Glossary of Climate Change Terms
Abatement
The reduction of greenhouse gas emissions.
Additionality
Emissions reductions are 'additional' if they would not occur if the GHG reduction project had not been implemented. Effectively, the financial incentives provided by the sale of carbon credits are needed to make the project financially viable. A variety of additionality 'tests' have been proposed. Basically, demonstrating additionality means showing that the emissions reductions being used as offsets are not 'business as usual'. Additionality relates to the need for a project proposal to be additional to 'business-as-usual'. Additionality relates to both investment and environmental measures:
- Investment additionality criteria are used to determine that the proposal is additional to "business-as-usual".
- Environmental additionality criteria are used to determine that the project will achieve measurable emission reductions beyond "business-as-usual".
Afforestation
Planted forests on land not previously in forest.
Assigned Amount
The assigned amount is the emission allowance assigned under the Kyoto Protocol for the man-made emissions of greenhouse gases that an industrialised country (Annex 1 Party) is permitted to emit over a certain commitment period.
Assigned Amount Unit (AAU) - This represents a unit issued out of a country's initial assigned amount and designated as an assigned amount unit (or AAU), expressed as a tonne of CO2-equivalent, by the Registry; or an overseas registry of a country listed in Annex B of the Kyoto Protocol.
Assurance
The process of an independent third party checking the methodology, data and calculation processes to ensure that they are robust.
Audit
A systematic examination against defined criteria to determine whether activities and related results conform to planned arrangements and whether these arrangements are implemented effectively and are suitable to achieve the organisation’s objectives.
Baseline Emissions
The baseline for a project is the scenario that reasonably represents 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 baseline should include emissions from all greenhouse gases within the project boundary. The additional emission reductions that a project contributes can only be determined once the baseline has been calculated or assessed. Various approaches can be taken to determine the baseline, but the approach must be justified as part of the project validation process.
Biodiversity
The range of species (including genetic diversity within species), communities and ecosystems, and the natural interactions and processes that take place above and below ground in the environment.
Biomass
The total mass of living matter within a given area.
Biosphere
The part of the Earth system comprising all ecosystems and living organisms in the atmosphere, on land (terrestrial biosphere), or in the oceans (marine biosphere), including derived dead organic matter such as litter, soil organic matter, and oceanic detritus.
Business-as-Usual
If a proposal is for a project that would have proceeded without the Projects incentive, then it meets the criteria of "business-as-usual" and is not eligible for the Projects tender.
Carbon
A fundamental chemical element. It is important to distinguish between carbon and carbon dioxide.
Carbon Asset
The potential of greenhouse gas emission reductions that a project is able to generate and sell.
Carbon calculator
A tool used to calculate carbon dioxide emissions from fuel and energy sources and/or production processes.
Carbon Credit
A certificate that represents the elimination of a single tonne of carbon dioxide (or equivalent) from the Earth's atmosphere by some means.
Carbon Dioxide (CO2)
The most important greenhouse gas. CO2 emissions result from the combustion of fuel, from land use changes and from some industrial processes. CO2 emissions are limited by the Kyoto protocol. A gas each of whose molecules consist of a carbon atom and two oxygen atoms. Carbon dioxide is the most significant greenhouse gas, and is emitted as a result of a wide range of human activities such as burning petrol and burning trees. A single carbon credit offsets one tonne of carbon dioxide.
Carbon dioxide equivalent (CO2e)
The basis for comparing the warming effect of a greenhouse gas as compared to carbon dioxide. It is calculated by multiplying the mass of a greenhouse gas by its global warming potential. There are six main greenhouse gases which cause climate change and are limited by the Kyoto protocol. Each gas has a different global warming potential. For simplicity of reporting, the mass of each gas emitted is commonly translated into a carbon dioxide equivalent (CO2e) amount so that the total impact from all sources can be summed.
Carbon footprint
A measure of the amount of carbon dioxide or CO2 emitted through the combustion of fossil fuels; in the case of an organisation or business, it is the CO2 emissions due to their everyday operations; in the case of an individual or household, it is the CO2 emissions due to their daily activities; for a product or service, it is the CO2 emissions due to growing, production and transport to market; for materials, it is a measure of the embodied CO2 determined through life cycle analysis. It should be expressed in carbon dioxide equivalent (CO2e).
