A

A/R Projects

Afforestation and Reforestation Projects

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AAUs

Assigned Amount Units. The emissions units allocated to Countries listed in Annex I of the Kyoto Protocol. The Units are allocated to each Country based on their Kyoto Protocol targets and may be traded between Countries. One AAU equals one tonne of CO2-e.

Synonyms: Assigned Amount Units Assigned Amount Unit

ABARE

The Australian Bureau of Agricultural and Resource Economics, is a government economic research agency that provides independent research and forecasting on numerous specialised areas, including agriculture, fisheries, forestry and the Australian environment. For more information, see here.

Synonyms: Australian Bureau of Agricultural and Resource Economics

Abatement

A reduction in the amount or intensity of greenhouse gas emissions as a result of actions taken by a company or individual.

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ACCC

Australian Competition and Consumer Commission. An independent Commonwealth statutory authority that administers the Competition and Consumer Act 2010 and other Acts. It 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. In fair trading and consumer protection, its role complements that of the State and Territory consumer affairs agencies.

Synonyms: Australian Competition and Consumer Commission

ACCU

See Australian Carbon Credit Unit

Synonyms: ACCU CFI ACCU

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.

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Additionality

To be a robust offset, a project must be proven to be 'additional' to what would or could 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.

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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.

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AGO

The Australian Greenhouse Office has now been incorporated into the Department of Climate Change and Energy Efficiency (DCCEE).

Synonyms: Australian Greenhouse Office

Annex B

The group of countries listed in Annex B of the Kyoto Protocol that have agreed to a target for their greenhouse gas emissions. It includes all Annex I countries except Turkey. For more information, see here

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Annex II countries

The Countries listed in Annex II to the United Nations Framework Convention on Climate Change that have a special obligation to provide financial resources and facilitate technology transfer to developing countries.

Synonyms: Annex I country

Anthropogenic emissions

Greenhouse-gas emissions resulting from human activities. Anthropogenic sources of greenhouse gases include industry, agriculture, mining, transportation, construction, and deforestation.

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AP7 (formerly AP6)

Asia-Pacific Partnership on Clean Development and Climate that set 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 set out a voluntary framework for action that encouraged cooperation between member parties and the private sector to develop and implement clean energy technologies. The Partnership lasted for five years with the last meeting held in 2011.

Synonyms: AP7

AS/NZS 3598:2000

This Standard sets out minimum requirements for commissioning and conducting energy audits to 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.

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Australia's National Greenhouse Accounts

A comprehensive set of reports outlining Australia’s greenhouse gas emissions. Further information is available at: http://www.climatechange.gov.au/climate-change/emissions.aspx

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Australian Carbon Credit Unit (ACCU)

An emissions unit issued under the Carbon Farming Initiative (CFI) established by the Carbon Credits (Carbon Farming Initiative) Act 2011, for verified emissions reductions or removals achieved by projects approved under the CFI. Also referred to as a ‘CFI credit’.

Synonyms: Australian Carbon Credit Unit ACCU

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.

Synonyms: AS4978

B

BCSE

Business Council for Sustainable Energy (BCSE).

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Biodegradable materials

Materials capable of being broken down rapidly by living organisms such as bacteria and fungi. 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.

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Biofuels

Biofuels are renewable fuels made from biomass that can be used to supplement or replace the fossil fuels (such as petroleum, gas 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.

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Biomass

Biomass is non-fossilised 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.

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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.

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Business unit

A unit that is recognised by an entity as having administrative responsibility for one or more facilities of the corporation.

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C

Call option

A 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.

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Cancel

In 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. Cancelling offsets prevents the resale or reuse of offsets that have already been used. Under the Kyoto Protocol cancelled units cannot be used to achieve compliance with emissions targets.

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Carbon (natural) Sequestration

Carbon (natural) sequestration refers to the long-term storage of carbon in forests and vegetation, soils or in the oceans.

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Carbon Calculation

A 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.

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Carbon credit

A generic term to assign a value to an emission, reduction or offset of greenhouse gas emissions. A carbon credit is equivalent to one tonne of CO2-e.

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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 cycle.

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Carbon dioxide (CO2)

A 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.

Synonyms: Carbon dioxide CO2 CO₂

Carbon dioxide equivalent (CO2-e)

A standard measure that takes account of the different global warming potentials of greenhouse gases and expresses the cumulative effect in a common unit.

