Carbon Offset Glossary

This glossary has been designed for carbon offsets. If the word you are looking for is not here, please follow the Link to other useful glossaries.

Please note this glossary is a working draft and is under ongoing revision. We welcome comments here

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A/R Projects: AfforestationThe 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. and ReforestationThe reestablishment of forest on land that was previously forested but converted to another use before 31.12.1989. Projects
AAUs: Assigned Amount UnitsAssigned Amount Units. The emissions units are allocated to developed countries based on their Kyoto Protocol target and can be traded. One AAU equals one tonne of CO2e.. The emissions units are allocated to developed countries based on their Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. target and can be traded. One AAU equals one tonne of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2..
ABARE: The Australian Bureau of Agricultural and Resource EconomicsThe Australian Bureau of Agricultural and Resource Economics, is a government economic research agency which provides independent research and forecasting on numerous specialised areas, including the quality of the Australian environment. For more information, see here., is a government economic research agency which provides independent research and forecasting on numerous specialised areas, including the quality of the Australian environment. For more information, see here.
Abatement: A reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual.
ACCC: Australian Competition and Consumer CommissionAustralian Competition and Consumer Commission. An independent Commonwealth statutory authority formed in 1995 to administer the Trade Practices Act 1974 and other acts. The ACCC promotes competition and fair trade in the market place to benefit consumers, business and the community. Its primary responsibility is to ensure that individuals and businesses comply with the Commonwealth competition, fair trading and consumer protection laws.. An independent Commonwealth statutory authority formed in 1995 to administer the Trade Practices Act 1974 and other acts. The ACCC promotes competition and fair trade in the market place to benefit consumers, business and the community. Its primary responsibility is to ensure that individuals and businesses comply with the Commonwealth competition, fair trading and consumer protection laws.
Adaptation: Actions taken to help communities and ecosystems cope with changing climate conditions, such as the construction of flood walls to protect property from stronger storms and heavier precipitation, or the planting of agricultural crops and trees more suited to warmer temperatures and drier soil conditions.
Additionality: To be a robust offset, a project must be proven to be 'additional' to what would have occurred anyway. Additionality has 3 main components:
- financial additionality where the project needs to go beyond business as usual practice,
- regulatory additionality where the project needs to go beyond existing legal requirements, and
- environmental additionality where the emission reductions cannot be counted toward another emission reduction scheme or commitment.
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.
AGO: The Australian Greenhouse OfficeThe Australian Greenhouse Office has now been incorporated into the Department of Climate Change. has now been incorporated into the Department of Climate Change.
AGO Factors and Methods Workbook: The workbook has now been updated and replaced by the National Greenhouse Accounts FactorsThe National Greenhouse Accounts (NGA) Factors is an Australian guide to emission factors from a range of sectors that is used by companies to calculate greenhouse gases. It is prepared by the Department of Climate Change and replaces the AGO Factors & Methods Workbook. For more information, see here.. For more information, see here.
Anthropogenic emissions: Greenhouse-gas emissions resulting from human activities. Anthropogenic sources of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). include industry, agriculture, mining, transportation, construction, and deforestation.
AP7 (formerly AP6): Asia-Pacific Partnership on Clean Development and Climate sets up a non-binding partnership between the governments of Australia, People's Republic of China, India, Japan, South Korea, Canada and the United States. The partnership sets out a voluntary framework for action, which encourages cooperation between member parties and the private sector to develop and implement clean energy technologies.
AS/NZS 3598:2000: This Standard sets out minimum requirements for commissioning and conducting energy audits which identify opportunities for cost effective investments to improve efficiency and effectiveness in the use of energy. This Standard covers three levels of audit, as follows: (a) Level 1. (b) Level 2. (c) Level 3. Primarily, it is intended for use by energy users but will be of assistance to energy auditors, and may serve as a useful reference document for anyone interested in the field of energy management best practice.
Australia's National Greenhouse Accounts: A comprehensive set of reports outlining Australia’s greenhouse gas emissions. Further information is available at: http://www.greenhouse.gov.au/inventory/
Australian Carbon Trust Ltd: The Australian Carbon Trust is a public company limited by guarantee, funded by the Commonwealth Government with an independent Board of Directors. The Australian Carbon Trust will manage the Energy EfficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Trust which will provide information and tools for businesses to effectively participate in Australia’s climate change response. The Australian Carbon Trust is also the Program Administrator for the Carbon Neutral ProgramThe Carbon Neutral Program utilising the National Carbon Offset Standard officially commences on 1 July 2010. This Program is the successor to the Australian Government’s Greenhouse Friendly™ initiative (2001 – 2010). The Carbon Neutral Program is a voluntary scheme which certifies products or business operations as carbon neutral. The National Carbon Offset Standard, developed by the Australian government, underpins the integrity of the Program. under the National Carbon Offset Standard.
Australian Standard 4978: This standard provides a common approach to determining how much carbon a given area of forest can be expected to remove from the atmosphere, taking account of the species of tree, how densely the trees are planted and a number of other factors.
BCSE: Business Council for Sustainable Energy (BCSEBusiness Council for Sustainable Energy (BCSE).).
Biodegradable materials: Materials capable of being broken down rapidly by living organisms such as bacteria and fungi. This natural process of decay usually makes the materials harmless in a relatively short period of time. Food, sewage and most natural organic substances are biodegradable but manufactured materials such as glass, heavy metals and most types of plastic are not biodegradable.
Biofuels: BiofuelsBiofuels are renewable fuels made from biomass that can be used to supplement or replace the fossil fuels (such as petroleum and diesel) used in transport. The two main biofuels are ethanol and biodiesel. Ethanol is produced from the fermentation of sugar or starch in crops such as corn and sugar cane. Biodiesel is made from vegetable oils in crops such as soybean, or from animal fats. are renewable fuels made from biomassBiomass is non-fossilized and organic biodegradable material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter grown for use as Biofuels, but it also includes plant or animal matter used for production of fibres, chemicals or heat. Biomass may also include biodegradable wastes that can be burnt as fuel. that can be used to supplement or replace the fossil fuels (such as petroleum and diesel) used in transport. The two main biofuels are ethanol and biodiesel. Ethanol is produced from the fermentation of sugar or starch in crops such as corn and sugar cane. Biodiesel is made from vegetable oils in crops such as soybean, or from animal fats.
Biomass: BiomassBiomass is non-fossilized and organic biodegradable material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter grown for use as Biofuels, but it also includes plant or animal matter used for production of fibres, chemicals or heat. Biomass may also include biodegradable wastes that can be burnt as fuel. is non-fossilized and organic biodegradable material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter grown for use as BiofuelsBiofuels are renewable fuels made from biomass that can be used to supplement or replace the fossil fuels (such as petroleum and diesel) used in transport. The two main biofuels are ethanol and biodiesel. Ethanol is produced from the fermentation of sugar or starch in crops such as corn and sugar cane. Biodiesel is made from vegetable oils in crops such as soybean, or from animal fats. , but it also includes plant or animal matter used for production of fibres, chemicals or heat. Biomass may also include biodegradable wastes that can be burnt as fuel.
Broker: A brokerA broker is an intermediary, who buys and sells carbon offsets on behalf of clients. is an intermediary, who buys and sells carbon offsets on behalf of clients.
Bundled offsets: Bundled offsets are emissions that do not come from one single project but are a collection of offsets from various projects. The bundles are sometimes from a mixture of accreditation schemes and types.
Call option: A call optionA call option is a financial contract between two parties, the buyer and the seller of an abatement option. It is the option to buy abatement at a specified time in the future. The buyer of the option has the right, but not the obligation to buy an agreed quantity of abatement from the seller of the option at a certain time for a certain price (the strike price). The seller (or "writer") is obligated to sell the commodity (e.g. carbon offsets). The buyer pays a fee (called a premium) for this right. is a financial contract between two parties, the buyer and the seller of an abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. option. It is the option to buy abatement at a specified time in the future. The buyer of the option has the right, but not the obligation to buy an agreed quantity of abatement from the seller of the option at a certain time for a certain price (the strike priceGenerally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatement, the trade will be at the strike price, regardless of the spot price (market price) at that time. See also exercise price.). The seller (or "writer") is obligated to sell the commodity (e.g. carbon offsets). The buyer pays a fee (called a premium) for this right.
Cap and Trade: A term used to describe an emissions tradingUsually means an ETS. In relation to the Kyoto Protocol, Annex I countries can trade emissions reduction credits in order to comply with their Kyoto-assigned targets. (See also ETS.) system, where total emissions are limited or 'capped'. Permits are issued up to that cap, and a market allows those participants emitting less than the quota to sell their excess permits to emitters needing to buy extra permits to meet their quota.
Carbon (natural) Sequestration: Carbon (natural) sequestration refers to the long-term storage of carbon in forests and vegetation, soils or in the oceans.
Carbon Calculation: A method of calculating the amount of greenhouse gas emissions produced in a certain time frame from an activity. Carbon calculationA method of calculating the amount of greenhouse gas emissions produced in a certain time frame from an activity. Carbon calculation can be done for anything from one car journey to a whole business or industry. There are a number of different calculation methods used in the carbon offset market. can be done for anything from one car journey to a whole business or industry. There are a number of different calculation methods used in the carbon offset market.
Carbon credit: A generic term to assign a value to an emission, reduction or offset of greenhouse gas emissions. A carbon credit usually is equivalent to one tonne of CO₂eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2..
Carbon cycle: Carbon, in various forms, continuously circulates between the living world, the atmosphere, oceans and the Earth's crust. There are many different processes by which carbon is exchanged between these locations, which are collectively referred to as the carbon cycleCarbon, in various forms, continuously circulates between the living world, the atmosphere, oceans and the Earth's crust. There are many different processes by which carbon is exchanged between these locations, which are collectively referred to as the carbon cycle..
Carbon dioxide (CO₂): A greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomassBiomass is non-fossilized and organic biodegradable material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter grown for use as Biofuels, but it also includes plant or animal matter used for production of fibres, chemicals or heat. Biomass may also include biodegradable wastes that can be burnt as fuel. , as well as from all animals, plants, and a number of other natural sources. Carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. is the principal anthropogenic greenhouse gas that affects the earth’s temperature.
Carbon footprint: A measure of the greenhouse gas emissions attributable to an activity; it is commonly used at an individual, household or business level. It calculates the direct and indirect amount of CO2-eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2. emissions produced.
