Kyoto Protocol Terms A-D

Kyoto Protocol terms A-D: A B C D

Accreditation

Project validators and credit verifiers will need to be accredited if their professional services are to be used by project developers to secure Kyoto compliant carbon credits.

Adaptation fund

A fund generated by charging an adaptation levy on Clean Development Mechanism projects. The purpose of the fund is to help particularly vulnerable developing countries meet the costs of adapting to a changing climate.

Adaptation levy

A levy is applied to all Clean Development Mechanism projects except those in “least developed countries” (LDCs), to create the Adaptation Fund. It amounts to 2% of the certificates earned by a project activity. The fund will be used to assist LDCs to adapt to climate change.

Additionality

For Joint Implementation and Clean Development Mechanism projects, emissions reductions must be additional to those that would otherwise occur. Additionality is when there is a positive difference between the emissions that occur in the baseline scenario, and the emissions associated with a proposed project.

Environmental Additionality

Environmental additionality is demonstrated if a project results in reductions in the emissions of greenhouse gases, compared to a "business-as-usual" or baseline case.

Financial Additionality

Financial additionality is demonstrated if a project calls upon additional funds, rather than diverting funds already destined for the host country in the form of Official Development Assistance.

Investment Additionality

Investment additionality is demonstrated if the project would not be commercially viable without the revenue the project generates in terms of emission reduction credits. Whilst initially proposed as one of the project eligibility criteria, this is no longer a requirement.

Technological Additionality

The technologies employed in the project should be the best available technology for the host nation.

Allowance

An allowed, possibly tradable, right-to-emit in a country that has taken on an emissions cap under the Kyoto Protocol. The units for allowances are tonnes of CO₂ equivalent.

Annex I countries

Annex I is an Annex in the United Nations Framework Convention on Climate Change. The Annex I countries are those which committed themselves as a group to reducing their emissions of the six greenhouses gases by at least 5% below 1990 levels over the period between 2008 and 2012. Specific targets vary from country to country.

Annex B countries

Annex B countries are defined in Annex B of the Kyoto Protocol. These are industrialised countries with greenhouse gas emissions limitations (which may nevertheless be a net increase in emissions) or a reduction commitment. The annex identifies those countries currently making a transition to a market economy. The only difference between the Annex I and Annex B countries, is that Turkey and Belarus are not Annex B countries.

Non-Annex I countries

Annex I is an Annex in the United Nations Framework Convention on Climate Change listing those countries which are signatories to the Convention and committed to emission reductions. The Non-Annex I countries are developing countries, and they have no emission reduction targets.

Article 6 projects

Article 6 is one of the articles in the Kyoto Protocol. It defines Joint Implementation projects and eligibility criteria.

Article 12 projects

Article 12 is one of the articles in the Kyoto Protocol. It defines Clean Development Mechanism projects and eligibility criteria.

Assigned amount

The assigned amount is the emission allowance assigned under the Kyoto Protocol for the man-made emissions of greenhouse gases which an industrialised country (Annex I party) is permitted to emit over a certain commitment period.

Banking

A maximum limit of 2.5% of a country's assigned amount (target) has been set for banking credits for future use in the next commitment period, for both Emission Reduction Units from Joint Implementation projects and Certified Emission Reductions from Clean Development Mechanism projects. Assigned Amount Units from emissions trading can be carried forward without restriction, whereas Removal Units assigned to removal of CO₂ by sinks cannot be banked at all.

Baselines

The baseline is the emission of greenhouse gases that would occur without the intended project activity or policy intervention. It therefore represents the emissions associated with a business-as-usual scenario. The additional emission reductions that a project contributes can only be determined once the baseline has been assessed. Various approaches can be taken to determine the baseline, but the approach must be justified as part of the project validation process.

Bilateral CDM

A bilateral CDM project is the standard form of the CDM project, involving an investor, a developed country and a host developing country.

Bubble

A bubble is when emissions are grouped together for different countries, and the target applies to the group.

Capacity building

This is the process of ensuring that those people in a country have the necessary skills and knowledge to understand the Kyoto Protocol and enable its implementation (i.e. through hosting projects).

Carbon sinks

Carbon sinks are the ecosystems, principally forests and oceans, which remove carbon dioxide from the atmosphere by absorbing and storing it, thereby offsetting carbon dioxide emissions.

Clean Development Mechanism

The Clean Development Mechanism is when a project undertaken in a developing country generates reductions in greenhouse gas emissions, it contributes to the host country's sustainable development, and it accrues emission reduction credits. These credits - Certified Emission Reductions (CERs)- can be used to contribute to the emission reduction commitments of industrialised countries. Article 12 of the Kyoto Protocol defines CDM.

(See also bilateral, multilateral and unilateral CDM).

CDM Executive Board

The CDM Executive Board approves CDM projects, certifies operational entities and will issue carbon credits for CDM projects.

Commitment Period

The time period (2008-2012) during which industrialised countries will restrict emissions to the set level agreed upon in the Kyoto Protocol.

Credits

These are assigned for emissions reductions. There are four types of Kyoto credit - Assigned Amount Units, Certified Emission Reductions, Emission Reduction Units, and Removal Units. The former are allocated to countries who have Kyoto Protocol targets, and the latter three types are generated through different types of projects.

Crediting periods

The crediting period is the time period for which credits will be awarded without the need for a review of the project's baseline assumptions. Crediting periods can be either 7 years, renewed twice, i.e. 21 years in total, or a single period of 10 years.

Designated National Authority

The DNA is the official body representing the Government which takes part in the arrangement of CDM/JI projects. For JI host countries, the DNA approves the projects and issues the emission reduction units.

Designated Operational Entity

A Designated Operational Entity is an independent body accredited by the CDM Executive Board (CDM EB) that either validates a project proposal and recommends it for registration by the CDM EB, or verifies the monitoring data and recommends to the CDM EB the amount of carbon credits that should be issued.