Synonyms: CO₂-e Carbon dioxide equivalent CO2-e

Carbon Farming Initiative (CFI)

The Carbon Credits (Carbon Farming Initiative) Act 2011 provides legislation that gives landholders, farmers and forest growers incentives to undertake land sector abatement projects. The scheme will credit the greenhouse gas abatement achieved by either:- Reducing or avoiding emissions, for example, through capture and destruction of methane emissions from landfill or livestock manure; or - Removing carbon from the atmosphere and storing it in soil or trees, for example, by growing a forest, or farming in a way that increases soil carbon. The CFI will create credits called Australian Carbon Credit Units (ACCUs). One ACCU will equal one tonne of CO2-e

Synonyms: Carbon Farming Initiative CFI

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 greenhouse gas (CO2-e) emissions produced.

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Carbon Management Principles

A set of Principles to guide carbon management strategies. They are, in order: measure the emissions, set objectives, avoid producing emission, reduce emissions, switch to les carbon intensive fuels or materials, sequester carbon, assess and offset.

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Carbon neutral

A voluntary mechanism where the net emissions associated with an event, household, business, product or organisation are equal to zero as a result of emission reduction activities and the retirement of sufficient offsets to match the remaining emissions.

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Carbon Neutral Program

This is a voluntary program whereby products and Australian business operations may be certified as Carbon Neutral under the Australian Governments National Carbon Offset Standard (NCOS). The Program commenced in July 2010 and succeeds the Greenhouse Friendly™ initiative (2001 – 2010). It is administered by Low Carbon Australia

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Carbon offset

A carbon offset is an investment in a project or activity that reduces greenhouse gas (GHG) emissions or sequesters carbon from the atmosphere beyond business as usual levels that is used to compensate for emissions from your own activities.

Synonyms: offset

Carbon price

An 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 can be derived from a carbon tax, a price under an Emissions Trading Scheme or by voluntary trading of offsets.

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Carbon tax

A tax on greenhouse gas emissions that leads to a carbon price.

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Carbon Trading

A term used to describe an ETS involving greenhouse gas emissions.

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CCB Standards

Climate, Community and Biodiversity Standards. The standard focuses exclusively on bio-sequestration (forestry) projects and emphasises the social and environmental benefits of such projects. CCBS is a project design standard with rules and guidance for project design and development. For more information, see here.

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CCS

Carbon 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.

Synonyms: Carbon capture and storage

CDM

Clean Development Mechanism is a Kyoto Protocol mechanism under which projects may be set up in developing countries (non-Annex 1 under the Kyoto Protocol) to reduce GHGs and generate tradable credits called CERs. The credits can be used by industrialised nations (Annex 1 under the Kyoto Protocol) to help meet their Kyoto reduction targets. Find out more here.

Synonyms: Chicago Climate Exchange

CERs

Certified Emission Reductions are credits generated under Kyoto's CDM. One CER unit is equivalent to the reduction of one metric tonne of CO2-e. They are designed to be used by industrialised countries (Kyoto protocol Annex 1 countries) to count towards meeting their Kyoto targets. They may 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.

Synonyms: Clean Development Mechanism

CFL

Compact Fluorescent Lights use less power and have a longer rated life than incandescent light bulbs and therefore use less energy across their lifecycle.

Synonyms: Certified Emission Reductions Certified Emission Reduction

Chlorofluorocarbons (CFC's)

Chemical substances containing carbon, chlorine 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.

Synonyms: Compact fluorescent lamps Compact fluorescent lamp

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 dioxide in the flue gas economically recoverable.

Synonyms: Chlorofluorocarbons CFC's

Clean Energy Council

The Clean Energy Council is the peak body representing Australia's clean energy sector. It is a not for profit industry association made up of more than 600 member companies operating in the fields of renewable energy and energy efficiency. The CEC's members are involved in the development or deployment of clean energy technologies such as bioenergy, cogeneration, energy efficiency, geothermal, hydro, solar, solar hot water, marine energy and wind.

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Clean Energy Future Plan

Australia’s ‘carbon pricing’ scheme that is to come into effect in July 2012. The scheme will put a price on greenhouse gas emissions and is intended to act as an incentive for all businesses to reduce their pollution through investing in clean technology and by implementing more efficient ways of operating. The carbon pricing mechanism will have a fixed price for three years before moving to a cap and trade scheme in 2015. The Clean Energy Future Plan replaces the previous Carbon Pollution Reduction Scheme.