Carbon neutral
CO2 emissions to the atmosphere are fully offset, counterbalanced, compensated or neutralised through the purchase of an equivalent amount of carbon credits created from forest sinks, the generation of renewable energy or energy efficiency projects; i.e., there are no net greenhouse gas emissions. The term may be used to describe a product, service, event, organisation, or individual activities.
Carbon Pool
A collection of physical objects containing carbon that are managed so as to maintain a well-defined level of carbon. For example, Forests NSW has created a carbon pool in the form of forests.
Carbon sinks
Carbon sink refers to removal of atmospheric CO2, usually via photosynthesis in plants. Growing pasture to shrublands, and shrublands to forest results in accumulating large quantities of biomass carbon. Because the natural growth of a native forest from pasture will take such a long time (probably centuries), the sequestration of biomass carbon will continue for a long time. Once a forest matures additional carbon sequestration slows and stops as trees begin to die and decay. Natural processes then cycle the carbon around the forest ecosystem, from live trees to dead trees, to soil and back through new establishment and regeneration, without adding any more. Soil carbon is actually the largest carbon stock, but it often changes comparatively slowly, so is not expected to act as a sink in many cases. Because of the large stock involved even small changes will be significant, so soil carbon sinks or sources are the subject of much ongoing research.
Carbon trading
A market in which large emitters of CO2 can offset their emissions by buying carbon credits from another party. Carbon trading markets are being developed on a global and national levels.
Certified Emission Reduction Unit (CER)
This represents a unit derived from a Clean Development Mechanism project, issued by the CDM registry, and designated as a certified emission reduction unit (or CER) by the CDM registry.
Chicago Climate Exchange (CCX)
The CCX was the first voluntary cap-and-trade based carbon credit trading system. Members to the Chicago Climate Exchange make a voluntary but legally binding commitment to reduce GHG emissions. By the end of Phase I (December, 2006), all Members will have reduced direct emissions 4% below a baseline period of 1998-2001. Phase II, which extends the CCX reduction program through 2010, will require all Members to ultimately reduce GHG emissions 6% below baseline. Among the members are companies from North America as well as municipalities or US States or Universities. As new regional initiatives began to take shape in the U.S., membership of the CCX grew from 127 members in January 2006 to 237 members by the end of the year while new participants expressed their interest in familiarizing themselves with emissions trading. More information at www.chicagoclimateexchange.com
Clean Development Mechanism (CDM)
The Clean Development Mechanism (CDM) establishes a process for Annex I Parties to implement project activities that reduce emissions in non-Annex I Parties, in return for certified emission reduction (CERs) units. Annex I Parties can use the CERs to help meet their emissions targets under the Kyoto Protocol.
Climate change
Changes in long-term trends in the average climate, such as changes in average temperatures. The potential consequences of global warming include melting icecaps and glaciers, rising sea levels and a greater incidence of extreme weather such as storms, heatwaves, droughts and floods. In IPCC (Intergovernmental panel on Climate Change) usage, climate change refers to any change in climate over time, whether due to natural variability or as a result of human activity. In UNFCCC (United Nations Framework Convention on Climate Change) usage, climate change refers to a change in climate that is attributable directly or indirectly to human activity that alters atmospheric composition.
CO2e
See Carbon Dioxide equivalent.
Commitment period
A period within which parties to the Kyoto Protocol are required to meet their greenhouse gas emissions reduction target, which is averaged over the years of the commitment period. The first commitment period (CP1) covers the five years, 2008 - 2012. The period between now and 2008 is called the pre-commitment period.
Continual improvement
The process of continuing to take action to achieve improvements in overall greenhouse gas emissions measurement and reduction, in line with the organisation’s environmental objectives.
Conversion factor(s)
See Emissions factors.
Data acquisition
The process by which an organisation captures data on its activities which result in GHG emissions (e.g. fuel and energy use).
Data sources
The source of data e.g. electricity or gas retailer, production data.
Direct emissions (Scope 1)
Greenhouse gas emissions from sources that are owned or controlled by an organisation, e.g. from production processes, company owned refrigeration and air-conditioning equipment, and/or burning of fuel in boilers and company owned vehicles. These are termed Scope 1 activities in the international standards.
Embodied Emission Factors
Embodied emission factors are the factors applied to common construction, and other, materials to convert them to CO2-equivalent. They are associated with product footprints.
