Operational Entity |
The operational entity is the independent body which validates a greenhouse gas reduction project and recommends it for registration by the CDM Executive Board. It also verifies the amount of credits the project generates, prior to their issue by the Board. Operational entities are accredited by the CDM Executive Board. |
Party |
A party is a country which has adopted the United Nations Framework Convention on Climate Change. |
Permit |
In relation to the EU ETS, a permit is required for each installation that is included in the EU ETS. The permit identifies the EU allowances that the site will receive. An installation will need to apply for a permit from the appropriate regulator, in a similar way to applying for other emissions permits. Anyone operating without a permit once the scheme has started will be subject to a fine. |
Prompt Start (CDM) |
Clean Development Mechanism projects can generate credits from 1 Jan 2000 if they meet all the criteria and have already begun. |
Ratification |
After signing the Convention or the Protocol, a country must ratify it, through its parliament or other legislature. The instrument of ratification must be deposited with the depository (in this case the UN Secretary-General). |
Registry |
A registry is essentially an account that holds all permits, allowances and other instruments available for compliance under Kyoto. Registries may be held at a number of levels (national or international), with national Governments holding national registries that will be used to hold the national compliance account instruments. |
Second Track Joint Implementation Projects |
Countries which are out of compliance with Articles 5 and 7 of the Kyoto Protocol will be able to host Joint Implementation projects provided the emission reductions are verified in a similar way to those from Clean Development Mechanism activities. To use the second track, countries will only have to comply with 4 of the 6 eligibility requirements. |
Sequestration |
Sequestration is the process of absorbing carbon dioxide from the air through photosynthesis. In this way, carbon is stored in plants. |
Sinks |
Sinks, or carbon sinks, are the ecosystems, principally forests and oceans, which remove carbon dioxide from the atmosphere by absorbing and storing it. |
Small scale projects |
There is a simplified process for small scale CDM projects which will generate less emissions reductions. They are defined as: renewable energy projects under 15 MW; energy efficiency projects which reduce energy consumption by up to 15 GWh per year; or activities which emit less than 15 kilotonnes CO2 equivalent per year. |
Supplementarity |
Under the rules of the Kyoto Protocol, the use of the 3 Kyoto mechanisms must be supplemental or additional to domestic action, with domestic action constituting a significant amount of the total country's effort to meet its target. |
Sustainable Development |
Sustainable development is development that meets the needs of current generations without reducing the ability of future generations to meet their needs. The concept of sustainable development integrates the three conventionally separate domains of economic, environmental and social policy. CDM projects have to contribute to Sustainable Development in the host country. |
Transferability |
There are no restrictions on the transferability of Assigned Amount Units, Emission Reduction Units, Certified Emission Units, and Removal Units to assist a country to achieve its emissions targets, within a set commitment period. |
Umbrella Group countries |
The Umbrella Group countries are a group of countries who negotiate together with regard to international agreements on greenhouse gas reductions. The group comprises Russia, Japan, Australia, Canada, New Zealand, Norway, Iceland, Ukraine and USA. |
Unilateral CDM |
This is when a non-Annex 1, or an organisation within a developing country, undertakes a CDM project without using a Annex I country as a partner. In this way the host country or entity retains all the credits and can subsequently trade them. |
Validation |
Validation of a project is confirmation of the baseline assumptions and calculations, its eligibility against defined criteria and its overall acceptability to stakeholders. |
Verification |
JI and CDM projects need to be monitored to determine the resulting emissions reductions. In the case of CDM projects, the monitoring reports are verified to confirm the amount of CERs which should be issued |