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Clean Energy Regulator

The Clean Energy Regulator is a statutory Australian Government body established under the Clean Energy Regulator Act 2011. It administers the Carbon Pricing Mechanism, the National Greenhouse and Energy Reporting (NGER) scheme, the Carbon Farming Initiative and the Renewable Energy Target with the aim of reducing greenhouse gas emissions and increasing the use of clean energy.CO2-e

Synonyms: Carbon dioxide equivalent CO2e CO₂e CO2-e CO₂-e

Coal seam gas (CSG)

Occurring naturally within coal deposits, this gas is largely composed of methane, which is also the principal component of natural gas.

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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 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.

Synonyms: Carbon Reduction Scheme

D

DEFRA

UK Government Department for Environment, Food and Rural Affairs. For more information see here.

Synonyms: Department for Environment, Food and Rural Affairs

Developer

Refer to Project Developer

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Double counting

Double counting can happen when two or more businesses claim the same emission reduction. This can happen if an offset is sold to two or more entities, or when an entity upstream of the project claims the reduction as its own. The use of standard greenhouse gas accounting procedures, and an offsets registries can ensure that offsets are adequately accounted for.

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Double selling

Double selling occurs when a carbon offset is either sold by the producer and or retailer to more than one buyer. Therefore the emission reductions do not account for the total amount of emissions reductions the buyers have paid for.

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E

Emission factor

A factor that describes how much carbon dioxide equivalent (kilograms) is emitted per unit of activity.

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Emissions Reductions

A measurable reduction in the level of greenhouse gases being emitted by a country, state, organisation or individual.

Synonyms: Emissions Reduction

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. Australia has implemented a mandatory ETS for specified industry sectors which is due to commence in 2015. (See also ETS.)

Synonyms: emissions trading.

Energy efficiency (EE)

Energy 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 or other energy input.

Synonyms: Energy efficiency EE

Energy Saver Incentive Scheme

Energy Saver Incentive is the public name for the Victorian Energy Efficiency Target (VEET)

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EPA Victoria

Environment Protection Authority Victoria. For more information see here.

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ERU

An 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.

Synonyms: Emission Reduction Unit ERUs

ESC

Essential Services Commission. ESC operates the Victorian Energy Efficiency Target (VEET) scheme and its registry.

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ESC

Energy Saving Certificate. ESCs are created under the NSW Energy Saving Scheme (ESS). These are measured in tonnes of CO2e.

Synonyms: ESC Energy Saving Certificate Energy Saving Certificates ESCs

ESS

Energy 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.

Synonyms: Energy Saving Scheme

ETS

An Emissions Trading Scheme 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.

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EUA

European 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

Synonyms: European Union Allowances EUAs

Exercise price

Generally 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.

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F

Facility

An activity, or a series of activities (including ancillary activities), that involve the production of greenhouse gas emissions, the production of energy or the consumption of energy and that form a single undertaking or enterprise and meet the requirements of the National Greenhouse and Energy Reporting (NGER) Regulations.

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Forward contract

A 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.

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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 sell.

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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.

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Forward price

The forward price (or sometimes forward rate) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract.

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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.

Synonyms: Forwards

Forward rate

The forward rate (or forward price) is the agreed upon price of an asset (e.g. carbon offsets) in a forward contract.

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Forward sell

The sale of carbon offsets for emissions reductions or sequestration that have not yet occurred and therefore can not be precisely measured.

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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.

Synonyms: Fossil fuel

Fugitive emissions

Fugitive greenhouse gas emissions are waste or loss in the process of fuel production, storage, or transport, such as methane given off during oil and gas drilling and refining, or leakage of natural gas from pipelines.

Synonyms: Fugitive emission

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 Factors but is not used in the GHG Protocol.

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Functional unit

A means of expressing the greenhouse gas emissions of a product in a way that is meaningful for the product being investigated (for example kilograms of CO2-e per unit of product).

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Fungibility

In relation to carbon offsets, fungibility is the interchangeability of a carbon credit or permit between certification schemes or programmes.

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Futures contract

A futures contract is a standardised 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.

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Futures exchange

A central financial exchange where people can trade standardised 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.

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G

Geosequestration

Also 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.

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GGAS

See The NSW Greenhouse Gas Abatement Scheme

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GHG (Greenhouse Gases)

Greenhouse 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).

Synonyms: GHG Greenhouse Gases

GHG Protocol

The 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 programmes, as well as inventories prepared by individual companies.

Synonyms: WRI / WBCSD GHG Protocol WRI GHG Protocol WRI/WBCSD GHG Protocol

Gold Standard

A 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.

