CDM Terminologies and Acronyms

CDM Terminologies and Acronyms


Adaptation Fund

Two percent of the CERs from every CDM project are deposited in a special registry run by the Executive Board. Revenues from their sale will be used to fund climate change adaptation projects in developing countries. Projects in Least Developed Countries are exempt.

Additionality

Additionality asks whether the CDM project would have happened anyway or whether it needed the CDM to go ahead. “It is generally recognised that credits for GHG emissions reduction should only be granted for projects that are additional; that is, for projects which would not have taken place in the absence of the crediting procedure or trading scheme”.
Additionality is a critical issue. Registering a non-additional CDM project will result in no additional benefit to the climate and thus represents wasted investment. Furthermore, a non-additional project will generate fake carbon credits that an Annex I country can use to avoid making real emission reductions domestically, and ultimately leads to an increase in global emissions above what was expected due to the Kyoto Protocol.

Annex I countries

The industrialized countries who have specific commitments to reduce greenhouse gas emissions under the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. The only exceptions are Turkey and Belarus which are in Annex I but do not have reduction commitments under the Kyoto Protocol.
Baseline
The baseline describes what will happen, and how many greenhouse gas emissions will eventuate,in the absence of the CDM project, ie. the business as usual outcome. It is the alternative, or “counter-factual” scenario that is used as a comparison with the proposed CDM project to estimate the emissions reductions that will be achieved, and helps to determine additionality.


Certified Emission Reduction (CER)
The name given to a carbon credit from a CDM project. Credits from JI projects are called Emission Reduction Units (ERU). CERs are equal to one tonne of carbon dioxide equivalent (tCO2e).

Crediting period
The crediting period is the length of time during which the project will generate carbon credits. Under the Marrakech Accords projects can choose between a 7 year period which can be renewed twice to make a total of 21 years, or a one-off 10 year period. If they chose the former they must renew the baseline after every 7 year period. The crediting period is different from the project lifetime; a dam, for example, may have an estimated life of 50 years, but only be a CDM project and generate credits for 10 of those years.

Designated National Authority ( DNA) for the CDM
The DNA is the focal point for CDM matters in your country. It is frequently a unit in a government ministry that is responsible for administering CDM implementation and overseeing approval of projects. A list of some DNAs is on the official UNFCCC CDM webpage: http://cdm.unfccc.int/DNA.

Designated Operational Entity
DOEs are accredited by the Executive Board and perform two functions: validating CDM projects, and verifying and certifying emissions reductions from projects. The same DOE cannot perform both functions for one project unless it is a small-scale project. A list of accredited DOEs is available on the UNFCCC CDM webpage : http://cdm.unfccc.int/DOE.

Emissions Trading
The trading of emission allowances between Parties who have a reduction commitment under the Kyoto Protocol. It is expected that various national and regional trading schemes will be established.

Executive Board
The CDM Executive Board supervises the CDM and makes the final decision about project registration and the issuing of carbon credits. The Board also makes the final decision whether to approve new baseline and monitoring methodologies and must approve new DOEs. The Board was elected at the Marrakech Conference of Parties in 2001 and has 10 members from Parties to the Protocol. The Board must meet no less than three times a year. Members are elected for a term of two or three years.

Joint Implementation
Joint Implementation is one of the three so-called flexible mechanisms of the Kyoto Protocol, and like the CDM is project based – ie. Industrialized countries get reduction credits for investing in emission reducing projects in another country. In the case of JI projects, however, both countries have to have a reduction commitment under the Kyoto Protocol, unlike the CDM where the projects happen in countries without a reduction commitment.
Leakage
Leakage refers to emissions that take place outside of the project boundary but are attributable to the project. For example, a large energy efficiency project may result in reduced electricity prices leading to increased usage and greenhouse gas emissions1.

Marrakech Accords

The Marrakech Accords set out the rules for CDM projects, with the exception of those involving forestry projects, although they did determine that forestry projects are restricted to Afforestation and Reforestation projects and set a limit on their use The Accords are named after the meeting at which they were agreed – the 7th Conference of Parties to the Climate Convention in Marrakech, Morocco, in 2001.

Monitoring and Verification
The reduction in emissions achieved by a CDM project must be monitored by the project operator consistent with the monitoring plan outlined in the Project Design Document (PDD). This data is then verified by a designated operational entity, who then certifies that the reductions have taken place and recommends that the Executive Board issues carbon credits.