Carbon Innovators Network: EPA Victoria set up this forum for organisations that want to address the strategic and practical issues of greenhouse gas emissions. The network aims to stimulate debate and innovation in carbon management, provide the support and tools organisations need to develop sound carbon management strategies, and transform climate change from a business cost to a business opportunity. Find out more about the Carbon Innovators NetworkEPA Victoria set up this forum for organisations that want to address the strategic and practical issues of greenhouse gas emissions. The network aims to stimulate debate and innovation in carbon management, provide the support and tools organisations need to develop sound carbon management strategies, and transform climate change from a business cost to a business opportunity. Find out more about the Carbon Innovators Network here. here.
Carbon Management Principles: A set of Principles developed by EPA Victoria to guide carbon management strategies. They are, in order: Measure, Set objectives, Avoid, Reduce, Switch, SequesterThe uptake and storage of carbon from the atmosphere. For example trees and other plants sequester carbon dioxide from the atmosphere as they grow, through the process of photosynthesis., Assess and Offset. Find out more about the carbon management principlesA set of Principles developed by EPA Victoria to guide carbon management strategies. They are, in order: Measure, Set objectives, Avoid, Reduce, Switch, Sequester, Assess and Offset. Find out more about the carbon management principles here. here.
Carbon neutral: A voluntary mechanism where an activity, event, household, business or organisation is responsible for no net emissions of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). and can therefore be declared carbon neutralA voluntary mechanism where an activity, event, household, business or organisation is responsible for no net emissions of greenhouse gases and can therefore be declared carbon neutral in that specific area. Carbon neutrality can be achieved by reducing emissions as far as possible (e.g. energy efficiency, purchasing renewable energy) and then purchasing offsets for any residual emissions in order to achieve zero net emissions. in that specific area. Carbon neutrality can be achieved by reducing emissions as far as possible (e.g. energy efficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. , purchasing renewable energy) and then purchasing offsets for any residual emissions in order to achieve zero net emissions.
Carbon Neutral Program: The Carbon Neutral ProgramThe Carbon Neutral Program utilising the National Carbon Offset Standard officially commences on 1 July 2010. This Program is the successor to the Australian Government’s Greenhouse Friendly™ initiative (2001 – 2010). The Carbon Neutral Program is a voluntary scheme which certifies products or business operations as carbon neutral. The National Carbon Offset Standard, developed by the Australian government, underpins the integrity of the Program. utilising the National Carbon Offset Standard officially commences on 1 July 2010. This Program is the successor to the Australian Government’s Greenhouse Friendly™ initiative (2001 – 2010). The Carbon NeutralA voluntary mechanism where an activity, event, household, business or organisation is responsible for no net emissions of greenhouse gases and can therefore be declared carbon neutral in that specific area. Carbon neutrality can be achieved by reducing emissions as far as possible (e.g. energy efficiency, purchasing renewable energy) and then purchasing offsets for any residual emissions in order to achieve zero net emissions. Program is a voluntary scheme which certifies products or business operations as carbon neutral. The National Carbon Offset Standard, developed by the Australian government, underpins the integrity of the Program.
Carbon offset: A carbon offset is an investment in a project or activity that reduces greenhouse gas (GHGGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6).) emissions or sequesters carbon from the atmosphere that is used to compensate for GHG emissions from your own activities. For more information see here.
Carbon Pollution Reduction Scheme (CPRS): Australia's cap and tradeA term used to describe an emissions trading system, where total emissions are limited or 'capped'. Permits are issued up to that cap, and a market allows those participants emitting less than the quota to sell their excess permits to emitters needing to buy extra permits to meet their quota. scheme which will come in to effect in 2010. The CPRSAustralia's cap and trade scheme which will come in to effect in 2010. The CPRS will place a limit, or cap, on the amount of carbon pollution industry can emit and allow trading of carbon credits. It will concentrate on the biggest polluters, by placing obligations on around 1000 Australian companies in total. However it will effect all Australians through indirect price increases. will place a limit, or cap, on the amount of carbon pollution industry can emit and allow trading of carbon credits. It will concentrate on the biggest polluters, by placing obligations on around 1000 Australian companies in total. However it will effect all Australians through indirect price increases.
Carbon price: An economic value placed on the emission of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). into the atmosphere from human activity. This price is designed to create an incentive to avoid emitting. A carbon priceAn economic value placed on the emission of greenhouse gases into the atmosphere from human activity. This price is designed to create an incentive to avoid emitting. A carbon price is usually derived from either a carbon tax or a price under an ETS. is usually derived from either a carbon taxA tax on greenhouse gas emissions that leads to a carbon price. or a price under an ETSAn ETS is an organised system of emissions trading that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gases it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and trade and baseline and credit..
Carbon tax: A tax on greenhouse gas emissions that leads to a carbon priceAn economic value placed on the emission of greenhouse gases into the atmosphere from human activity. This price is designed to create an incentive to avoid emitting. A carbon price is usually derived from either a carbon tax or a price under an ETS..
Carbon Trading: A term used to describe an ETSAn ETS is an organised system of emissions trading that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gases it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and trade and baseline and credit. involving greenhouse gas emissions.
CCB Standards: The standard focuses exclusively on bio-sequestration (forestry) projects and emphasizes the social and environmental benefits of such projects. CCBS is a project design standard and offers rules and guidance for project design and development. For more information, see here.
CCS: Carbon capture and storageCarbon capture and storage (CCS) or geosequestration involves capture, transport, injection and long-term storage of GHGs in underground geological formations for the primary purpose of mitigating greenhouse gas emissions. (CCS) or geosequestrationAlso known as carbon capture and storage (CCS), geosequestration is the process of capture, transport, injection and long-term storage of CO2 in underground geological formations for the primary purpose of mitigating greenhouse gas emissions. involves capture, transport, injection and long-term storage of GHGs in underground geological formations for the primary purpose of mitigating greenhouse gas emissions.
CCX: Chicago Climate ExchangeChicago Climate Exchange is a US-based financial institution that operates a voluntary carbon trading programme. Find out more here. is a US-based financial institution that operates a voluntary carbon tradingA term used to describe an ETS involving greenhouse gas emissions. programme. Find out more here.
CDM: Clean Development MechanismClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. is a Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERsCertified Emission Reductions are credits generated under Kyoto's CDM. One CER unit is equivalent to the reduction of one metric tonne of CO2e. They are designed to be used by industrialised countries to count towards meeting their Kyoto targets. They can also be used as part of domestic targets, for example EU companies and governments use them as offsets against their emissions under the EU Emissions Trading Scheme.. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here.
CERs: Certified Emission ReductionsCertified Emission Reductions are credits generated under Kyoto's CDM. One CER unit is equivalent to the reduction of one metric tonne of CO2e. They are designed to be used by industrialised countries to count towards meeting their Kyoto targets. They can also be used as part of domestic targets, for example EU companies and governments use them as offsets against their emissions under the EU Emissions Trading Scheme. are credits generated under Kyoto's CDMClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here.. One CER unit is equivalent to the reduction of one metric tonne of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2.. They are designed to be used by industrialised countries to count towards meeting their Kyoto targets. They can also be used as part of domestic targets, for example EU companies and governments use them as offsets against their emissions under the EU Emissions TradingUsually means an ETS. In relation to the Kyoto Protocol, Annex I countries can trade emissions reduction credits in order to comply with their Kyoto-assigned targets. (See also ETS.) Scheme.
CFL: Compact fluorescent lampsCompact fluorescent lamps use less power and have a longer rated life than incandescent light bulbs and therefore use less energy across their lifecycle. use less power and have a longer rated life than incandescent light bulbs and therefore use less energy across their lifecycle.
Chlorofluorocarbons (CFC's): Chemical substances containing carbon and fluorine. Prior to 1990 these were used widely in a range of technologies, such as a propellant gas for sprays and refrigeration. They can deplete the ozone layer and also contribute to global warming.
Clean coal: Refers to types or aspects of coal-fired electricity production, which is purported to have a reduced impact on the environment. For example flue gases can be treated with steam with the purpose of removing sulfur dioxide, and reburned so as to make the carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. in the flue gas economically recoverable.
CO₂e: Carbon dioxide equivalentCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2.. In order to compare emissions between the six Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). they have been assigned a global warming potentialGlobal warming potential (GWP) measured in CO₂e, is the potency of greenhouse gases, meaning their ability to trap heat in the atmosphere, through the difference in time greenhouse gases remain in the atmosphere, and their effectiveness in absorbing outgoing infrared radiation. The GWP is a numerical measure relative to carbon dioxide, the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1 and, for example, methane has a GWP of 21. (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methaneMethane (CH4) is a greenhouse gas with a GWP of 21. has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2.
Coal seam gas (CSG): Occurring naturally within coal deposits, this gas is largely composed of methaneMethane (CH4) is a greenhouse gas with a GWP of 21. , which is also the principal component of natural gas.
Composting: The natural biological decomposition of solid organic wastes such as food scraps, paper and lawn clippings, creating a soil-like substance called humus, which can be used instead of artificial fertilisers. The decomposition process produces methaneMethane (CH4) is a greenhouse gas with a GWP of 21. and carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature., therefore when compostingThe natural biological decomposition of solid organic wastes such as food scraps, paper and lawn clippings, creating a soil-like substance called humus, which can be used instead of artificial fertilisers. The decomposition process produces methane and carbon dioxide, therefore when composting occurs in controlled areas these greenhouse gases can be prevented from entering the atmosphere. Composting also reduces the amount of waste going to landfill. occurs in controlled areas these greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). can be prevented from entering the atmosphere. Composting also reduces the amount of waste going to landfillA hole in the ground where domestic waste and waste products from industry are put and covered with soil. .
CRS: Origin Energy's Carbon Reduction SchemeOrigin Energy's Carbon Reduction Scheme is an offsetting scheme that draws upon existing mandatory and voluntary frameworks. For more information see here. is an offsetting scheme that draws upon existing mandatory and voluntary frameworks. For more information see here.
DEFRA: UK Government Department for Environment, Food and Rural AffairsUK Government Department for Environment, Food and Rural Affairs. For more information see here.. For more information see here.
Double counting: Double countingDouble counting can happen when two or more businesses claim the same emissions reduction. This can happen if an offset is sold to two or more entities, or when an entity upstream of the project unknowingly claims the reduction as its own. The establishment of protocols, and the use of an offsets registry can ensure offsets are adequately accounted for. can happen when two or more businesses claim the same emissions reductionA measurable reduction in the level of greenhouse gases being emitted by a country, state, organisation or individual. . This can happen if an offset is sold to two or more entities, or when an entity upstream of the project unknowingly claims the reduction as its own. The establishment of protocols, and the use of an offsets registry can ensure offsets are adequately accounted for.