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Gold Standard VER

Is a certification standard for carbon offset projects, specifically aimed at small scale projects. (See Gold Standard above). For more information see here.

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Greenhouse effect

The 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.

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Greenhouse Friendly

The Greenhouse Friendly™ initiative operated between 2001 and 30 June 2010. It certified carbon neutral products and services and approved abatement credits for sale on the voluntary market. Applications for new abatement projects have closed.

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GreenPower standard

An 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.

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GWP

Global warming potential (GWP) measured in CO2-e, 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.

Synonyms: Global warming potential

H

Hedge

In finance, a hedge is a position established in one market in an attempt to balance exposure to the price risk another obligation.

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Hedging

Hedging is a strategy designed to minimise exposure to such business risks as changing prices for commodities (e.g. carbon offsets).

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Hydrofluorocarbons (HFCs)

Major 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).

Synonyms: Hydrofluorocarbons HFCs

I

IPART

Independent 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.

Synonyms: Independent Pricing and Regulatory Tribunal

IPCC

Intergovernmental 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.

Synonyms: Intergovernmental Panel on Climate Change

ISO 14000

ISO 14000 is a set of international standards that provide a framework for the development of an environmental management system (EMS) and supporting audit programmes. The ISO 14000 series are intended to help organisations comply with applicable laws, regulations and requirements and to continually improve on their environmental performance.

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ISO 14064

A global GHG 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.'

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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.

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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.

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ITL

International Transaction Log is a centralised 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.

Synonyms: International Transaction Log

J

JI

The 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.

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K

Kt

Kilotonnes = 1,000 tonnes.

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Kyoto Protocol

An 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 industrialised countries (described as Annex 1 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.

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Kyoto Protocol Mechanisms

Three procedures established under the Kyoto Protocol to increase the flexibility and reduce the costs of making greenhouse-gas emissions cuts; they are the Clean Development Mechanism (CDM), Joint Implementation (JI) and Emissions Trading. For more information, see here.

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Kyoto unit

An emissions unit recognised for compliance under the Kyoto Protocol. Kyoto units include Assigned Amount Units (AAUs), CERs (including temporary CERS -tCERs and long term CERS - lCERs), ERUs and Removal Units (RMUs).

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L

Landfill

A specially designed site for the disposal of waste to land by burial.

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Landfill Gas

The gas that is generated by the decomposition of waste in landfills.

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Large Scale Renewable Energy Target (LRET)

As from 1 January 2011 the Renewable Energy Target was separated into two parts: the Large Scale Renewable Energy Target (LRET) and the Small Scale Renewable Energy Scheme (SRES). The LRET encompasses large scale renewable energy projects like wind farms, commercial solar and geothermal which have an energy output of 100kW or greater.

Synonyms: Large Scale Renewable Energy Target LRET

Leakage

In 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.

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LGCs

LGCs are Large Scale Generation Certificates issued under the Large Scale Renewable Energy Target by the Australian Government's Office of Renewable Energy Regulator. They are equivalent to one-megawatt hour of renewable electricity. LGCs can be bought and sold both by electricity retailers and by other businesses in order to meet the legal requirements of LRET.

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Life Cycle Assessment (LCA)

LCA 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.

Synonyms: Life Cycle Assessment LCA

Low Carbon Australia Limited (LCAL)

A company established by the Australian Government to provide financial solutions and advice to Australian business, government and the wider community to encourage action on energy efficiency, cost-effective carbon reductions through its Energy Efficiency Program. Low Carbon Australia is also the program administrator for the Carbon Neutral Program under the National Carbon Offset Standard. See more

Synonyms: Low Carbon Australia Limited LCAL

LPG

Liquefied Petroleum Gas is a mixture of hydrocarbon gases.

Synonyms: Liquefied Petroleum Gas

LRET

Refer to the Large Scale Renewable Energy Target.

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LULUCF

A 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.

Synonyms: Land Use, Land-Use Change and Forestry

M

Methane

Methane (CH4) is a greenhouse gas with a GWP of 21.

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Methane (from) coal

A by-product of the coal formation process. Coalmines are generally vented to ensure the safety of employees. Methane can also be captured and then flared into the atmosphere, or burnt to generate energy.

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Methane (from) landfill

Decomposting matter emits a range of gases including methane. Methane emitted from landfills can be captured and then flared into the atmosphere, or burnt to generate energy

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Methane (from) livestock

Certain types of animals release methane, either directly or from manure. This can be captured and then flared into the atmosphere, or burnt to generate energy.