Project Boundary
Each CDM project has to identify a “project boundary”. The project boundary encompasses all of the increases and reductions of greenhouse gases that are reasonably attributable to the project so that total reductions can be calculated. For example, a biomass plant utilizing agricultural waste that displaces coal fired electricity can claim credit for the reduction in emissions that results from its operations. But it may also have to account for the greenhouse gas emissions that result from the transporting of biomass to the plant.

Project Design Document (PDD)
The document that describes the prospective CDM project and how it meets the validation requirements spelt out in the Marrakech Accords. The PDD is the main document assessed by the validator and is made available during the 30 day public comment period.

Registration
Registration is the final approval of a CDM project by the Executive Board, meaning the project can begin to generate carbon credits. Registration is expected to be a formality; the real decision about whether a project should be approved will be taken by the validator.

Stakeholders
Stakeholders are defined in the Marrakech Accords as “the public, including individuals, groups or communities affected or likely to be affected, by the proposed clean development mechanism project activity”.

Target
Under the Kyoto Protocol industrialized countries agreed to reduce their emissions. The amount they agreed to is their target. The targets are expressed as a percentage reduction of greenhouse gas emissions compared to 1990 emission levels, which has to be achieved in the period 2008-2012. So, for example, Japan has a target of 6%, which means that in the period 2008-2012 its emissions must be 6% below what they were in 1990.

Transaction costs
Transaction costs are the costs involved in developing a CDM project and then monitoring and verifying the emission reductions or sequestration that it achieves during the crediting period. It includes expenses such as preparing a PDD, which is usually done by a consultant, and baseline studies.

Validation
Before a CDM project can be presented to the CDM Executive Board for registration, an independent certifier – the validator - checks whether it meets the CDM’s validation requirements, which are in the 2001 Marrakech Accords. If the validator judges that it satisfies these requirements then it sends a recommendation to the CDM Executive Board, in the form of a validation report, that the project be registered. In reality, validation is the stage at which


Projects are approved, with registration being a formality. If a validator says that a project satisfies the CDM requirements, it is unlikely to be rejected by the Executive Board
.
UNFCCC – the United Nations Framework Convention on Climate Change
The UNFCCC is the Convention signed at the Earth Summit in Rio de Janeiro in 1992 which included a non-binding commitment by industrialized countries to stabilize their emissions at 1990 levels by 2000. When this proved inadequate, a supplementary protocol was agreed – the Kyoto Protocol – which committed industrialized countries to an average 5% reduction in greenhouse gas emissions by 2010 compared to 1990 levels.

Documentation to facilitate negotiations among Parties

Draft decisions on other issues identified in paragraph 49 (c) of
document FCCC/KP/AWG/2008/8


1. This addendum is a compilation of proposals by Parties for elements of decisions to be adopted by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP) at its fifth session. It has been prepared by the Chair of the Ad Hoc Working Group on Further Commitments for Annex I Parties under the Kyoto Protocol (AWG-KP), under his own responsibility, building on the work of the AWG-KP at its eighth session held in Bonn, Germany, from 1 to 12 June 2009, and
discussions at its informal meeting held in Bonn from 10 to 14 August 2009.
2. Proposals for elements of draft CMP decisions on emissions trading and the project-based mechanisms are contained in annex I. Options and proposals on how to address definitions, modalities, rules and guidelines for the treatment of land use, land-use change and forestry are contained in annex II. Proposals for elements of draft CMP decisions on greenhouse gases, sectors and source categories; common metrics to calculate the carbon dioxide equivalence of anthropogenic emissions by sources and removals by sinks; and other methodological issues are contained in annex III. Proposals for elements of draft CMP decisions on other issues are contained in annex IV.
3. Annexes I and III reflect limited modifications to the corresponding annexes to document FCCC/KP/AWG/2009/10/Add.3. Annexes II and IV are the same as the corresponding annexes to document FCCC/KP/AWG/2009/10/Add.3.


Download full report from: http://unfccc.int/resource/docs/2009/awg9/eng/10a03.pdf

Carbon Credits

Carbon Credits

There is an urgent need for countries to adopt a universal and global "carbon price" to arrest large scale greenhouse gas emissions. There is also much discussion about the best methods and incentives to control carbon output, that is, should there be a 'cap and trade' or tax combined with a voluntary carbon market or an emissions trading scheme to ensure emissions compliance?