Double selling: Double selling occurs when a carbon offset is either sold by the producer and or retailerCarbon offset retailers either fund or purchase carbon offsets in large quantities and then on sell them to individual consumers in smaller quantities. to more than one buyer. Therefore the emission reductions do not account for the total amount of emissions reductions the buyers have paid for.
Emissions Reductions: A measurable reduction in the level of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). being emitted by a country, state, organisation or individual.
Emissions Trading: Usually means an ETSAn ETS is an organised system of emissions trading that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gases it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and trade and baseline and credit.. In relation to the Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008., Annex I countries can trade emissions reductionA measurable reduction in the level of greenhouse gases being emitted by a country, state, organisation or individual. credits in order to comply with their Kyoto-assigned targets. (See also ETS.)
Energy efficiency (EE): Energy efficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity.
Energy Saver Incentive Scheme: Energy Saver Incentive is the public name for the Victorian Energy EfficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Target (VEETThe Victorian Energy Efficiency Target (VEET) is the target within the Energy Saver Incentive, the mandatory energy efficiency target scheme in Victoria that commenced on 1 January 2009. The legislative requirement is administered by the Essential Services Commission, while compliance is placed on energy retailers through the Victorian Energy Efficiency Target Act 2007.)
EPA Victoria: Environment Protection Authority Victoria. For more information see here.
ERU: An Emission Reduction UnitAn Emission Reduction Unit is a Kyoto Protocol unit equal to 1 metric tonne of CO2e. ERUs are generated from activities to reduce greenhouse emissions from the joint implementation mechanism under the Kyoto Protocol. is a Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. unit equal to 1 metric tonne of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2.. ERUs are generated from activities to reduce greenhouse emissions from the joint implementation mechanism under the Kyoto Protocol.
ESC: Energy Saving Certificate. ESCs are created under the NSW Energy Saving SchemeEnergy Saving Scheme. The Energy Savings Scheme ('the Scheme') is a NSW-based mandatory energy efficiency scheme.. The Scheme commenced on 1 July 2009 with an energy efficiency target of 0.4 per cent of total electricity sales, which will increase to 4 per cent in 2014. Liable parties can either create certificates themselves or purchase certificates from other parties. (EES). These are measured in tonnes of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2..
ESC: Essential Services Commission. ESCEnergy Saving Certificate. ESCs are created under the NSW Energy Saving Scheme (EES). These are measured in tonnes of CO2e. operates the Victorian Energy EfficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Target (VEETThe Victorian Energy Efficiency Target (VEET) is the target within the Energy Saver Incentive, the mandatory energy efficiency target scheme in Victoria that commenced on 1 January 2009. The legislative requirement is administered by the Essential Services Commission, while compliance is placed on energy retailers through the Victorian Energy Efficiency Target Act 2007.) scheme and its registry.
ESS: Energy Saving SchemeEnergy Saving Scheme. The Energy Savings Scheme ('the Scheme') is a NSW-based mandatory energy efficiency scheme.. The Scheme commenced on 1 July 2009 with an energy efficiency target of 0.4 per cent of total electricity sales, which will increase to 4 per cent in 2014. Liable parties can either create certificates themselves or purchase certificates from other parties. . The Energy Savings Scheme ('the Scheme') is a NSW-based mandatory energy efficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. scheme.. The Scheme commenced on 1 July 2009 with an energy efficiency target of 0.4 per cent of total electricity sales, which will increase to 4 per cent in 2014. Liable parties can either create certificates themselves or purchase certificates from other parties.
ETS: An ETSAn ETS is an organised system of emissions trading that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gases it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and trade and baseline and credit. is an organised system of emissions tradingUsually means an ETS. In relation to the Kyoto Protocol, Annex I countries can trade emissions reduction credits in order to comply with their Kyoto-assigned targets. (See also ETS.) that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and tradeA term used to describe an emissions trading system, where total emissions are limited or 'capped'. Permits are issued up to that cap, and a market allows those participants emitting less than the quota to sell their excess permits to emitters needing to buy extra permits to meet their quota. and baseline and credit.
EUA: European Union AllowancesEuropean Union Allowances. Units of carbon reduction created under the European Union Emission Trading Scheme (EU ETS). Under the EU ETS, the governments of the EU Member States agree on national emission caps which have to be approved by the EU commission, allocate allowances to their industrial operators, track and validate the actual emissions in accordance against the relevant assigned amount, and require the allowances to be retired after the end of each year. The operators within the ETS may reassign or trade their allowances by several means. Units of carbon reduction created under the European Union Emission Trading Scheme (EU ETSAn ETS is an organised system of emissions trading that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gases it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and trade and baseline and credit.). Under the EU ETS, the governments of the EU Member States agree on national emission caps which have to be approved by the EU commission, allocate allowances to their industrial operators, track and validate the actual emissions in accordance against the relevant assigned amount, and require the allowances to be retired after the end of each year. The operators within the ETS may reassign or trade their allowances by several means
Exercise price: Generally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual., the trade will be at the exercise priceGenerally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatement, the trade will be at the exercise price, regardless of the spot price (market price) at that time. See also strike price., regardless of the spot priceThe spot price or spot rate of an offset product is the price that is quoted for immediate (spot) settlement (payment and delivery) for commodity (e.g. carbon offsets). Spot settlement is normally one or two business days from trade date. This is in contrast with the forward price established in a forward contract or futures contract, where contract terms (price) are set now, but delivery and payment will occur at a future date. (market price) at that time. See also strike priceGenerally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatement, the trade will be at the strike price, regardless of the spot price (market price) at that time. See also exercise price..
Forward contract: A forward contractA forward contract is an agreement between two parties to buy or sell an asset (e.g. carbon offsets) at a specified point of time in the future. The price of the abatement is paid before the asset changes hands. is an agreement between two parties to buy or sell an asset (e.g. carbon offsets) at a specified point of time in the future. The price of the abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. is paid before the asset changes hands.
Forward crediting: The buyer pays for and receives a certain number of offsets for emissions reductions or sequestration that will occur in the future. See also Forward sellThe sale of carbon offsets for emissions reductions or sequestration that have not yet occurred and therefore can not be precisely measured..
Forward delivery: The buyer pays the purchase price for a certain number of offsets that have yet to be produced. The offsets will be delivered to the buyer once they have been realised and verified.
Forward price: The forward priceThe forward price (or sometimes forward rate) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract. (or sometimes forward rateThe forward rate (or forward price) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract.) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contractA forward contract is an agreement between two parties to buy or sell an asset (e.g. carbon offsets) at a specified point of time in the future. The price of the abatement is paid before the asset changes hands..
Forward purchases: The buyer invests the money upfront but does not get the credits until they are actually produced. These are long-term commitments that are predominantly done on a large scale.
Forward rate: The forward rateThe forward rate (or forward price) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract. (or forward priceThe forward price (or sometimes forward rate) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract.) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contractA forward contract is an agreement between two parties to buy or sell an asset (e.g. carbon offsets) at a specified point of time in the future. The price of the abatement is paid before the asset changes hands..
Forward sell: The sale of carbon offsets for emissions reductions or sequestration that have not yet occurred and therefore can not be precisely measured.
Fossil fuels: Fossil fuels are non-renewable sources of energy formed from fossilised organic matter. Coal, oil and natural gas are the most widely used fossil fuels in energy production. Most of Australia's primary energy is derived from fossil fuels.
Fugitive emissions: Fugitive greenhouse gas emissions are waste or loss in the process of fuel production, storage, or transport, such as methaneMethane (CH4) is a greenhouse gas with a GWP of 21. given off during oil and gas drilling and refining, or leakageIn relation to carbon offsets, leakage is the direct or indirect increase in GHG emissions from a greenhouse gas reduction project, which is also measurable and attributable to the project. of natural gas from pipelines.
Full fuel cycle emissions factors: Gives the quantity of emissions released per unit of energy for the entire fuel production and consumption chain. This term is used in the National Greenhouse Accounts FactorsThe National Greenhouse Accounts (NGA) Factors is an Australian guide to emission factors from a range of sectors that is used by companies to calculate greenhouse gases. It is prepared by the Department of Climate Change and replaces the AGO Factors & Methods Workbook. For more information, see here. but is not used in the GHG ProtocolThe Greenhouse Gas Protocol. The GHG Protocol is an international accounting tool for government and business to understand, quantify, and manage greenhouse gas emissions. It has been developed by a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) and provides an internationally accepted accounting framework for GHG standards and programs, as well as inventories prepared by individual companies..
Fungibility: In relation to carbon offsets, fungibilityIn relation to carbon offsets, fungibility is the interchangeability of a carbon credit or permit between certification schemes or programs. is the interchangeability of a carbon credit or permit between certification schemes or programs.
Futures contract: A futures contractA futures contract is a standardized contract, to buy or sell a specified commodity (e.g. carbon offsets) at a certain date in the future, at a market determined price (the futures price). A futures contract gives the holder the obligation to make or take delivery under the terms of the contract, whereas an option grants the buyer the right, but not the obligation. is a standardized contract, to buy or sell a specified commodity (e.g. carbon offsets) at a certain date in the future, at a market determined price (the futures price). A futures contract gives the holder the obligation to make or take delivery under the terms of the contract, whereas an optionIn finance, an option is a contract between a buyer and a seller that gives the buyer the right—but not the obligation—to buy or to sell offsets at a later day at an agreed price. In return for granting the option, the seller collects a payment from the buyer. A call option gives the buyer the right to buy the offset / credit; a put option gives the buyer of the option the right to sell the offset / credit. grants the buyer the right, but not the obligation.
Futures exchange: A central financial exchange where people can trade standardized futures contracts; that is, a contract to buy specific quantities of a commodity (e.g. carbon offsets) at a specified price with delivery set at a specified time in the future.
Geosequestration: Also known as carbon capture and storageCarbon capture and storage (CCS) or geosequestration involves capture, transport, injection and long-term storage of GHGs in underground geological formations for the primary purpose of mitigating greenhouse gas emissions. (CCS), geosequestrationAlso known as carbon capture and storage (CCS), geosequestration is the process of capture, transport, injection and long-term storage of CO2 in underground geological formations for the primary purpose of mitigating greenhouse gas emissions. is the process of capture, transport, injection and long-term storage of CO2A greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. in underground geological formations for the primary purpose of mitigating greenhouse gas emissions.