Emission Factors
A numerical factor used to convert a unit of a GHG emitting activity into a unit of GHG (in CO2 equivalent), e.g. converting a unit of electricity (kWh) into a CO2 value. Emission factors for a similar type of activity may differ on a regional or national level; for example the emissions factor for electricity generated in New Zealand is lower than the one for the UK as New Zealand produces more of its total electricity from renewable sources (mainly hydro).
Emission Reduction Unit (ERU)
This represents a unit derived from a Joint Implementation project (see below), issued by converting an assigned amount unit or removal unit, and designated as an emission reduction unit (or ERU) by: the Registry; or an overseas registry of a country listed in Annex B of the Kyoto Protocol. This unit is equal to one metric ton of carbon dioxide equivalent.
Emission Units
The Unit types specified in the Kyoto Protocol are:
- Assigned amount units (AAUs),
- Certified emission reduction units (CERs),
- Emission reduction units (ERUs),
- Removal units (RMUs).
Each of these units represents one tonne of carbon dioxide equivalent.
In New Zealand the ETS introduces the NZU (New Zealand Unit); a single NZU is also equivalent to one tonne of carbon dioxide equivalent.
Emissions intensity
A measure of greenhouse gas emissions against a key performance indicator e.g. tonnes/unit of production or tonnes/productive man hour.
Emissions inventory
A quantified list of an entity's GHG emissions and sources. The entity may be an organisation or country.
Emissions reduction
A measured reduction in greenhouse gas emissions or emissions intensity due to the implementation of a reduction project (such as efficiency project and/or fuel substitution).
European Union Emission Trading Scheme (EU ETS)
The EU ETS was the first Kyoto Protocol based cap-and-trade system. It was launched on January 1, 2005 as a cornerstone of EU climate policy towards its Kyoto commitment and beyond. In its first phase from 2005 to 2007, the EU ETS regulated CO2 emissions from energy intensive installations representing some 40% of EU emissions. Following this pilot phase, Phase II of the EU ETS (extending from 2008 to 2012) introduces tighter constraints on obligated installations.
Emissions Trading Scheme (New Zealand ETS)
The ETS is the core element of the New Zealand Government's response to Climate Change, and provides the means to meet its obligations under the Kyoto Protocol (and its successor agreements). The ETS is a carbon trading scheme, similar in concept and design to schemes already operating in Europe and the USA. However, the ETS differs from these schemes in that it is an "all gases, all sectors" scheme, meaning that all GHG emitting activities are included (stationary energy, road transport, agriculture, and other industrial processing). Essentially, the ETS places a price on greenhouse gas emissions, with certain businesses having obligations to buy carbon credits to cover the emissions from their activities. However, the ETS has been designed so that only a very small number of businesses have statutory obligations; primarily those at the top of the supply chain (such as fossil fuel electricity generators, fuel importers). Most businesses and individuals will only be affected by higher prices, from increases in energy costs, as the costs of the carbon credits are passed down to consumers. The ETS has many mechanisms in place to gradually introduce its impacts; for example, road transport and agriculture will not enter the scheme until 2011 and 2013, respectively; and large industrial emitters operating in certain export markets (e.g. Rio Tinto and aluminium), and farmers, have free allocation of credits for many years.
Footprint
In the context of the environment, an entity's "footprint" is the impact that the entity has on the environment. In the context of global warming, an entity's footprint is measured in tonnes of carbon dioxide (equivalent) that the entity has emitted or caused to be emitted.
Fossil fuel
A hydrocarbon deposit, such as petroleum, coal, or natural gas, derived from living matter of a previous geologic time and used for fuel.
Global change
Changes in the environment resulting from both natural changes and impacts of human activities on the world's atmosphere and climate system.
Global warming
The progressive gradual rise of the Earth's average surface temperature thought to be caused in part by increased concentrations of GHGs in the atmosphere, primarily from anthropogenic (human-caused) activities. Greenhouse gases trap heat that is normally radiated into space, and reflect it back to earth.
Global Warming Potential
Global Warming Potential (GWP) is a relative measure of the amount of heat trapped in the atmosphere by any greenhouse gas. GWP values for different gases are expressed relative to the GWP of the reference gas, carbon dioxide, which is assigned a value of 1.
Green Power/Energy
Electricity generated using a process whose operation does not emit greenhouse gases. Examples are wind, hydro, or solar generators.
