CDM Glossary

8/3/2019 CDM Glossary

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CDM Glossary

This document explains the terms used in theProcedures, Guidance, Clarifications, Tools and Forms.

A very useful tool for project participants when filling out the variousCDM forms.

Format Version EB AnnexGlossary of CDM terms PDF (301 KB) 03 36 32

The following Clean Development Mechanism (CDM) glossary intends to assist in clarifying terms used

in the CDM Project Design Document (CDM-PDD) and the in the CDM modalities and procedures in

order to facilitate the completion of the CDM-PDD by project participants.

Terms in alphabetical order:

ABCDEFGH I JKLMNOP Q RSTUV W X Y Z

Additionality:

The reduction in Greenhouse Gas emissions by sources or removals by sinks that is additional to any

that would occur in absence of the CDM Project activity. The Marrakesh Accords state that a project

activity is additional if anthropogenic emissions of Greenhouse Gases are reduced below those that

would have occurred in the absence of the CDM project.

Afforestation:

The direct human-induced conversion of land that has not been forested for a period of at least 50 years

to forested land through planting, seeding and/or the human-induced promotion of natural seed sources.

Allocation Statement:

The statement which may be provided by Project Participants to the CDM Executive Board .

Allowance:

Kyoto Protocol: Amount of emissions that a country may emit in the commitment period (see also

assigned amount, credits, cap, target).

EU Emissions trading directive: one allowance represents the tradable right to emit one tonne of CO2-eq

per year by a participant of the emissions trading system.

Annex I:

Kyoto Protocol: For the purpose of differentiating commitments, the Convention contains an Annex, thatlists the countries that are considered developed countries (OECD members and countries in Eastern

Europe and the (former) Soviet Union), the so-called Annex I countries'. For an overview of Annex I

countries see Annex B of this guide.

EU emissions trading Directive: Annex I to the Directive contains a list of categories of activities that are

covered by the Directive.


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Annex B Countries:

Those countries listed in Annex B to the Kyoto Protocol, being a list of Annex I Countries that have

committed to a quantitative emission reduction target under Article 3.1 of the Kyoto Protocol.

Annex I Countries:

Countries that have committed to emission restraints under Article 4.2 (a) and (b) of the UNFCCC aslisted in Annex I of the UNFCCC (generally developed countries and countries undergoing the process of

transition to a market economy).

Assigned Amount:

Amount of Greenhouse Gases emissions that an Annex

B Party can emit during the Commitment Period taking into account the quantified emission limitations

reduction commitments of Annex B of the Kyoto Protocol.

AAU Assigned Amount Unit:

A unit issued pursuant to the relevant provisions on registries in decision - CPM.1 of the MarrakeshAccords and is equal to one metric ton of carbon dioxide equivalent.

Baseline:

The scenario that reasonably represents the anthropogenic emissions by sources of Greenhouse Gases

that would occur in the absence of the proposed project activity.

Baseline Approach:

A baseline approach is the basis for a baseline methodology. The Executive Board agreed that the three

approaches identified in sub-paragraphs 48 (a) to (c) of the CDM modalities and procedures be the only

ones applicable to CDM project activities. They are:

- Existing actual or historical emissions, as applicable; or

- Emissions from a technology that represents an economically attractive course of action, taking into

account barriers to investment; or

- The average emissions of similar project activities undertaken in the previous five years, in similar

social, economic, environmental and technological circumstances, and whose performance is among the

top 20 per cent of their category.

Baseline Methodology:

A methodology is an application of an approach as defined in paragraph 48 of the CDM modalities and

procedures, to an individual project activity, reflecting aspects such as sector and region. No

methodology is excluded a priori so that project participants have the opportunity to propose a

methodology. In considering paragraph 48, the Executive Board agreed that, in the two cases below, the

following applies:

(a) Case of a new methodology: In developing a baseline methodology, the first step is to identify the

most appropriate approach for the project activity and then an applicable methodology;

(b) Case of an approved methodology: In opting for an approved methodology, project participants have

implicitly chosen an approach.