GGAS: See The NSW Greenhouse Gas Abatement SchemeNew South Wales Greenhouse Gas Abatement Scheme commenced on 1 January 2003 and targets are set until 2012. It is one of the first mandatory greenhouse gas emissions trading schemes in the world. GGAS aims to reduce greenhouse gas emissions associated with the production and use of electricity. For more information see here.
GHG (Greenhouse Gases): Greenhouse GasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. (CO2), methaneMethane (CH4) is a greenhouse gas with a GWP of 21. (CH4), nitrous oxideAgriculture accounts for the majority of nitrous oxide (N2O) emissions in Australia, The transport sector also contributes to emissions of N2O. N2O has a high global warming potential of about 310 times that of CO2.it breaks down very slowly – over about 120 years (N2O), HFCs (hydrofluorocarbonsMajor releases of HFCs are from leakage from refrigeration equipment during operation and its end-of-life destruction. Minor releases arise from the use of HFC-containing aerosols, air conditioners and metered dose inhalers.HFCs have very high global warming potentials (140 to 11,700 times that of carbon dioxide).), PFCsMost emissions of PFCs in Australia are generated during aluminium production. PFCs have extremely high global warming potentials (5000 to 10,000 times that of carbon dioxide). However, because they are only released in relatively small amounts, their contribution to global warming is minor. Due to their stability they have very long atmospheric lifetimes (thousands of years). (perfluorocarbons) and sulphur hexafluoride (SF6Sulphur hexafluoride (SF6) is a man-made chemical. The major sources of SF6 release include leakage from electrical switchgear, from magnesium smelting processes and use in semiconductor manufacture. It has by far the highest global warming potential (23,900 times that of carbon dioxide), however it is only released in relatively small amounts.).
GHG Protocol: The Greenhouse Gas Protocol. The GHG ProtocolThe Greenhouse Gas Protocol. The GHG Protocol is an international accounting tool for government and business to understand, quantify, and manage greenhouse gas emissions. It has been developed by a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) and provides an internationally accepted accounting framework for GHG standards and programs, as well as inventories prepared by individual companies. is an international accounting tool for government and business to understand, quantify, and manage greenhouse gas emissions. It has been developed by a partnership between the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) and provides an internationally accepted accounting framework for GHG standards and programs, as well as inventories prepared by individual companies.
Gold Standard: A certification standard for carbon offset projects. Initiated by WWF, SSN and Helio International, the Gold StandardA certification standard for carbon offset projects. Initiated by WWF, SSN and Helio International, the Gold Standard for CDM projects was launched in 2003 after wide-ranging stakeholder consultation among key actors of the carbon market as well as governments. For more information see here. for CDMClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. projects was launched in 2003 after wide-ranging stakeholder consultation among key actors of the carbon market as well as governments. For more information see here.
Gold Standard VER: Is a certification standard for carbon offset projects, specifically aimed at small scale projects. (See Gold StandardA certification standard for carbon offset projects. Initiated by WWF, SSN and Helio International, the Gold Standard for CDM projects was launched in 2003 after wide-ranging stakeholder consultation among key actors of the carbon market as well as governments. For more information see here. above). For more information see here.
Greenhouse effect: The greenhouse effectThe greenhouse effect is a term that describes how natural gases in the earth's atmosphere allow the infrared radiation in to warm the earth's surface, but also prevent much of the heat escaping from the earth into the atmosphere. The problem we now face is that human actions are increasing the concentrations of these gases, creating the prospect of global climate change. is a term that describes how natural gases in the earth's atmosphere allow the infrared radiation in to warm the earth's surface, but also prevent much of the heat escaping from the earth into the atmosphere. The problem we now face is that human actions are increasing the concentrations of these gases, creating the prospect of global climate change.
Greenhouse Friendly: Greenhouse FriendlyGreenhouse Friendly 'The Greenhouse Friendly™ initiative has been operating since 2001 to certify carbon neutral products and services and approve abatement credits for sale on the voluntary market, including to Greenhouse Friendly™ certified product and service providers. Introduction of the Carbon Pollution Reduction Scheme (the Scheme) has implications for Greenhouse Friendly™. The Scheme will have broad sectoral coverage, which means there will be less scope to pursue offset activities with offsets limited to emissions sources uncovered by the Scheme. This means the Scheme will impact on the types of abatement that can be provided, because abatement in sectors covered by the Scheme will no longer be additional to “business as usual”. For these reasons Greenhouse Friendly™ will wind up on 1 July 2010. Greenhouse Friendly™ certification of carbon neutral products and services will continue to operate until 1 July 2010. Applications for new abatement projects have closed. Abatement may be generated by current Greenhouse Friendly™ abatement providers up to 1 July 2010, and may still be sold and purchased after that date. 'The Greenhouse Friendly™ initiative has been operating since 2001 to certify carbon neutralA voluntary mechanism where an activity, event, household, business or organisation is responsible for no net emissions of greenhouse gases and can therefore be declared carbon neutral in that specific area. Carbon neutrality can be achieved by reducing emissions as far as possible (e.g. energy efficiency, purchasing renewable energy) and then purchasing offsets for any residual emissions in order to achieve zero net emissions. products and services and approve abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. credits for sale on the voluntary market, including to Greenhouse Friendly™ certified product and service providers. Introduction of the Carbon Pollution Reduction SchemeAustralia's cap and trade scheme which will come in to effect in 2010. The CPRS will place a limit, or cap, on the amount of carbon pollution industry can emit and allow trading of carbon credits. It will concentrate on the biggest polluters, by placing obligations on around 1000 Australian companies in total. However it will effect all Australians through indirect price increases. (the Scheme) has implications for Greenhouse Friendly™. The Scheme will have broad sectoral coverage, which means there will be less scope to pursue offset activities with offsets limited to emissions sources uncovered by the Scheme. This means the Scheme will impact on the types of abatement that can be provided, because abatement in sectors covered by the Scheme will no longer be additional to “business as usual”. For these reasons Greenhouse Friendly™ will wind up on 1 July 2010. Greenhouse Friendly™ certification of carbon neutral products and services will continue to operate until 1 July 2010. Applications for new abatement projects have closed. Abatement may be generated by current Greenhouse Friendly™ abatement providers up to 1 July 2010, and may still be sold and purchased after that date.
GreenPower standard: An accreditation standard for Australian renewable energy operated collaboratively by Australian governments. To be eligible for the GreenPower StandardAn accreditation standard for Australian renewable energy operated collaboratively by Australian governments. To be eligible for the GreenPower Standard a company must demonstrate that the renewable energy sources meet strict environmental standards and comes from a new renewable energy facility that was built since January 1997. Renewable resources eligible for the GreenPower Standard include solar power, wind, biomass, hydro-electric power, geothermal energy and wave and tidal power. For more information, see here. a company must demonstrate that the renewable energy sources meet strict environmental standards and comes from a new renewable energy facility that was built since January 1997. Renewable resources eligible for the GreenPower Standard include solar power, wind, biomassBiomass is non-fossilized and organic biodegradable material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter grown for use as Biofuels, but it also includes plant or animal matter used for production of fibres, chemicals or heat. Biomass may also include biodegradable wastes that can be burnt as fuel. , hydro-electric power, geothermal energy and wave and tidal power. For more information, see here.
GS: Global Sustainability @ RMIT University. For more information see here.
GWP: Global warming potentialGlobal warming potential (GWP) measured in CO₂e, is the potency of greenhouse gases, meaning their ability to trap heat in the atmosphere, through the difference in time greenhouse gases remain in the atmosphere, and their effectiveness in absorbing outgoing infrared radiation. The GWP is a numerical measure relative to carbon dioxide, the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1 and, for example, methane has a GWP of 21. (GWP) measured in CO₂eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2., is the potency of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6)., meaning their ability to trap heat in the atmosphere, through the difference in time greenhouse gases remain in the atmosphere, and their effectiveness in absorbing outgoing infrared radiation. The GWP is a numerical measure relative to carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature., the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1 and, for example, methaneMethane (CH4) is a greenhouse gas with a GWP of 21. has a GWP of 21.
Hedge: In finance, a hedgeIn finance, a hedge is a position established in one market in an attempt to balance exposure to the price risk another obligation. is a position established in one market in an attempt to balance exposure to the price risk another obligation.
Hedging: HedgingHedging is a strategy designed to minimize exposure to such business risks as changing prices for commodities (e.g. carbon offsets). is a strategy designed to minimize exposure to such business risks as changing prices for commodities (e.g. carbon offsets).
Hydrofluorocarbons (HFCs): Major releases of HFCsMajor releases of HFCs are from leakage from refrigeration equipment during operation and its end-of-life destruction. Minor releases arise from the use of HFC-containing aerosols, air conditioners and metered dose inhalers.HFCs have very high global warming potentials (140 to 11,700 times that of carbon dioxide). are from leakageIn relation to carbon offsets, leakage is the direct or indirect increase in GHG emissions from a greenhouse gas reduction project, which is also measurable and attributable to the project. from refrigeration equipment during operation and its end-of-life destruction. Minor releases arise from the use of HFC-containing aerosols, air conditioners and metered dose inhalers.HFCs have very high global warming potentials (140 to 11,700 times that of carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature.).
IPART: Independent Pricing and Regulatory TribunalIndependent Pricing and Regulatory Tribunal of New South Wales is an independent body that oversees regulation in the water, gas, electricity and public transport industries in NSW. of New South Wales is an independent body that oversees regulation in the water, gas, electricity and public transport industries in NSW.
IPCC: Intergovernmental Panel on Climate ChangeIntergovernmental Panel on Climate Change is an international scientific panel which informs the UNFCCC approximately every 5 years with the latest scientific, technical and socio-economic evidence on climate change. With representatives from 130 nations it is the world's pre-eminent scientific advisory body on climate change. is an international scientific panel which informs the UNFCCCThe United Nations Framework Convention on Climate Change was established in 1992 at the Rio Earth Summit and currently has 189 signatory countries. It is aimed at stabilising atmospheric concentrations of greenhouse gases. approximately every 5 years with the latest scientific, technical and socio-economic evidence on climate change. With representatives from 130 nations it is the world's pre-eminent scientific advisory body on climate change.