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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.

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Monoculture

The practice of producing or growing one single crop over a wide area.

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N

NABERS

The 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.

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National Carbon Offset Standard (NCOS)

The Commonwealth Government’s National Carbon Offset Standard (NCOS) came 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 cancellation of eligible carbon offsets. More Information

Synonyms: National Carbon Offset Standard NCOS

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 gases. It is prepared by the Department of Climate Change and replaces the AGO Factors & Methods Workbook. For more information, see here.

Synonyms: NGA Factors NGA

NCAS

The 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.

Synonyms: National Carbon Accounting System

NCAT

The National Carbon Accounting Toolbox provides the tools for tracking greenhouse gas emissions and carbon stock changes from land use and management.

Synonyms: National Carbon Accounting Toolbox

NCOS compliant abatement

Abatement 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.

Synonyms: NCOS compliant

NEM

National Electricity Market. A wholesale market for the supply of electricity for the east coast of Australia including Queensland, NSW, ACT, Victoria, Tasmania and South Australia.

Synonyms: National Electricity Market

NGA

See the National Greenhouse Accounts Factors as updated from time to time

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NGAC

New 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.

Synonyms: New South Wales Greenhouse Gas Abatement Certificate NSW Greenhouse Gas Abatement Certificate NGACS NGAC's NGACs

NGAS

See NSW GGAS

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NGERS

The National Greenhouse and Energy Reporting Scheme 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 commenced on 1 July 2008.

Synonyms: National Greenhouse and Energy Reporting System

NGO

Non-governmental organisation (NGO) is a term that has become widely accepted as referring to a legally constituted, non-governmental organisation 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 organisation.

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NGPAP

National GreenPower Accreditation Program. The system used to issue GreenPower Standards.

Synonyms: National GreenPower Accreditation Program

Not-for-profit

In 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.

Synonyms: NFP Not for profit Not-for-profit not-for-profit

NSW GGAS

New 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.

Synonyms: NSW Greenhouse Gas Abatement Scheme New South Wales Greenhouse Gas Abatement Scheme NSW-GGAS

O

Operational control

The highest authority within a corporate group to introduce and implement any or all of the following for the Facility: (i) operating policies; (ii) health and safety policies; (iii) environmental policies. Only one corporation can have operational control over a Facility at any time.

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ORER

The Office of the Renewable Energy Regulator was a statutory authority established to oversee the implementation of the Australian Government's renewable energy target (RET). The functions of this agency have now been absorbed into the Clean Energy Regulator.

Synonyms: Office of the Renewable Energy Regulator

P

PAS 2050

PAS 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 UK Carbon Trust and DEFRA co-sponsored the publication by the British Standards Institution of PAS 2050.

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PDD

A 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.

Synonyms: Project Design Document

Perfluorocarbons (PFCs)

Most emissions of PFCs in Australia are generated during aluminium production. PFCs have extremely high global warming potentials (up to 10,000 times that of carbon dioxide). However, because they are only released in relatively small amounts, their total contribution to global warming is minor. Due to their stability they have very long atmospheric lifetimes (thousands of years).

Synonyms: PFCs Perfluorocarbons

Permanence

With regard to offsets, permanence requires the generation of offsets to have actually occurred and the carbon stored or sequestered not to be released into the atmosphere in the future. Sequestration is generally regarded as permanent if it is maintained on a net basis for around 100 years.

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Permit

In relation to carbon offsets, a permit is a legal permission authorising the holder to emit a defined quantity of greenhouse gases. Under an ETS a permit is equivalent to one tonne of CO2e. If a company emits less greenhouse gases than authorised they can sell their permits within the trading scheme.

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Photovoltaic (PV)

Photovoltaic cells are used in solar panels to convert sunlight directly into electricity.

Synonyms: Photovoltaic PV

Plan Vivo System

An offset project method for small-scale community-based LULUCF projects with a focus on promoting sustainable development and improving rural livelihoods and ecosystems. For more information, see here.

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Project developer

The Project Developer is the person or organisation that establishes a project, by designing, registering, implementing and monitoring the project for the purposes of creating and selling carbon offsets and reducing greenhouse gas emissions.

Synonyms: Developer

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.

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Purchase for surrender

Carbon offsets are purchased and retired from the market by the offset provider.

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Put option

A 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.

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R

Rainforest Alliance certification

Rainforest Alliance Certification Programmes 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.