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CDM:

Clean Development Mechanism - flexible mechanism under Article 12 of the Kyoto Protocol with the

purpose to (1) assist non-Annex I Parties in achieving sustainable development; (2) contribute to the

ultimate objective of the UNFCCC; and (3) assist Parties included in Annex I achieve compliance with

their quantified emission limitation and reduction commitments.

CDM Executive Board:

The formal governance body established under Article 12 to oversee the implementation and

administration of the CDM, under the authority and guidance of the COP/MOP.

CDM Project:

An emission reduction project which is intended to be registered with the CDM Executive Board and

ultimately realize the delivery of CERs.

CDM Registry:

Standard electronic database to be established and maintained by the CDM Executive Board which willcontain common data elements relevant to the issuance, holding, transfer and acquisition of CERs.

CER Certified Emission Reduction:

A unit issued under the CDM mechanism pursuant to Article 12 of the Kyoto Protocol and all other

relevant requirements and which is equal to one metric ton of CO2e.

Certification:

The written assurance by the DOE to confirm that, during a specified time period, a CDM Project activity

achieved the reductions in Greenhouse Gas emissions as verified.

COP:

Conference of Parties to the UNFCCC, held on a

regular basis to establish the rules to implement the UNFCCC.

COP/MOP:

Conference of the Parties serving as the meeting to the Parties to the Kyoto Protocol, being the Kyoto

Protocol's supreme body. The sessions of the COP and COP/MOP will be held during the same period.

Crediting Period:

The period for which the CDM Project can generate CERs.

Crediting period - fixed (also fixed crediting period):

"Fixed Crediting Period" is one of two options for determining the length of a crediting period. In the case

of this option, the length and starting date of the period is determined once for a project activity with no

possibility of renewal or extension once the project activity has been registered. The length of the period

can be a maximum of ten years for a proposed CDM project activity. (paragraph 49 (b) of CDM

modalities and procedures).


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Crediting period - renewable (also renewable crediting period):

"Renewable crediting period" is one of two options for determining the length of a crediting period. In the

case of this option, a single crediting period may be of a maximum of seven years. The crediting period

may be renewed at most two times (maximum 21 years), provided that, for each renewal, a designated

operational entity determines that the original project baseline is still valid or has been updated takingaccount of new data, where applicable, and informs the Executive Board accordingly (paragraph 49 (a)

of the CDM modalities and procedures). The starting date and length of the first crediting period has to

be determined before registration.

DNA Designated National Authority:

The national authority for CDM designated by Party to the Protocol.

DOE Designated Operational Entity:

An independent legal entity accredited by CDM Executive Board that can validate proposed CDM

Projects and verify and certify Greenhouse Gas emission reductions.

ERU Emission Reduction Unit:

A unit issued under the JI mechanism pursuant to Article 6 and all other relevant Kyoto Protocol

requirements and which is equal to one metric ton of carbon dioxide equivalent.

ERPA:

Emission Reduction Purchase Agreement

First Commitment Period:

The period between 2008-2012 during which Annex I countries are required to reduce their emissions of

Greenhouse Gases to the levels established in the Kyoto Protocol.

Greenhouse Gas:

One or more of the six gases listed in Annex A to the Kyoto Protocol that trap heat when released into

the atmosphere, being carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons

(HFCs), perfluorocarbons (PFCs) and sulfur hexafluoride (SF6). They occur through natural and human-

induced activities.

Host Country:

The non-Annex I country in which a CDM Project is based.

JI Joint Implementation Mechanism:

Flexible mechanism under Article 6 of the Kyoto Protocol with the purposes (1) to assist Annex I Parties

in achieving sustainable development and (2) to contribute to the ultimate objective to the UNFCCC and

(3) to assist Annex I Parties to achieving compliance with their quantified emission limitation and

reduction commitments.