ISO 14000: ISO 14000ISO 14000 is a set of international standards, which provide a framework for the development of an environmental management system (EMS) and supporting audit programs. The ISO 14000 series are intended to help organisations comply with applicable laws, regulations and requirements and to continually improve on their environmental performance. is a set of international standards, which provide a framework for the development of an environmental management system (EMS) and supporting audit programs. The ISO 14000 series are intended to help organisations comply with applicable laws, regulations and requirements and to continually improve on their environmental performance.
ISO 14064: A global GHGGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). accounting, reporting and verification standard. The goal of the standard is to 'provide a set of unambiguous and verifiable requirements or specifications to support organisations and proponents of GHG emissions reductions projects.'
ISO 9001 and 14001: ISO 9001 (quality) and ISO 14001 (environment) are "generic management system standards". ISO 9001 contains a generic set of requirements for implementing a quality management system and ISO 14001 for an EMS. These two standards can be applied to any organisation.
ISO14065: ISO 14065 defines requirements for companies performing greenhouse gas validation and verification. The standard provides assessing organisations with a basis for assessing the competence of validation and verification companies.
ITL: International Transaction LogInternational Transaction Log is a centralized database of all tradable credits under the Kyoto Protocol, and is the application that verifies all international transactions and their compliance with Kyoto rules and policies. is a centralized database of all tradable credits under the Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008., and is the application that verifies all international transactions and their compliance with Kyoto rules and policies.
JI: The Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. Joint Implementation mechanism allows developed countries to earn credits in the form of Emission Reduction Units (ERUs) when they finance projects that reduce net greenhouse gas emissions in another developed country. For more information see here.
Kt: Kilotonnes = 1,000 tonnes.
Kyoto Protocol: An international agreement linked to the UNFCCCThe United Nations Framework Convention on Climate Change was established in 1992 at the Rio Earth Summit and currently has 189 signatory countries. It is aimed at stabilising atmospheric concentrations of greenhouse gases. and sharing its aim of stabilising atmospheric concentrations of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6)., but requiring separate ratification by governments. The Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008., among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008.
Kyoto Protocol Mechanisms: Three procedures established under the Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. to increase the flexibility and reduce the costs of making greenhouse-gas emissions cuts; they are the Clean Development MechanismClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. (CDM), Joint Implementation (JIThe Kyoto Protocol Joint Implementation mechanism allows developed countries to earn credits in the form of Emission Reduction Units (ERUs) when they finance projects that reduce net greenhouse gas emissions in another developed country. For more information see here.) and Emissions Trading.Usually means an ETS. In relation to the Kyoto Protocol, Annex I countries can trade emissions reduction credits in order to comply with their Kyoto-assigned targets. (See also ETS.) For more information, see here.
Landfill: A hole in the ground where domestic waste and waste products from industry are put and covered with soil.
Landfill Gas: The gas that is generated by the decomposition of waste in landfills.
Leakage: In relation to carbon offsets, leakageIn relation to carbon offsets, leakage is the direct or indirect increase in GHG emissions from a greenhouse gas reduction project, which is also measurable and attributable to the project. is the direct or indirect increase in GHGGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). emissions from a greenhouse gas reduction project, which is also measurable and attributable to the project.
Life Cycle Assessment (LCA): LCALCA is the investigation and valuation of the environmental, economic and social impacts of a product or service. A product’s life cycle starts when the raw materials are extracted from the earth through to processing, transport, use, reuse, recycling or disposal. For each of these stages, the impact is measured in terms of the resources used and environmental impacts caused. is the investigation and valuation of the environmental, economic and social impacts of a product or service. A product’s life cycle starts when the raw materials are extracted from the earth through to processing, transport, use, reuse, recycling or disposal. For each of these stages, the impact is measured in terms of the resources used and environmental impacts caused.
LPG: Liquefied Petroleum GasLiquefied Petroleum Gas is a mixture of hydrocarbon gases, used mostly in transport is a mixture of hydrocarbon gases, used mostly in transport
LULUCF: A Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. acronym that stands for human-induced 'Land Use, Land-Use Change and ForestryA Kyoto Protocol acronym that stands for human-induced 'Land Use, Land-Use Change and Forestry'. Some of these activities result in greenhouse emissions and some lead to greenhouse gases being removed from the atmosphere. For example, land clearing generates greenhouse gas emissions. Planting trees can lead to greenhouse gases being absorbed from the atmosphere. '. Some of these activities result in greenhouse emissions and some lead to greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). being removed from the atmosphere. For example, land clearing generates greenhouse gas emissions. Planting trees can lead to greenhouse gases being absorbed from the atmosphere.
Methane: MethaneMethane (CH4) is a greenhouse gas with a GWP of 21. (CH4) is a greenhouse gas with a GWPGlobal warming potential (GWP) measured in CO₂e, is the potency of greenhouse gases, meaning their ability to trap heat in the atmosphere, through the difference in time greenhouse gases remain in the atmosphere, and their effectiveness in absorbing outgoing infrared radiation. The GWP is a numerical measure relative to carbon dioxide, the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1 and, for example, methane has a GWP of 21. of 21.
Methane (from) coal: A by-product of the coal formation process. Coalmines are generally vented to ensure the safety of employees. MethaneMethane (CH4) is a greenhouse gas with a GWP of 21. can also be captured and then flared into the atmosphere, or burnt to generate energy.
Methane (from) landfill: Decomposting matter emits a range of gases including methaneMethane (CH4) is a greenhouse gas with a GWP of 21. . Methane emitted from landfills can be captured and then flared into the atmosphere, or burnt to generate energy
Methane (from) livestock: Certain types of animals release methaneMethane (CH4) is a greenhouse gas with a GWP of 21. , either directly or from manure. This can be captured and then flared into the atmosphere, or burnt to generate energy.
Micro-hydro: Hydroelectric power installations that typically produce up to 100 kW of power and are often installed in small dammed pools, at the top of a waterfall or on a river.
Monoculture: The practice of producing or growing one single crop over a wide area.
MRET: Mandatory Renewable Energy TargetMandatory Renewable Energy Target. The Australian Government has a policy commitment of a 20 percent share for renewable energy in Australia's electricity supply by 2020.. The Australian Government has a policy commitment of a 20 percent share for renewable energy in Australia's electricity supply by 2020.
NABERS: the National Australian Built Environment Rating System - is a national initiative managed by the NSW Department of Environment, Climate Change and Water. NABERSthe National Australian Built Environment Rating System - is a national initiative managed by the NSW Department of Environment, Climate Change and Water. NABERS is a performance-based rating system for existing buildings. NABERS rates a building on the basis of its measured operational impacts on the environment, and provides a simple indication of how well you are managing these environmental impacts compared with your peers and neighbours. is a performance-based rating system for existing buildings. NABERS rates a building on the basis of its measured operational impacts on the environment, and provides a simple indication of how well you are managing these environmental impacts compared with your peers and neighbours.
National Greenhouse Accounts Factors: The National Greenhouse Accounts (NGA) Factors is an Australian guide to emission factors from a range of sectors that is used by companies to calculate greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6).. It is prepared by the Department of Climate Change and replaces the AGOThe Australian Greenhouse Office has now been incorporated into the Department of Climate Change. Factors & Methods Workbook. For more information, see here.
NCAS: The National Carbon Accounting SystemThe National Carbon Accounting System tracks emissions (sources) and removals (sinks) of greenhouse gases from Australian land based systems. It underpins National Greenhouse Gas Inventory reporting, and provides a basis for emissions projections to assess progress towards meeting Australia's emissions target. tracks emissions (sources) and removals (sinksAny process which removes a greenhouse gas from the atmosphere. Major sinks include forests and other vegetation.) of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). from Australian land based systems. It underpins National Greenhouse Gas Inventory reporting, and provides a basis for emissions projections to assess progress towards meeting Australia's emissions target.
NCAT: The National Carbon Accounting ToolboxThe National Carbon Accounting Toolbox provides the tools for tracking greenhouse gas emissions and carbon stock changes from land use and management. provides the tools for tracking greenhouse gas emissions and carbon stock changes from land use and management.
NCOS: National Carbon Offset Standard. The National Carbon Offset Standard was released by the Commonwealth Government in November 2009, to come into effect on 1 July 2010 coinciding with the cessation of the Government’s Greenhouse FriendlyGreenhouse Friendly 'The Greenhouse Friendly™ initiative has been operating since 2001 to certify carbon neutral products and services and approve abatement credits for sale on the voluntary market, including to Greenhouse Friendly™ certified product and service providers. Introduction of the Carbon Pollution Reduction Scheme (the Scheme) has implications for Greenhouse Friendly™. The Scheme will have broad sectoral coverage, which means there will be less scope to pursue offset activities with offsets limited to emissions sources uncovered by the Scheme. This means the Scheme will impact on the types of abatement that can be provided, because abatement in sectors covered by the Scheme will no longer be additional to “business as usual”. For these reasons Greenhouse Friendly™ will wind up on 1 July 2010. Greenhouse Friendly™ certification of carbon neutral products and services will continue to operate until 1 July 2010. Applications for new abatement projects have closed. Abatement may be generated by current Greenhouse Friendly™ abatement providers up to 1 July 2010, and may still be sold and purchased after that date. program. It is intended to ensure that consumers have confidence in the voluntary carbon offset market and the integrity of the carbon offset and carbon neutralA voluntary mechanism where an activity, event, household, business or organisation is responsible for no net emissions of greenhouse gases and can therefore be declared carbon neutral in that specific area. Carbon neutrality can be achieved by reducing emissions as far as possible (e.g. energy efficiency, purchasing renewable energy) and then purchasing offsets for any residual emissions in order to achieve zero net emissions. products they purchase. It provides guidance to businesses who wish to make their organisation carbon neutral or develop carbon neutral products in a way that achieves emissions reductions, through the purchase and retirementIn the context of carbon offsets, this is the act of removing a carbon credit or permit from the market so that abatement cannot be traded any further. Retiring offsets helps to prevent the resale or reuse of offsets that have already been used. of carbon offsets that are beyond those achieved by the CPRSAustralia's cap and trade scheme which will come in to effect in 2010. The CPRS will place a limit, or cap, on the amount of carbon pollution industry can emit and allow trading of carbon credits. It will concentrate on the biggest polluters, by placing obligations on around 1000 Australian companies in total. However it will effect all Australians through indirect price increases. and achievement of Australia’s national emissions reduction targets.
