Carbon Finance Terminology

-
As promised the second part of my 2 posts in response to Alan Bey's request. The terms used here are borrowed from the World Bank's glossary, which I have referenced as the relevant link. Follow the link for a more complete glossary.


Carbon Finance: Resources provided to projects generating (or expected to generate) greenhouse gas (or carbon) emission reductions in the form of the purchase of such emission reductions.

Certified Emission Reductions (CERs): A unit of greenhouse gas emission reductions issued pursuant to the Clean Development Mechanism of the Kyoto Protocol, and measured in metric tons of carbon dioxide equivalent.

Clean Development Mechanism (CDM): The mechanism provided by Article 12 of the Kyoto Protocol, designed to assist developing countries in achieving sustainable development by permitting industrialized countries to finance projects for reducing greenhouse gas emission in developing countries and receive credit for doing so.

Emission Reductions (ERs): The measurable reduction of release of greenhouse gases into the atmosphere from a specified activity or over a specified area, and a specified period of time.

Emission Reduction Units (ERUs): A unit of emission reductions issued pursuant to Joint Implementation. This unit is equal to one metric ton of carbon dioxide equivalent.

Emission Reductions Purchase Agreement (ERPA): Agreement which governs the purchase and sale of emission reductions.

EU ETS: the European Union emissions trading scheme, which began on January 1 2005. Its first phase
ends on December 31 2007; the second runs from 20082012

Kyoto Protocol: Adopted at the Third Conference of the Parties to the United Nations Convention on Climate Change held in Kyoto, Japan in December 1997, the Kyoto Protocol commits industrialized country signatories to reduce their greenhouse gas (or “carbon”) emissions by an average of 5.2% compared with 1990 emissions, in the period 2008-2012.

Project-Based Emission Reductions: Emission reductions that occur from projects pursuant to JI or CDM (as opposed to “emissions trading” or transfer of assigned amount units under Article 17 of the Kyoto Protocol).

Verified Emission Reductions (VERs): A unit of greenhouse gas emission reductions that has been verified by an independent auditor, but that has not yet undergone the procedures and may not yet have met the requirements for verification, certification and issuance of CERs (in the case of the CDM) or ERUs (in the case of JI) under the Kyoto Protocol.



Comments

Post a Comment

Popular posts from this blog

CDM Projects by Scope (Industry)

-
Image
An analysis of the scope (sectoral) distribution of registered CDM projects tells a fascinating story. As of 2009 almost 60% of these projects were in energy related industries. Less than one half of 1% was is Forestation related projects. One reason for the sectoral bias is the relative role of the energy sector in carbon emissions and by extension its resulting demand for carbon credits. From the perspective of charting a course forward for the CDM, the present sectoral distribution provides strong evidence in support of the need for more Forestation delated CDM projects.
Read more
-
AND WE ARE BACK !!! Please excuse the lag in posts on this blog - It's amazing how time runs, when the singular focus is on getting ahead professionally. So much has happened in the world of Carbon Balance during this hiatus, especially in the area of Global financing of  Carbon Balancing Suffice to state that I have had the time to think about the direction of this blog moving forward. To this end the focus will be on four (4) main themes. Energy Efficiency and Renewable Energy Success Stories in Developing Countries New and Existing - Outside the Box Technologies  Financing of Energy Efficiency and Renewable Energy Best Practices in Policy and Implementation of Financing of Energy Efficiency and Renewable Energy The goal is to have a post a week on each of these Themes.
Read more

IFC Board approves new standards - Implications for Carbon Finance

-
The International Finance Corporation (IFC) announced the final approval of its revised social and environmental standards last month, ending a process that has been wracked by controversy. The revised standards are expected to be reflected in changes in coming weeks to the Equator Principles, a voluntary set of project finance guidelines. The new Performance Standards introduce a number of additional requirements to IFC’s lending criteria. For example, large companies in the developing world applying to the IFC for a loan will now have to report on their greenhouse gas emissions. Other additions include stronger safeguards on biodiversity protection, the introduction of grievance mechanisms for workers and local communities, new measures on the use of security services, and guarantees for community health and safety.
Read more