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Kyoto Protocol:

The Protocol to the UNFCCC signed at the third COP meeting, establishing binding Annex I Greenhouse

Gas emission reduction targets of 5.2% below 1990 levels by 2008-2012. For the Kyoto Protocol to enter

into force, it must be ratified by 55 parties representing 55% of industrial nations' Greenhouse Gas

emissions.

Leakage:

The net change of anthropogenic emissions by sources of Greenhouse Gases that occurs outside the

project boundary and is measurable and attributable to the DM Project activity.

Letter of Approval:

A letter issued by the Designated National Authority of the Host Country to a CDM Project confirming

that the project, as proposed, will assist the Host Country to achieve its goals of sustainable

development.

LULUCF:Land Use, Land-Use Change and Forestry as defined under the Kyoto Protocol and Marrakesh Accords

particularly decision 11/CP.7.

Marrakesh Accords:

Decisions 2/CP.7 through to Decision 24/CP.7 (inclusive) of the seventh session of the COP/MOP.

Monitoring:

Estimation or measurement of the actual emissions within the project boundary during the crediting

period.

Monitoring plan:

Plan that describes the collection and archiving of all relevant data necessary for assessing the level of

greenhouse gas emissions from a JI/CDM project during the crediting period.

New entrants:

Any installations carrying out one or more activities listed in Annex I of the EU emissions trading

Directive which obtains (an update of ) a greenhouse gas emissions permit after the national allocation

plan has been established.

Non-Annex I Countries:

Countries which are not listed in Annex I of the

UNFCCC (generally, developing and least developed countries).

Opt-in:

Unilateral inclusion of additional activities (and possibly gases) in the EU emissions trading system.


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Opt-out:

Temporary exclusion of certain installations and activities in 2005-2007 trial period of the EU emissions

trading system to be decided by Member States.

ODA:

Official Development Assistance - Annually disbursedofficial bilateral government assistance from Annex I to non-Annex I countries.

Operational lifetime:

It is defined as the period during which the CDM project activity is in operation. No crediting period shall

end after the end of the operational lifetime (calculated as from starting date).

Organization Identifier:

The Party for which an account within the CDM Registry is maintained, using the two letter country code

defined by the International Organization for Standardization (ISO 3166).

Party:

A country that has ratified the Kyoto Protocol.

Permit:

A greenhouse gas emissions permit represents the non-tradable license to emit greenhouse gas

emissions, without which participants in the EU emissions trading system are not allowed to emit

greenhouse gases.

Pooling:

Forming of a pool of similar activities, in which allowances can be re-allocated among the pool membersand one common trustee has the responsibility that the pool attains enough allowances for its combined

emissions.

Project Boundary:

The notional boundaries surrounding an actual or proposed CDM Project within which Greenhouse Gas

emission impacts and effects are considered and quantified.

Project Design Document:

The document to be prepared and submitted by Project Participants to an accredited DOE for validation

of a proposed project activity.

Project Participants:

The legal entity (both public and private entities) that develop and implement CDM Project activities.

PCF:

World Bank's Prototype Carbon Fund.


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Registration:

The formal acceptance by the CDM Executive Board of a validated project as a CDM Project.

Registration is the prerequisite for verification, certification and issuance of CERs related to that project.

Reforestation:

The direct human-induced conversion of non-forested land to forested land through planting, seedingand/or the human-induced promotion of natural seed sources, on land that was forested but that has

been converted to non-forested land. For the First Commitment Period, reforestation activities will be

limited to reforestation occurring on those lands that did not contain forest on 31 December 1989.

RMU:

A Removal Unit (from carbon sequestration by sink' activities) issued pursuant to the relevant provisions

on registries in decision - CMP 1, equal to one metric ton of CO2e.

SBSTA:

The Subsidiary Body for Scientific and Technological Advice.Sequestration Removal of carbon from the atmosphere by carbon sinks', such as forests.

Sinks:

Biological components of the carbon cycle that can sequester CO2, such as forests, soils, oceans, etc.