NCOS compliant abatement: AbatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. that is compliant with the National Carbon Offset Standard. NCOS compliantAbatement that is compliant with the National Carbon Offset Standard. NCOS compliant abatement currently includes Certified Emissions Reductions (CERs) except long term (lCERs) and temporary (tCERs); Emission Reduction Units (ERUs); Removal Units (RMUs); Voluntary Emissions Reductions (VERs) issued by the Gold Standard*; Voluntary Carbon Units (VCUs) issued by the Voluntary Carbon Standard, however where VCU credits are issued for reduced emissions from deforestation and degradation (REDD) and other agriculture forestry and land use (AFOLU) projects, they must apply methodologies approved under the NCOS Standard. abatement currently includes Certified Emissions Reductions (CERsCertified Emission Reductions are credits generated under Kyoto's CDM. One CER unit is equivalent to the reduction of one metric tonne of CO2e. They are designed to be used by industrialised countries to count towards meeting their Kyoto targets. They can also be used as part of domestic targets, for example EU companies and governments use them as offsets against their emissions under the EU Emissions Trading Scheme.) except long term (lCERs) and temporary (tCERs); Emission Reduction Units (ERUs); Removal Units (RMUs); Voluntary Emissions Reductions (VERsVerified Emission Reductions or Voluntary Emissions Reductions are tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organisations and individuals wanting to offset their own emissions. VERs can be generated from projects to which a range of circumstances might apply, including:
- are either based in a country that has not ratified the Kyoto Protocol (e.g. USA) or does not have the infrastructure to support CDM project development;
- have not yet been registered under the CDM;
- fall outside the scope of the CDM;
- are too small to warrant the costs of CDM approval;
- are specifically developed for the voluntary market.) issued by the Gold StandardA certification standard for carbon offset projects. Initiated by WWF, SSN and Helio International, the Gold Standard for CDM projects was launched in 2003 after wide-ranging stakeholder consultation among key actors of the carbon market as well as governments. For more information see here.*; Voluntary Carbon Units (VCUs) issued by the Voluntary Carbon StandardThe VCS Program includes the standard (VCS 2007) and the Program Guidelines 2007. The VCS Program provides a new global standard and criteria for validating, measuring, and monitoring voluntary carbon offset projects. For more information, see here., however where VCU credits are issued for reduced emissions from deforestation and degradation (REDDReducing Emissions from Deforestation and Forest Degradation) and other agriculture forestry and land use (AFOLU) projects, they must apply methodologies approved under the NCOSNational Carbon Offset Standard. The National Carbon Offset Standard was released by the Commonwealth Government in November 2009, to come into effect on 1 July 2010 coinciding with the cessation of the Government’s Greenhouse Friendly program. It is intended to ensure that consumers have confidence in the voluntary carbon offset market and the integrity of the carbon offset and carbon neutral products they purchase. It provides guidance to businesses who wish to make their organisation carbon neutral or develop carbon neutral products in a way that achieves emissions reductions, through the purchase and retirement of carbon offsets that are beyond those achieved by the CPRS and achievement of Australia’s national emissions reduction targets. Standard.
NEM: National Electricity MarketNational Electricity Market. A wholesale market for the supply of electricity for most of Australia, Queensland, NSW, ACT, Victoria and South Australia.. A wholesale market for the supply of electricity for most of Australia, Queensland, NSW, ACT, Victoria and South Australia.
NGAC: New South Wales Greenhouse Gas Abatement CertificateNew South Wales Greenhouse Gas Abatement Certificate is a tradeable commodity used in the NSW GGAS. One NGAC represents the abatement of one tonne of CO2e associated with the consumption of electricity in NSW. NGACs are transferable certificates that may only be created by accredited abatement certificate providers. is a tradeable commodity used in the NSW GGASNew South Wales Greenhouse Gas Abatement Scheme commenced on 1 January 2003 and targets are set until 2012. It is one of the first mandatory greenhouse gas emissions trading schemes in the world. GGAS aims to reduce greenhouse gas emissions associated with the production and use of electricity. For more information see here. . One NGAC represents the abatement of one tonne of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2. associated with the consumption of electricity in NSW. NGACs are transferable certificates that may only be created by accredited abatement certificate providers.
NGAS: See NSW GGASNew South Wales Greenhouse Gas Abatement Scheme commenced on 1 January 2003 and targets are set until 2012. It is one of the first mandatory greenhouse gas emissions trading schemes in the world. GGAS aims to reduce greenhouse gas emissions associated with the production and use of electricity. For more information see here.
NGERS: The National Greenhouse and Energy Reporting SystemThe National Greenhouse and Energy Reporting System is based on the National Greenhouse and Energy Reporting Act 2007, which was passed on 29 September 2007. The Act establishes a mandatory reporting system for corporate greenhouse gas emissions and energy production and consumption. The Act commences on 1 July 2008. Further information is available at: http://www.greenhouse.gov.au/reporting/index.html is based on the National Greenhouse and Energy Reporting Act 2007, which was passed on 29 September 2007. The Act establishes a mandatory reporting system for corporate greenhouse gas emissions and energy production and consumption. The Act commences on 1 July 2008. Further information is available at: http://www.greenhouse.gov.au/reporting/index.html
NGO: Non-governmental organization (NGONon-governmental organization (NGO) is a term that has become widely accepted as referring to a legally constituted, non-governmental organization created by natural or legal persons with no participation or representation of any government. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status and excludes government representatives from membership in the organization.) is a term that has become widely accepted as referring to a legally constituted, non-governmental organization created by natural or legal persons with no participation or representation of any government. In the cases in which NGOs are funded totally or partially by governments, the NGO maintains its non-governmental status and excludes government representatives from membership in the organization.
NGPAP: National GreenPower Accreditation ProgramNational GreenPower Accreditation Program. The system used to issue GreenPower Standards. . The system used to issue GreenPower Standards.
Nitrous oxide: Agriculture accounts for the majority of nitrous oxideAgriculture accounts for the majority of nitrous oxide (N2O) emissions in Australia, The transport sector also contributes to emissions of N2O. N2O has a high global warming potential of about 310 times that of CO2.it breaks down very slowly – over about 120 years (N2O) emissions in Australia, The transport sector also contributes to emissions of N2O. N2O has a high global warming potentialGlobal warming potential (GWP) measured in CO₂e, is the potency of greenhouse gases, meaning their ability to trap heat in the atmosphere, through the difference in time greenhouse gases remain in the atmosphere, and their effectiveness in absorbing outgoing infrared radiation. The GWP is a numerical measure relative to carbon dioxide, the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1 and, for example, methane has a GWP of 21. of about 310 times that of CO2A greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature..it breaks down very slowly – over about 120 years
Not-for-profit: In the Carbon Offset Guide not-for-profitIn the Carbon Offset Guide not-for-profit entities must have appropriate legal status, which means that they must have a formal structure; be self-governing; be private; be non-profit-distributing; and have some meaningful degree of voluntary involvement. entities must have appropriate legal status, which means that they must have a formal structure; be self-governing; be private; be non-profit-distributing; and have some meaningful degree of voluntary involvement.
NSW GGAS: New South Wales Greenhouse Gas Abatement SchemeNew South Wales Greenhouse Gas Abatement Scheme commenced on 1 January 2003 and targets are set until 2012. It is one of the first mandatory greenhouse gas emissions trading schemes in the world. GGAS aims to reduce greenhouse gas emissions associated with the production and use of electricity. For more information see here. commenced on 1 January 2003 and targets are set until 2012. It is one of the first mandatory greenhouse gas emissions tradingUsually means an ETS. In relation to the Kyoto Protocol, Annex I countries can trade emissions reduction credits in order to comply with their Kyoto-assigned targets. (See also ETS.) schemes in the world. GGASSee The NSW Greenhouse Gas Abatement Scheme aims to reduce greenhouse gas emissions associated with the production and use of electricity. For more information see here.
Option: In finance, an optionIn finance, an option is a contract between a buyer and a seller that gives the buyer the right—but not the obligation—to buy or to sell offsets at a later day at an agreed price. In return for granting the option, the seller collects a payment from the buyer. A call option gives the buyer the right to buy the offset / credit; a put option gives the buyer of the option the right to sell the offset / credit. is a contract between a buyer and a seller that gives the buyer the right—but not the obligation—to buy or to sell offsets at a later day at an agreed price. In return for granting the option, the seller collects a payment from the buyer. A call optionA call option is a financial contract between two parties, the buyer and the seller of an abatement option. It is the option to buy abatement at a specified time in the future. The buyer of the option has the right, but not the obligation to buy an agreed quantity of abatement from the seller of the option at a certain time for a certain price (the strike price). The seller (or "writer") is obligated to sell the commodity (e.g. carbon offsets). The buyer pays a fee (called a premium) for this right. gives the buyer the right to buy the offset / credit; a put optionA put option gives the buyer of the option the right, established through a contract to sell the offset / credit. For put options, the abatement is sold at the strike price. gives the buyer of the option the right to sell the offset / credit.
ORER: The Office of the Renewable Energy RegulatorThe Office of the Renewable Energy Regulator is a statutory authority established to oversee the implementation of the Australian Government's mandatory renewable energy target (MRET). is a statutory authority established to oversee the implementation of the Australian Government's mandatory renewable energy targetMandatory Renewable Energy Target. The Australian Government has a policy commitment of a 20 percent share for renewable energy in Australia's electricity supply by 2020. (MRET).
PAS 2050: PAS 2050PAS 2050 is a product carbon footprinting standard. It provides a method for assessing the GHG emissions arising from products across their life cycle, from initial sourcing of raw materials through manufacture, transport, use and ultimately recycling or waste. The Carbon Trust and Defra co-sponsored the publication by the British Standards Institution of PAS 2050. is a product carbon footprinting standard. It provides a method for assessing the GHGGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). emissions arising from products across their life cycle, from initial sourcing of raw materials through manufacture, transport, use and ultimately recycling or waste. The Carbon Trust and DefraUK Government Department for Environment, Food and Rural Affairs. For more information see here. co-sponsored the publication by the British Standards Institution of PAS 2050.
PDD: A Project Design DocumentA Project Design Document is the official application drawn up by an entity applying for project approval under the Clean Development Mechanism (CDM). PDDs must be validated by an independent third party, then approved and registered by the CDM Executive Board before a project qualifies as a CER carbon credit earner. is the official application drawn up by an entity applying for project approval under the Clean Development MechanismClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. (CDM). PDDs must be validated by an independent third party, then approved and registered by the CDM Executive Board before a project qualifies as a CER carbon credit earner.
