of environmental NGOs who wanted to encourage developers to run high quality projects.
Greenhouse gases
(GHGs) are gases in the atmosphere that contribute to the greenhouse effect. Although uncertainty still exists as to how exactly the climate responds to these gases, global temperatures are rising. Some greenhouse gases occur naturally in the atmosphere, while others result form human activity. Naturally occurring GHGs include water vapour, carbon dioxide, methane, nitrous oxide and ozone. Some human activities add to the levels of these gases. Water vapour causes some 35-70% of the "natural" greenhouse effect, carbon dioxide some 9-25%; methane about 4-9% and ozone 3-7%. It is not really possible to determine the precise contribution from each gas because the various influences of the gases are not additive.
is adding to the greenhouse effect through activities including:
- Burning of fossil fuels producing CO2 - the main contribution from man to the greenhouse effect
- Livestock farming and rice paddies, pipeline leaks and landfill emissions of methane
- Use of chlorofluorocarbon compounds (CFCs) in refrigeration systems and CFCs and halons in fire suppression systems
- Deforestation
In essence Join Implementation (JI) is similar to the CDM approach except the project is carried out in another Annex 1 country that has a target under the Kyoto Protocol.
Following the original Earth Summit in Rio de Janeiro in 1992 the United Nations Framework Convention on Climate Change (UNFCCC) was introduced and has now been ratified by over 140 countries. In 1997, at the fourth Conference of the Parties to the Convention, (often referred to as "COP 4"), the Kyoto Protocol was signed. This laid out the targets for the industrialised countries to reduce their greenhouse gas emissions. The Protocol has now come into force after ratification by the relevant proportion of UN member States.
Radiative Forcing is the change in radiation received at the surface of the earth due to an emission of greenhouse gas(es). The Radiative Forcing Index relates the effect of other individual greenhouse gases to that of CO2. RFI is used in relation to aviation but there is still limited knowledge about the relative effect of other aircraft emissions than CO2.
Records of carbon credits generated are maintained by each project through its verifiers. This may also be a central system for CERs, through the processes United Nations Framework Convention on Climate Change, and for the European Emissions trading Scheme. As credits are sold or otherwise used for offsets the relevant number of credits is removed from the appropriate registry.
Renewable Energy
This is energy which can be replenished at the same rate as it is used. Renewable energy sources contribute some 35% of human energy use world-wide with the prime source being solar radiation- sunlight. Man's traditional uses of wind, water, and solar power are widespread in developed and developing countries, but the mass production of electricity using renewable energy sources has become popular only recently, reflecting the major threat of climate change.
This commenced in 2002 and will run until 2007. It was the first cross-industry, national greenhouse gas emissions trading scheme. Entrants are voluntary and accept absolute caps on greenhouse gas emissions in return for incentive payments. An incentive auction was run in March 2002 where the government distributed a total of £215 million to successful bidders. Companies subject to targets under the Climate Change Levy (CCL) may trade in the ETS in order to meet their obligations, with a gateway between the two.
UN Framework Convention on Climate Change
This is an international enviornmental treaty produced at the United Nations Conference on Environment and Development in Rio de Janeiro in 1992. The treaty is aimed at reducing emissions of greenhouse gases in order to combat global warming. The original treaty set no mandatory limits on emissions for individual countries - it is considered non-binding. It did contain provision for updates that could set mandatory limits. The principal update is the Kyoto Protocol (see above) which has become better known than the UNFCCC itself. Countries are divided as follows.
Annex I Parties (countries) include the industrialized countries that were members of the OECD (Organisation for Economic Co-operation and Development) in 1992, plus countries with economies in transition (the EIT Parties), including the Russian Federation, the Baltic States, and several Central and Eastern European States. These are the industrialised countries that have targets to reach under the Kyoto Protocol.
Annex II These parties consist of the OECD members of Annex I, but not the EIT Parties. They are required to provide financial resources to enable developing countries to undertake emissions reduction activities under the Convention and to help them adapt to adverse effects of climate change. In addition, they have to "take all practicable steps" to promote the development and transfer of environmentally friendly technologies to EIT Parties and developing countries. Funding provided by Annex II Parties is channeled largely through the Convention's financial mechanism.
Non-Annex I Parties These are mostly developing countries. Certain groups of developing countries are recognized by the Convention as being especially vulnerable to the adverse impacts of climate change, including countries with low-lying coastal areas and those prone to desertification and drought. Others (such as countries that rely heavily on income from fossil fuel production and commerce) feel more vulnerable to the potential economic impacts of climate change response measures. The Convention emphasizes activities that promise to answer the special needs and concerns of these vulnerable countries, such as investment, insurance and technology transfer.
Countries classified as LDCs by the United Nations, are given special consideration under the Convention on account of their limited capacity to respond to climate change and adapt to its adverse effects. Parties are urged to take full account of the special situation of LDCs when considering funding and technology-transfer activities.
Verified Emission Reductions (VERs)
This is the term used to describe emission reductions verified independently of any governmental regulatory scheme. VERs are sometimes known as Voluntary Emissions reductions, but this is misleading as regulated reductions can also be used in a voluntary fashion.
This is used to describe the market where offsets are made available and purchased outside of regulatory requirements, such as meeting national or company targets under the Kyoto Protocol and the European Emissions Trading Scheme. Individuals and organizations can purchase offsets independent of such regulated requirements. These can be retained for investment or other purposes or removed from the relevant registry.
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