Activities that result in a reduction of the uptake of CO2 by sinks (e.g. deforestation) have to be included

in national emission inventories. Activities that enhance the biological sequestration of CO2, e.g.

afforrestation can be part of JI/CDM projects (under different rules).

Stakeholders:

Stakeholders mean the public, including individuals, groups or communities affected, or likely to be

affected, by the proposed CDM project activity or actions leading to the implementation of such an

activity.

Transaction Log:

Under the Marrakesh Accords, a transaction log will be established by the secretariat to the UNFCCC to

verify the validity of all transactions involving Kyoto Protocol rights including CERs within or between

registries (including between a national registry and the CDM registry). The log will cover the issuance,

transfer, acquisition, cancellation, retirement or carryover into the next commitment period of any Kyoto

Protocol rights.

UNFCCC:United Nations Framework Convention on Climate Change, signed at the Earth Summit' in Rio de

Janeiro in May 1992.

Unilateral CDM:

A Clean Development Mechanism project developed and implemented by a developing country (non-

Annex I) party and/or entity.


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Validation:

The process of independent evaluation of a project activity by a designated DOE against the

requirements of the CDM as set out in the Marrakesh Accords on Article 12 and on the basis of the

Project Design Document.

Verification:The periodic independent review and ex post determination by the designated DOE of the monitored

reductions in anthropogenic emissions by sources of Greenhouse Gases that have occurred as a result

of a registered CDM Project activity during the verification period.

Verified Emission Reduction:

A unit of GHG emission reductions that has been verified by an independent auditor (such as DOE), but

that has not yet undergone the procedures and may not yet have met the requirements for verification,

certification and issuance of CERs or ERUs under the Kyoto Protocol. A VER corresponds to 1 tonne of

CO2e emission reductions.

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ABBREVIATIONS

AAU -Assigned Amount Unit

AE -Avoided Emissions

AIJ -Activities Implemented Jointly

AOSIS -Alliance of Small Island States

AS -Allocation Statement

BAU - Business as Usual Scenario

CACAM - Group of Countries of Central Asia and the CaucasusCBD - Convention on Biological Diversity

CC - Climate Change

CDM - Clean Development Mechanism

CER - Certified Emission Reduction

COP - Conference of the Parties

COP/MOP - Conference of the Parties / Meeting of the Parties

CP - Crediting Period

CS - Carbon Sequestration

CT - Carbon Taxes

DC - Developing Countries

DNA - Designated National AuthorityDOE - Designated Operational Entity

EA - Early Actions

EB - Executive Board

EC - Early Crediting

EIA - Environmental Impact Assessment

EIT - Countries with Economies in Transition

ERPA - Emission Reduction Purchase Agreement


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ERU - Emission Reduction Unit

ET - Emission Targets

EU ETS - European Union Emission Trading System

FCP - First Commitment Period

FDI - Foreign Direct Investment

FE - Fugitive Emissions

GCOS - Global Climate Observing System

GEF - Global Environmental Facility

GHG - Greenhouse Gases

GWP - Global Warming Potential

IEA - International Energy Agency

IGO - Intergovernmental Organization

IPCC - Intergovernmental Panel on Climate Change

JI - Joint Implementation Mechanism

KP - Kyoto Protocol

LA - Letter of Approval

LDC - Least Developed Countries

LULUCF - Land use, Land Use Change and Forestry

MA - Marrakesh Accords

NGO - Non-Governmental Organization

ODA - Official Development Assistance

OECD - Organisation for Economic Co-operation and Development

PB - Project Boundary

PDD - Project Design Document

PIN - Project Idea Note

PP - Project Participant

RMU - Removal Unit

SBSTA - Subsidiary Body for Scientific and Technological Advice

SBI - Subsidiary Body for ImplementationSD - Sustainable Development

TT - Technology Transfer

UNDP - United Nations Development Programme

UNFCCC - United Nations Framework Convention on Climate Change

WHO - World Health Organization

WMO - World Meteorological Organization

VER - Verified Emission Reduction

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CDM Glossary