Greenhouse Effect
An atmospheric effect in which carbon dioxide, and certain other gases, in the Earth's atmosphere reduce the rate at which heat is released from the Earth resulting in a net increase in the Earth's atmospheric temperature.
Greenhouse gas (GHG) emissions
GHG emissions are those which contribute to the Greenhouse Effect. In the Kyoto Protocol there are six specified GHGs: carbon dioxide (CO2), nitrous oxides (N2O ), methane (CH4), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).
Greenhouse Gas Protocol
A standard developed by the World Business Council for Sustainable Development (WBCSD) and the World Resources Institute (WRI) for greenhouse gas inventory and reporting. The main GHG Protocols are for organisations and projects.
Hectare
A unit of area, typically used for measuring land.
Host Country
The country where an emission reduction project is physically located.
Indirect emissions (Scope 2)
Greenhouse gas emissions arising from the generation of imported (purchased) electricity, heat or steam consumed by an organisation. These are termed Scope 1 activities in the international standards.
Indirect emissions (Scope 3)
Greenhouse gas emissions that occur as a consequence of the activities of an organisation, but occur from sources not owned or controlled by the organisation.
ISO 14064 and ISO 14065
A series of standards prepared by the International Standards Organisation (ISO) for greenhouse gas accounting and verification.
ISO 14064-1:2006, Greenhouse gases – Part 1
Specification with guidance at the organization level for the quantification and reporting of greenhouse gas emissions and removals.
ISO 14064-2:2006, Greenhouse gases – Part 2
Specification with guidance at the project level for the quantification, monitoring and reporting of greenhouse gas emission reductions and removal enhancements.
ISO 14064-3:2006, Greenhouse gases – Part 3
Specification with guidance for the validation and verification of greenhouse gas assertions.
ISO 14065: 2007, Greenhouse gases
Requirements for greenhouse gas validation and verification bodies for use in accreditation or other forms of recognition.
Joint Implementation (JI)
A project based mechanism that allows an Annex I Party (with a commitment inscribed in Annex B of the Kyoto Protocol) to implement an emission-reducing project or a project that enhances removals by sinks in the territory of another Annex I Party (with a commitment inscribed in Annex B of the Kyoto Protocol) and count the resulting emission reduction units (ERUs) towards meeting its own Kyoto target.
Kyoto Mechanisms (KM)
The three flexibility mechanisms that may be used by Annex I Parties to the Kyoto Protocol to fulfill their commitments through emissions trading (Art. 17). Those are the Joint Implementation (JI, Art. 6), Clean Development Mechanism (CDM, Art. 12) and trading of Assigned Amount Units (AAUs).
Kyoto Protocol
The international agreement under the United Nations Framework Convention on Climate Change (UNFCCC) that legally binds developed countries listed in its Annex B to targets to reduce greenhouse gas emissions. The Kyoto Protocol provides for three mechanisms to facilitate the reduction of greenhouse gas emissions: Joint Implementation - Emission reductions that arise from project investments in developed countries (Annex 1 countries). Clean Development Mechanism (CDM) - Emission reductions arising from project investments in developing countries (non-Annex 1 countries). International emissions trading - Portions of an Annex 1 country's emission allowances can be bought and sold on an international carbon trading market.
Land-use, Land-use change and Forestry (LULUCF)
Land uses and land-use changes can act either as sinks or as emission sources. It is estimated that approximately one-fifth of global emissions result from land-use activities. The Kyoto Protocol allows Parties to receive emissions credit for certain land-use activities that reduce net emissions.
Leakage
Leakage is the indirect effect of emission reduction policies or activities that lead to a rise in emissions elsewhere (for example, fossil fuel substitution leads to a decline in fuel prices, resulting in a rise in fuel use elsewhere). Alternatively referred to as secondary effects.
Materiality
The extent to which an organisation has included, or excluded, certain greenhouse gas emissions from its organisational footprint. Emissions are material if their omission or misstatement could influence the economic decisions of users taken on the basis of the emissions inventory. or error judged in the particular circumstances of its omission or misstatement. Materiality is one of the key tests that a verification process will perform.