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REC

Renewable Energy Certificates in Australia were previously issued by the Australian Government's Office of Renewable Energy Regulator prior to 1 January 2011. The responsibility for this function has now transferred to the Clean Energy Regulator. A REC is equivalent to one-megawatt hour of renewable electricity. As from 1 January 2011 certificates issued under the Renewable Energy Target are issued as LGCs or STCs by the Clean Energy Regulator.

Synonyms: RECS Renewable Energy Certificates Renewable Energy Certificate RECs REC's

REDD

Reducing Emissions from Deforestation and Forest Degradation

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REES

Residential 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.

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Reforestation

The reestablishment of forest on land that was previously forested but converted to another use before 31.12.1989.

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Renewable resources

A 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. Retailer

Synonyms: Renewable resource

RET

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.

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Retire

In 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. Under the Kyoto Protocol retired units are also able to be used by Annex B countries to achieve compliance with their emissions targets.

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RFI

Radiative 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-e. RFI is usually used in relation to aviation.

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RMUs

Removal Units are carbon credits that are derived from LULUCF projects in industrialised countries that remove carbon dioxide from the atmosphere. An RMU is equal to one metric tonne of CO2-e.

Synonyms: Removal Unit Removal Units

S

Scope 1 emissions

The release of greenhouse gas into the atmosphere as a direct result of the activities of a company..

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Scope 2 emissions

The release of greenhouse gas as a result of electricity generation, heating, cooling or steam that is consumed by a Facility.

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Scope 3 emissions

The release of greenhouse gas into the atmosphere that is generated in the wider economy as a consequence of a facility’s activities but that are physically produced by another Facility.

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Sequester

The uptake and storage of greenhouse gases from the atmosphere. For example trees and other plants sequester carbon dioxide from the atmosphere as they grow, through the process of photosynthesis.

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Sinks

Any process that removes a greenhouse gas from the atmosphere. Major sinks include forests and other vegetation.

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Small Scale Renewable Energy Scheme (SRES)

As from 1 January 2011 the Renewable Energy Target was separated into two parts: the Large Scale Renewable Energy Target (LRET) and the Small Scale Renewable Energy Scheme (SRES). The SRES encompasses small scale technologies such as solar panels and solar water heaters.

Synonyms: Small Scale Renewable Energy Scheme SRES

SME

Small and medium enterprises

Synonyms: SMEs SMES

Spot price

The 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.

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Spot trades

The 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.

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SRES

Refer to the Small Scale Renewable Energy Scheme

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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.

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STCs

STCs are Small Scale Technology Certificates issued under the Small Scale Renewable Energy Scheme by the Australian Government's Clean Energy Regulator. They are equivalent to one-megawatt hour of renewable electricity. STCs can be bought and sold both by electricity retailers and by other businesses in order to meet the legal requirements of SRES.

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Strike price

Generally 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.

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Sulphur Hexafluoride

Sulphur 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.

Synonyms: SF6

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.

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Surrender

In 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 (CO2-e) emitted within the relevant time frame. This ensures that the credits are not double-counted.

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T

T

Tonne

Synonyms:

tCO2-e, MtCO2e

Tonnes of CO2-e, and millions of tonnes of carbon dioxide equivalent. This is the metric measurement unit for greenhouse gas emissions.

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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.

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U

UNFCCC

The United Nations Framework Convention on Climate Change was established in 1992 at the Rio Earth Summit.. It is aimed at stabilising atmospheric concentrations of greenhouse gases. More info

Synonyms: United Nations Framework Convention on Climate Change

V

VCS 2007

Is 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.

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VEEC

Victorian Energy Efficiency Certificates are created under the Victorian Energy Efficiency Target (VEET) scheme. One VEEC is equal to 0.1 tonnes of CO2-e 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.

Synonyms: VEECs VEEC's

VEET

The 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.

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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. 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.

Synonyms: VERS Verified Emission Reduction Verified Emission Reductions VER's VERs

VER+

The 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.

Synonyms: VER Plus

Verification of retirement against sales

This is independent third party assurance that the amount of abatement 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.

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Verified Carbon Standard Program

The VCS Program includes the standard (VCS 2007) and the Program Guidelines 2007. The VCS Program provides a global standard and criteria for validating, measuring, and monitoring voluntary carbon offset projects. For more information, see here.

Synonyms: VCS VCS Program Verified Carbon Standard

Verified Carbon Unit (VCU)

Verified Carbon Unit. Description of carbon offset derived from accreditation to the Verified Carbon Standard (VCS) Program.

Synonyms: Verified Carbon Unit VCU VCUs