As the world’s first cap-and-trade program for carbon dioxide emissions, the European Union’s Emissions Trading System (EU ETS) has attracted a lot of attention. Although this scheme has come under criticism from some quarters, the performance of the EU ETS cannot be evaluated without understanding that the first three years from 2005 through 2007 were a “trial” period. The EU ETS is also interesting because it provides some insights into the problems to be faced in constructing a global greenhouse gas emission trading system.

The personal approach discussed below differs from the larger industry scale Renewable Energy Certificates (RECs) and large scale carbon markets already mentioned. RECs are a tradable form of electronic currency and represent the environmental attributes of the power produced from renewable energy projects and are sold separate from commodity electricity. Although they differ between countries, under most programs, one REC would be equivalent to the environmental attributes of one MWh (Mega Watt hour) of electricity from a renewable generation source. More information on RECs is available by following the link above.



Personal Approach
By purchasing carbon credits you can help stimulate clean energy uptake and cut emissions contributing to global warming. Anyone can completely compensate their greenhouse gas emissions by going carbon neutral. Carbon neutral means that all your carbon dioxide (CO2) emissions are offset by carbon credits. You can purchase these for your home, car or air flights, compensating for all your personal CO2 emissions.


carbon footprints For individuals or households this is how it works: Firstly, a carbon calculator is used to work out your personal or family carbon footprint based on your annual energy activity. This calculation is the total of how much carbon dioxide you are releasing into the atmosphere through your activities. The amount of carbon dioxide you emit is then offset by the purchase of Carbon Credits.

There are quite a few retailers offering uncertified carbon offsets. You should avoid carbon offsets that don't come with a certification as they provide no guarantees that you are getting what you are paying for.

4Offsets.com are fighting global warming and provide a variety of ways for you to offset your greenhouse gas emissions and goGo Carbon Neutral. When you purchase carbon credits, you take responsibility for your contribution to climate change.


Planting Trees and Land Re-forestation
Another way to slow global warming is to plant more trees. Forests and trees breathe in carbon dioxide and by planting trees we create additional sinks, (C02 is sunk in the trees). Carbon storage in forests is part of a natural cycle, whereby some carbon is removed from the atmosphere and incorporated into the plant, and at the same time some carbon is released back to the atmosphere from the decomposition of litter and soil organic matter. The carbon dioxide absorbed by forests is tied up and kept out of the atmosphere. Deforestation at a global level has removed these precious carbon sinks, stopping the natural uptake of this gas. By planting more trees we can create forests that breathe in the carbon dioxide and breathe out our life giving oxygen.

Volunteer with tree planting groups and get involved for a few hours each year to reinvigorate yourself and our atmosphere. If you are unable to get out and plant, or spare the time, then purchase trees to be planted on your behalf.

By purchasing credits from an accredited company like Carbon Planet you are ensuring that the CO2 you produce is removed from the atmosphere and stored within a tree where it can no longer impact on the Greenhouse Effect.

Wind power brings light to the poor

KHAROCHHAN, Pakistan (AFP) – A tiny island of fishermen is light years ahead of the rest of Pakistan, powering homes and businesses with wind turbines -- protecting the environment and improving the quality of life.

The government may lack the cash to harness hydro, wind and solar resources on a large scale in the electricity-starved country but charities are lighting the way forward by putting wind power to work in remote villages.

"We've been given two bulbs a house, it's a blessing for all of us," said 42-year-old fisherman Mohammad Arif on the subtropical island of Kharochhan, a land of creeks and mangroves in the cyclone belt of the Arabian Sea.

Lying 150 kilometres (94 miles) due south of Pakistan's financial capital Karachi, Kharochhan is an island of thatched homes where fishermen scrape by on 75 dollars a month and never dreamed of having electricity.

Then a local charity pitched up and installed five wind turbines. Now a fifth of homes -- 100 out of around 500 -- have been hooked up to the system.

"Each of us saves up to 1,500 rupees (18 dollars) that we would have spent on kerosene. I couldn't afford to educate my children, but now I'll put two of my four daughters in school," Arif said.

"We're poor with meagre resources. Our boys usually become fishermen and our girls illiterate housewives. This money could help us improve our children's future," he added.