Perfluorocarbons (PFCs): Most emissions of PFCsMost emissions of PFCs in Australia are generated during aluminium production. PFCs have extremely high global warming potentials (5000 to 10,000 times that of carbon dioxide). However, because they are only released in relatively small amounts, their contribution to global warming is minor. Due to their stability they have very long atmospheric lifetimes (thousands of years). in Australia are generated during aluminium production. PFCs have extremely high global warming potentials (5000 to 10,000 times that of carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature.). However, because they are only released in relatively small amounts, their contribution to global warming is minor. Due to their stability they have very long atmospheric lifetimes (thousands of years).
Permit: In relation to carbon offsets, a permit is a legal permission authorising the holder to emit a defined quantity of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6).. Under an ETS a permit is equivalent to one tonne of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2.. If a company emits less greenhouse gases than authorised they can sell their permits within the trading scheme.
Photovoltaic (PV): PhotovoltaicPhotovoltaic cells are used in solar panels to convert sunlight directly into electricity. cells are used in solar panels to convert sunlight directly into electricity.
Plan Vivo System: An offset project method for small-scale community-based LULUCFA Kyoto Protocol acronym that stands for human-induced 'Land Use, Land-Use Change and Forestry'. Some of these activities result in greenhouse emissions and some lead to greenhouse gases being removed from the atmosphere. For example, land clearing generates greenhouse gas emissions. Planting trees can lead to greenhouse gases being absorbed from the atmosphere. projects with a focus on promoting sustainable development and improving rural livelihoods and ecosystems. For more information, see here.
Project developer: The person or organisation that set up an offset generating project for the purpose of selling carbon offsets and reducing greenhouse gas emissions.
Project developer: A person or organisation with the intention to develop greenhouse emissions reductions projects.
Prompt delivery: The buyer pays the agreed price for a specific number of offsets which have already been generated and are delivered to the buyer promptly.
Purchase for surrender: Carbon offsets are purchased and retired from the market by the offset provider.
Put option: A put optionA put option gives the buyer of the option the right, established through a contract to sell the offset / credit. For put options, the abatement is sold at the strike price. gives the buyer of the option the right, established through a contract to sell the offset / credit. For put options, the abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. is sold at the strike priceGenerally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatement, the trade will be at the strike price, regardless of the spot price (market price) at that time. See also exercise price..
Rainforest Alliance certification: Rainforest Alliance CertificationRainforest Alliance Certification Programs cover agriculture, forestry, tourism, and community conservation enterprises. The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behaviour. For more information, see here. Programs cover agriculture, forestry, tourism, and community conservation enterprises. The Rainforest Alliance works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behaviour. For more information, see here.
REC: Renewable Energy Certificates in Australia are issued by the Australian Government's Office of Renewable Energy Regulator. They are equivalent to one-megawatt hour of renewable electricity. RECsRenewable Energy Certificates in Australia are issued by the Australian Government's Office of Renewable Energy Regulator. They are equivalent to one-megawatt hour of renewable electricity. RECs can be bought and sold both by electricity retailers and by other businesses in order to meet the legal requirements of MRET. can be bought and sold both by electricity retailers and by other businesses in order to meet the legal requirements of MRETMandatory Renewable Energy Target. The Australian Government has a policy commitment of a 20 percent share for renewable energy in Australia's electricity supply by 2020..
REDD: Reducing Emissions from Deforestation and Forest Degradation
REES: Residential Energy EfficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Scheme. The REESResidential Energy Efficiency Scheme. The REES has been introduced by the SA State Government. Energy generators are required to meet residential energy efficiency targets by offering incentives to adopt energy saving measures. These include: installing more efficient lighting and showerheads, draught proofing, retiring second fridges, and upgrading to more efficient appliances. has been introduced by the SA State Government. Energy generators are required to meet residential energy efficiency targets by offering incentives to adopt energy saving measures. These include: installing more efficient lighting and showerheads, draught proofing, retiring second fridges, and upgrading to more efficient appliances.
Reforestation: The reestablishment of forest on land that was previously forested but converted to another use before 31.12.1989.
Renewable resources: A natural resource qualifies as a renewable resourceA natural resource qualifies as a renewable resource if it is replenished by natural processes at a rate comparable to its rate of consumption. Oxygen, fresh water, timber, and biomass can all be considered renewable resources. However they can become non-renewable resources if used at a rate greater than the environment's capacity to replenish them. if it is replenished by natural processes at a rate comparable to its rate of consumption. Oxygen, fresh water, timber, and biomassBiomass is non-fossilized and organic biodegradable material that can be used as fuel or for industrial production. Most commonly, biomass refers to plant matter grown for use as Biofuels, but it also includes plant or animal matter used for production of fibres, chemicals or heat. Biomass may also include biodegradable wastes that can be burnt as fuel. can all be considered renewable resources. However they can become non-renewable resources if used at a rate greater than the environment's capacity to replenish them.
Retailer: Carbon offset retailers either fund or purchase carbon offsets in large quantities and then on sell them to individual consumers in smaller quantities.
Retire: In the context of carbon offsets, this means to remove a carbon credit or permit from the market. As a result of retirementIn the context of carbon offsets, this is the act of removing a carbon credit or permit from the market so that abatement cannot be traded any further. Retiring offsets helps to prevent the resale or reuse of offsets that have already been used. those offsets cannot be traded any further. Retiring offsets is a means of regulating offsetting and preventing companies and individuals from selling or buying offsets that have already been used.
Retirement: In the context of carbon offsets, this is the act of removing a carbon credit or permit from the market so that abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. cannot be traded any further. Retiring offsets helps to prevent the resale or reuse of offsets that have already been used.
RFI: Radiative Forcing is the change in radiation received at the surface of the earth due to the emission of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6).. The Radiative Forcing Index calculates the impact non-CO2A greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. emissions have on the earth in terms of CO2. RFIRadiative Forcing is the change in radiation received at the surface of the earth due to the emission of greenhouse gases. The Radiative Forcing Index calculates the impact non-CO2 emissions have on the earth in terms of CO2. RFI is usually used in relation to aviation. is usually used in relation to aviation.
RMUs: Removal Units are carbon credits that are derived from LULUCFA Kyoto Protocol acronym that stands for human-induced 'Land Use, Land-Use Change and Forestry'. Some of these activities result in greenhouse emissions and some lead to greenhouse gases being removed from the atmosphere. For example, land clearing generates greenhouse gas emissions. Planting trees can lead to greenhouse gases being absorbed from the atmosphere. projects in industrialised countries that absorb carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature.. An RMU is equal to one metric tonne of CO₂eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2..
Sequester: The uptake and storage of carbon from the atmosphere. For example trees and other plants sequesterThe uptake and storage of carbon from the atmosphere. For example trees and other plants sequester carbon dioxide from the atmosphere as they grow, through the process of photosynthesis. carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature. from the atmosphere as they grow, through the process of photosynthesis.
Sinks: Any process which removes a greenhouse gas from the atmosphere. Major sinksAny process which removes a greenhouse gas from the atmosphere. Major sinks include forests and other vegetation. include forests and other vegetation.
SME: Small and medium businesses
Spot price: The spot priceThe spot price or spot rate of an offset product is the price that is quoted for immediate (spot) settlement (payment and delivery) for commodity (e.g. carbon offsets). Spot settlement is normally one or two business days from trade date. This is in contrast with the forward price established in a forward contract or futures contract, where contract terms (price) are set now, but delivery and payment will occur at a future date. or spot rate of an offset product is the price that is quoted for immediate (spot) settlement (payment and delivery) for commodity (e.g. carbon offsets). Spot settlement is normally one or two business days from trade date. This is in contrast with the forward priceThe forward price (or sometimes forward rate) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract. established in a forward contractA forward contract is an agreement between two parties to buy or sell an asset (e.g. carbon offsets) at a specified point of time in the future. The price of the abatement is paid before the asset changes hands. or futures contractA futures contract is a standardized contract, to buy or sell a specified commodity (e.g. carbon offsets) at a certain date in the future, at a market determined price (the futures price). A futures contract gives the holder the obligation to make or take delivery under the terms of the contract, whereas an option grants the buyer the right, but not the obligation., where contract terms (price) are set now, but delivery and payment will occur at a future date.
Spot trades: The purchase or sale of abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. (e.g. carbon offsets) for immediate delivery. Spot tradesThe purchase or sale of abatement (e.g. carbon offsets) for immediate delivery. Spot trades are settled "on the spot" (usually within one or two business days), as opposed to at a set date in the future. Futures transactions that expire in the current month are also considered spot trades. Spot trades are also known as "cash trades". Spot trades are the opposite of forward contracts. are settled "on the spot" (usually within one or two business days), as opposed to at a set date in the future. Futures transactions that expire in the current month are also considered spot trades. Spot trades are also known as "cash trades". Spot trades are the opposite of forward contracts.
Stationary energy emissions: Includes emissions from electricity generation and from fuels consumed in the manufacturing, construction and commercial sectors, and emissions from other sources like domestic heating.
Strike price: Generally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual., the trade will be at the strike priceGenerally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatement, the trade will be at the strike price, regardless of the spot price (market price) at that time. See also exercise price., regardless of the spot priceThe spot price or spot rate of an offset product is the price that is quoted for immediate (spot) settlement (payment and delivery) for commodity (e.g. carbon offsets). Spot settlement is normally one or two business days from trade date. This is in contrast with the forward price established in a forward contract or futures contract, where contract terms (price) are set now, but delivery and payment will occur at a future date. (market price) at that time. See also exercise priceGenerally refers to a fixed price in a contract between two parties. Where the contract requires delivery of the abatement, the trade will be at the exercise price, regardless of the spot price (market price) at that time. See also strike price..
Sulphur Hexafluoride: Sulphur hexafluoride (SF6Sulphur hexafluoride (SF6) is a man-made chemical. The major sources of SF6 release include leakage from electrical switchgear, from magnesium smelting processes and use in semiconductor manufacture. It has by far the highest global warming potential (23,900 times that of carbon dioxide), however it is only released in relatively small amounts.) is a man-made chemical. The major sources of SF6 release include leakageIn relation to carbon offsets, leakage is the direct or indirect increase in GHG emissions from a greenhouse gas reduction project, which is also measurable and attributable to the project. from electrical switchgear, from magnesium smelting processes and use in semiconductor manufacture. It has by far the highest global warming potentialGlobal warming potential (GWP) measured in CO₂e, is the potency of greenhouse gases, meaning their ability to trap heat in the atmosphere, through the difference in time greenhouse gases remain in the atmosphere, and their effectiveness in absorbing outgoing infrared radiation. The GWP is a numerical measure relative to carbon dioxide, the most abundant greenhouse gas. So carbon dioxide itself has a GWP of 1 and, for example, methane has a GWP of 21. (23,900 times that of carbon dioxideA greenhouse gas that is produced as a by-product of oil and gas production, burning fossil fuels and biomass, as well as from all animals, plants, and a number of other natural sources. Carbon dioxide is the principal anthropogenic greenhouse gas that affects the earth’s temperature.), however it is only released in relatively small amounts.
