The CO2 market

A B C D E F G H I J K L N O P R S U V W

Additionality

According to the Kyoto Protocol, gas emission reductions generated by Clean Development Mechanism and Joint Implementation project activities must be additional to those that otherwise would occur. “Additionality” is established when there is a positive difference between the emissions that occur in the baseline scenario, and the emissions that occur in the proposed project.

Afforestation

The direct human-induced conversion of land that has not been forested for a period of at least 50 years to forested land through planting, seeding and/or the human-induced promotion of natural seed sources.

Allocation

Allocation of emissions permits or allowances among greenhouse gas emitters to establish an emission trading market. The division of permits/allowances can be done through grandfathering method and permit auctioning.

Annex B Countries

Annex B countries are the emissions-capped countries listed in Annex B of the Kyoto Protocol.

Annex I Countries

Annex I countries are the 36 industrial countries and economies in transition listed in Annex I of the UNFCCC. Belarus and Turkey are listed in Annex I but not Annex B; and Croatia, Liechtenstein, Monaco and Slovenia are listed in Annex B but not Annex I. In practice, however, Annex I of the UNFCCC and Annex B of the Kyoto Protocol are often used interchangeably.

Annex II Countries

Annex II of the UNFCCC includes all original OECD member countries plus the European Union.

Assigned Amount (AA)

The quantity of greenhouse gases that an Annex I country can release in accordance with the Kyoto Protocol, during the first commitment period of that protocol (2008-12).

Assigned Amount Unit (AAU)

An Assigned Amount Unit (AAU) is a tradable unit of 1 tCO2e.