Pakistan faces a catastrophic energy crisis, able only to produce 80 percent of the electricity that it needs, suffocating industry and making life tough in extreme winter and summer weather.

The shortfall has been blamed on government incapacity, corruption, short sightedness, debts, a creaking distribution system and lack of money to invest in energy sources.

To help cut energy needs Pakistan last year introduced daylight saving time in summer, but experts say the most sustainable long-term solution is to tap into abundant renewable resources.

Half an hour by boat from the mainland, development on Kharochhan has been hampered by isolation, said Nadeem Jamali, secretary general of a charity helping coastal villages use strong winds to generate electricity.

"Our project is to avoid environmental degradation and help provide the population with a proactive social life," said Jamali, of the Pakistani charity Action for Humanitarian Development.

Before his organisation erected turbines, villagers cut down mangroves for firewood to cook meals and used kerosene to light homes, damaging the environment and producing heavy smoke causing allergies.

"Wind energy should stop the use of kerosene and we advise people to use acacia wood for cooking because mangroves protect them from rampant cyclones," said Jamali, of the trees that are a buttress against waves during storms.

Shah Kamal, who designs wind turbines, says the high winds that batter Pakistan's 1,050-kilometre (656-mile) coastline are perfect for powering turbines and cutting power shortages.

The applied physics graduate said the energy crisis, which sees power cut for 10 hours a day when temperatures top 40 Celsius (104 Fahrenheit), forced him to design and mount a wind-turbine generator on the roof of his house in Karachi.

"When I solved my own problems, I thought why not provide similar advantages to other people?" he said.

"We have given electricity to more than 100 houses in Kharochhan with five turbines. There are also four street lights," Kamal said.

"I see a great future for this technology," he added.

It has revolutionised villagers' lives, which once ended at sunset.

"With light available at night we can now do business for longer and our women do more embroidery work to earn for the family," said local fisherman Shahid Ali.

"Stray dogs don't bark at us now because they can recognise us in the light. And most satisfying of all -- our lights don't go off as routine in big cities," said Ali.

Pakistan's Alternative Energy Development Board says small wind turbines provide electricity to a few dozen coastal villages and that one large wind farm was established in April.

"Our target is to meet at least five percent of total installed capacity through renewable energy resources by 2030," said AEDB chief Arif Alauddin.

The Pakistan Meteorological Department says the country has the potential to generate 50,000 megawatts -- more than its total needs -- through wind, mostly in southern Sindh province.

Swat, the northwest valley ripped apart by fighting with the Taliban, also enjoys favourable wind conditions where authorities intend to invite investors once militancy is suppressed, said an official in Islamabad.

What consequences can we expect, and what can we do?

Predicting the consequences of global warming is one of the really difficult tasks for the world’s climate researchers. First, because the natural processes that cause precipitation, storms, increases in sea level and other expected effects of global warming are dependent on many different factors. Second, because it is difficult to predict the size of the emissions of greenhouse gases in the coming decades, as this is determined to a great extent by political decisions and technological breakthroughs.

Many of the effects of global warming have been well-documented, and observations from real life are very much consistent with earlier predictions. It is the precise extent that is difficult to predict. Among the effects that can be predicted are:

More drought and more flooding:

When the weather gets warmer, evaporation from both land and sea increases. This can cause drought in areas of the world where the increased evaporation is not compensated for by more precipitation. The extra water vapour in the atmosphere has to fall again as extra precipitation, which can cause flooding other places in the world.

Less ice and snow:

Glaciers the world over are shrinking rapidly at present. The trend is for the ice to melt faster than estimated in the IPCC’s latest report. In areas that are dependent on melt water from mountain areas, this can cause drought and a lack of drinking water. According to the IPCC, up to a sixth of the world’s population lives in areas that will be affected by this.

More extreme weather incidents:

The warmer climate will most probably cause more heatwaves, more cases of violent rainfall and also possibly an increase in the number and/or severity of storms.

Rising sea level:

The sea level rises for two reasons. Partly because of the melting ice and snow, and partly because of the thermic expansion of the sea. Thermic expansion takes a long time, but even an increase in temperature of two degrees celsius is expected in time to cause a rise in the water level of almost a metre.

In order to get an idea of the extent of the consequences, researchers typically work with scenarios that show various possible developments. (Photo: Scanpix/Reuters)