Supply chain: A network of retailers, distributors, transporters, storage facilities, and suppliers that participate in the production, delivery, and sale of a product to the consumer.
Surrender: In an ETSAn ETS is an organised system of emissions trading that can be applied within businesses, states, countries and also internationally. Through an ETS an organisation is allocated an allowance for the amount of greenhouse gases it is permitted to produce. These systems allow those who reduce emissions beyond their obligations to sell their excess emission capacity to others within the ETS who are unable to meet their own emission reduction targets. There are two broad types of emissions trading schemes, cap and trade and baseline and credit., countries or businesses are allocated carbon credits or permits, usually for a designated time frame. They must then surrenderIn an ETS, countries or businesses are allocated carbon credits or permits, usually for a designated time frame. They must then surrender one carbon credit for each tonne of carbon dioxide equivalent (CO2e) emitted within the relevant time frame. This ensures the credits are not double-counted. one carbon credit for each tonne of carbon dioxide equivalentCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2. (CO2e) emitted within the relevant time frame. This ensures the credits are not double-counted.
T: Tonne
tCO2e, MtCO2e: Tonnes of CO2e, and millions of tonnes of carbon dioxide equivalentCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2.. This is the metric measurement unit for greenhouse gas emissions.
Trader: Carbon offset traders purchase carbon offsets in bulk from project developers with the plan to sell the offsets to consumers in smaller quantities at a higher price.
UNFCCC: The United Nations Framework Convention on Climate ChangeThe United Nations Framework Convention on Climate Change was established in 1992 at the Rio Earth Summit and currently has 189 signatory countries. It is aimed at stabilising atmospheric concentrations of greenhouse gases. was established in 1992 at the Rio Earth Summit and currently has 189 signatory countries. It is aimed at stabilising atmospheric concentrations of greenhouse gasesGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6)..
VCS 2007: Is a certification standard for carbon offset projects. It provides a global standard for voluntary GHGGreenhouse Gases in the earth's atmosphere absorb and re-emit infrared radiation. The Kyoto Protocol lists six major greenhouse gases, which vary in their relative warming effect. The six gases are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), HFCs (hydrofluorocarbons), PFCs (perfluorocarbons) and sulphur hexafluoride (SF6). emission reduction and removal projects and their validation and verification.
VCU: Voluntary Carbon UnitVoluntary Carbon Unit. Description of carbon offset derived from accreditation to the Voluntary Carbon Standard (VCS) Program.. Description of carbon offset derived from accreditation to the Voluntary Carbon StandardThe VCS Program includes the standard (VCS 2007) and the Program Guidelines 2007. The VCS Program provides a new global standard and criteria for validating, measuring, and monitoring voluntary carbon offset projects. For more information, see here. (VCS) Program.
VEEC: Victorian Energy EfficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Certificates are created under the Victorian Energy Efficiency Target (VEETThe Victorian Energy Efficiency Target (VEET) is the target within the Energy Saver Incentive, the mandatory energy efficiency target scheme in Victoria that commenced on 1 January 2009. The legislative requirement is administered by the Essential Services Commission, while compliance is placed on energy retailers through the Victorian Energy Efficiency Target Act 2007.) scheme. One VEECVictorian Energy Efficiency Certificates are created under the Victorian Energy Efficiency Target (VEET) scheme. One VEEC is equal to 0.1 tonnes of CO2e of energy savings, which is accredited via a certificate system. Certificates are then surrendered to the scheme administrator to achieve compliance. Retailers will need to surrender a specific amount of certificates to ensure they are meeting their responsibilities for the overall reduction of greenhouse gas emissions. is equal to 0.1 tonnes of CO2eCarbon dioxide equivalent. In order to compare emissions between the six Kyoto Protocol greenhouse gases they have been assigned a global warming potential (GWP) measured in carbon dioxide equivalents to reflect their influence on warming the atmosphere. GWP is a relative scale, where CO2 = 1. The other gases are given a number based on their effect on the atmosphere relative to CO2. For example, methane has a GWP of 21, meaning it has 21 times the amount of heating capacity of CO2. of energy savings, which is accredited via a certificate system. Certificates are then surrendered to the scheme administrator to achieve compliance. Retailers will need to surrender a specific amount of certificates to ensure they are meeting their responsibilities for the overall reduction of greenhouse gas emissions.
VEET: The Victorian Energy EfficiencyEnergy efficiency improvements refer to a reduction in the energy used for a given service (heating, lighting, etc.) or level of activity. Such savings are generally achieved by substituting technologically more advanced equipment to produce the same level of end-use services (e.g. lighting, heating, motor drive) with less electricity. Target (VEETThe Victorian Energy Efficiency Target (VEET) is the target within the Energy Saver Incentive, the mandatory energy efficiency target scheme in Victoria that commenced on 1 January 2009. The legislative requirement is administered by the Essential Services Commission, while compliance is placed on energy retailers through the Victorian Energy Efficiency Target Act 2007.) is the target within the Energy Saver Incentive, the mandatory energy efficiency target scheme in Victoria that commenced on 1 January 2009. The legislative requirement is administered by the Essential Services Commission, while compliance is placed on energy retailers through the Victorian Energy Efficiency Target Act 2007.
VER: Verified Emission Reductions or Voluntary Emissions Reductions are tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organisations and individuals wanting to offset their own emissions. VERsVerified Emission Reductions or Voluntary Emissions Reductions are tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organisations and individuals wanting to offset their own emissions. VERs can be generated from projects to which a range of circumstances might apply, including:
- are either based in a country that has not ratified the Kyoto Protocol (e.g. USA) or does not have the infrastructure to support CDM project development;
- have not yet been registered under the CDM;
- fall outside the scope of the CDM;
- are too small to warrant the costs of CDM approval;
- are specifically developed for the voluntary market. can be generated from projects to which a range of circumstances might apply, including:
- are either based in a country that has not ratified the Kyoto ProtocolAn international agreement linked to the UNFCCC and sharing its aim of stabilising atmospheric concentrations of greenhouse gases, but requiring separate ratification by governments. The Kyoto Protocol, among other things, sets binding targets for the reduction of greenhouse-gas emissions by industrialized countries. It entered into force for ratifying countries in February 2006 and commits developed nations to collectively cut their greenhouse gas emissions by 5.2 per cent of 1990 levels by 2012. Came into force in Australia on 11 March 2008. (e.g. USA) or does not have the infrastructure to support CDMClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. project development;
- have not yet been registered under the CDM;
- fall outside the scope of the CDM;
- are too small to warrant the costs of CDM approval;
- are specifically developed for the voluntary market.
VER+: The VER PlusThe VER Plus (VER+) is a carbon offset standard and closely follows the Kyoto Protocol’s project-based mechanisms (CDM and JI). It does not focus on co-benefits. The VER+ standard was developed by TÜV SÜD, a Designated Operational Entity (DOE) for the validation and verification of CDM projects. It was designed for project developers who have projects that cannot be implemented under CDM yet who want to use very similar procedures as the CDM. The VER Plus was launched in mid 2007. (VERVerified Emission Reductions or Voluntary Emissions Reductions are tradable credits for greenhouse emission reduction activities generated to meet voluntary demand for carbon credits by organisations and individuals wanting to offset their own emissions. VERs can be generated from projects to which a range of circumstances might apply, including:
- are either based in a country that has not ratified the Kyoto Protocol (e.g. USA) or does not have the infrastructure to support CDM project development;
- have not yet been registered under the CDM;
- fall outside the scope of the CDM;
- are too small to warrant the costs of CDM approval;
- are specifically developed for the voluntary market.+) is a carbon offset standard and closely follows the Kyoto Protocol’s project-based mechanisms (CDMClean Development Mechanism is a Kyoto Protocol mechanism under which projects set up in developing countries to reduce GHGs generate tradeable credits called CERs. The credits can be used by industrialised nations to help meet their Kyoto reduction targets. Find out more here. and JIThe Kyoto Protocol Joint Implementation mechanism allows developed countries to earn credits in the form of Emission Reduction Units (ERUs) when they finance projects that reduce net greenhouse gas emissions in another developed country. For more information see here.). It does not focus on co-benefits. The VER+ standard was developed by TÜV SÜD, a Designated Operational Entity (DOE) for the validation and verification of CDM projects. It was designed for project developers who have projects that cannot be implemented under CDM yet who want to use very similar procedures as the CDM. The VER Plus was launched in mid 2007.
Verification of retirement against sales: This is independent third party assurance that the amount of abatementA reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual. sold by a provider as carbon offsets in a given period of time matches the amount of abatement that the provider retired over the same period. Verification may also indicate whether the abatement sold and retired matches the type of credit.
Voluntary Carbon Standard Program: The VCS ProgramThe VCS Program includes the standard (VCS 2007) and the Program Guidelines 2007. The VCS Program provides a new global standard and criteria for validating, measuring, and monitoring voluntary carbon offset projects. For more information, see here. includes the standard (VCS 2007Is a certification standard for carbon offset projects. It provides a global standard for voluntary GHG emission reduction and removal projects and their validation and verification.) and the Program Guidelines 2007. The VCS Program provides a new global standard and criteria for validating, measuring, and monitoring voluntary carbon offset projects. For more information, see here.
ZAR: South African currency, pronounced 'Rand'.

Links to Glossaries

UNFCCC: Glossary of Climate Change Acronyms
UNFCCC: Glossary of Clean Development Mechanism Terms
Global Sustainability Institute at RMIT University: Glossary on Environment
Carbon and Environment Daily: Glossary of Environmental Management
Tufts Climate Initiative: Carbon Offset Glossary
Carbon Positive: Glossary on Carbon Markets
Allianz: Glossary of Emissions Trading
The Carbon Association Australasia Ltd Glossary: http://www.caaltd.org/glossary.aspx
http://www.climatecare.org/about/jargon-buster/

Carbon Offset Guide Australia

Carbon Offset Glossary