Methane (CH4)
A gas whose molecules consist of one carbon atom and four hydrogen atoms. Methane is a greenhouse gas. Each molecule of methane has a far greater greenhouse effect (approximately 21 times) than each molecule of carbon dioxide. However, humans generate far less methane than carbon dioxide, so carbon dioxide is the most significant greenhouse gas. Methane is a byproduct of digestion by ruminant animals, and decomposition of organic wastes in wet environments (e.g., swamps, paddy fields). Methane emissions also result from production of coal, natural gas, and oil.
Nitrous Oxide (N2O)
A gas whose molecules consist of one nitrogen atom and two oxygen atoms. Nitrous Oxide is a greenhouse gas. Each molecule of nitrous oxide has a far greater greenhouse effect (approximately 310 times) than each molecule of carbon dioxide. Nitrous oxide is emitted from various activities, including the use of fertilisers and fossil fuel combustion.
Offset
An emissions reduction, resulting from a reduction project, which has been sold to compensate for emissions elsewhere. Offsets are commonly used to net off corporate emissions so that an organization can claim to be carbon neutral.
Offsetting
The process of compensating for CO2 emissions by purchasing carbon credits.
Permanent Forest Sinks Initiative (PFSI)
This New Zealand government initiative provides an opportunity for landowners to establish permanent forest sinks and obtain tradable Kyoto Protocol compliant emission units in proportion to the carbon sequestered in their forests The PFSI is administered by the Ministry of Agriculture and Forestry's Indigenous Forestry Unit.
Project Boundary
The project boundary, or project scope, includes those activities which are included in the measurement of GHG changes arising from a reduction project. The boundary should include all direct, or primary, effects, and significant indirect, or secondary, effects.
Projects to Reduce Emissions (PRE)
A pre-ETS, now defunct, New Zealand Government programme that supported initiatives which reduced emissions of greenhouse gases beyond the reductions that would have occurred without the project by awarding them Kyoto-compliant carbon credits.
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).
Reforestation / regeneration
Regrowth of forest on land that was previously forested by indigenous species.
Reservoir
Anything that has the physical ability to store GHG.
Ruminant
An animal that chews its cud regurgitated from its rumen, a ‘second stomach’ for digesting tough plant fibres. Methane is ‘burped’ when the cud is regurgitated. Cattle and sheep are ruminants.
Sequestration
The removal of greenhouse gases from the atmosphere by photosynthesis or technological measures through storage in a sink. Storage may involve containing the gas physically without changing its chemical form, or else, more commonly, fixing the gas with a different material through a chemical or biophysical process.
Sink
Anything that physically removes a GHG from the atmosphere. This usually refers to the removal of atmospheric CO2, usually via photosynthesis in plants and the ongoing growth of plant matter, and its final decay into soil.
Source
Anything that physically releases a GHG into the atmosphere.
Tonne
A metric unit of weight. One tonne is one thousand kilograms. All global warming discussions use tonnes instead of tons (which is an imperial measure of weight).
Trace gases
A term used to refer to gases found in the Earth's atmosphere other than nitrogen, oxygen, argon and water vapour. When this terminology is used, carbon dioxide, methane, and nitrous oxide are classified as trace gases. Although trace gases taken together make up less than one percent of the atmosphere, carbon dioxide, methane and nitrous oxide are important in the climate system. Water vapour also plays an important role in the climate system; its concentrations in the lower atmosphere vary considerably from essentially zero in cold dry air masses to perhaps 4 percent by volume in humid tropical air masses.
UNFCCC
United Nations Framework Convention on Climate Change. The international body that manages the inter-governmental efforts to tackle climate change, including the Kyoto Protocol and any successor agreements.
Validation
The independent assessment of a project’s design to determine whether it meets the requirements of the relevant program; for example to ensure reductions are additional and that they are not counteracted by leakage.
Verified Emission Reductions (VERs)
A unit of greenhouse gas emission reductions that has been verified by an independent auditor. This designates emission reductions units that are traded on the voluntary market.
Verification Report
A report prepared by an Operational Entity, or by another independent third party, pursuant to a Verification, which reports the findings of the Verification process, including the amount of reductions in emission of greenhouse gases that have been found to have been generated.
Verification
The independent assessment of an organisational footprint, or project results, to ensure that it meets the requirements of the relevant program or standard.
Zero emissions
No greenhouse gases are emitted. Generally the term used should be zero net emissions, which means the actual emissions are completely offset through carbon sequestration or purchase of other carbon credits.