KYOTO PROTOCOL GLOSSARY OF TERMS AND ABBREVIATIONS USED

TERMS
Allowance - An allowed, possibly tradable, right-to-emit in a country that has taken on an emissions cap under the Kyoto Protocol. The units for allowances are tonnes of CO 2 equivalent. Annex I countries - Annex I is an Annex in the United Nations Framework Convention on Climate Change. The Annex I countries are those which committed themselves as a group to reducing their emissions of the six greenhouses gases by at least 5% below 1990 levels over the period between 2008 and 2012. Specific targets vary from country to country. Annex B countries - Annex B countries are defined in Annex B of the Kyoto Protocol. These are industrialised countries with greenhouse gas emissions limitations (which may nevertheless be a net increase in emissions) or a reduction commitment. The annex identifies those countries currently making a transition to a market economy. The only difference between the Annex I and Annex B countries, is that Turkey and Belarus are not Annex B countries. Non-Annex I countries - Annex I is an Annex in the United Nations Framework Convention on Climate Change listing those countries which are signatories to the Convention and committed to emission reductions. The Non-Annex I countries are developing countries, and they have no emission reduction targets. Article 6 projects - Article 6 is one of the articles in the Kyoto Protocol. It defines Joint Implementation projects and eligibility criteria. Article 12 projects - Article 12 is one of the articles in the Kyoto Protocol. It defines Clean Development Mechanism projects and eligibility criteria. Assigned amount - The assigned amount is the emission allowance assigned under the Kyoto Protocol for the man-made emissions of greenhouse gases which an industrialised country (Annex I party) is permitted to emit over a certain commitment period. Banking - A maximum limit of 2.5% of a country's assigned amount (target) has been set for banking credits for future use in the next commitment period, for both Emission Reduction Units from Joint Implementation projects and Certified Emission Reductions from Clean Development Mechanism projects. Assigned Amount Units from emissions trading can be carried forward without restriction, whereas Removal Units assigned to removal of CO2 by sinks cannot be banked at all. Baselines - The baseline is the emission of greenhouse gases that would occur without the intended project activity or policy intervention. It therefore represents the emissions associated with a business-as-usual scenario. The additional emission reductions that a project contributes can only be determined once the baseline has been assessed. Various approaches can be taken to

determine the baseline, but the approach must be justified as part of the project validation process. Bilateral CDM - A bilateral CDM project is the standard form of the CDM project, involving an investor, a developed country and a host developing country. Bubble - A bubble is when emissions are grouped together for different countries, and the target applies to the group. Capacity building - This is the process of ensuring that those people in a country have the necessary skills and knowledge to understand the Kyoto Protocol and enable its implementation (i.e. through hosting projects). Carbon sinks - Carbon sinks are the ecosystems, principally forests and oceans, which remove carbon dioxide from the atmosphere by absorbing and storing it, thereby offsetting carbon dioxide emissions. Clean Development Mechanism - The Clean Development Mechanism is when a project undertaken in a developing country generates reductions in greenhouse gas emissions, it contributes to the host country's sustainable development, and it accrues emission reduction credits. These credits - Certified Emission Reductions (CERs)- can be used to contribute to the emission reduction commitments of industrialised countries. Article 12 of the Kyoto Protocol defines CDM. CDM Executive Board - The CDM Executive Board approves CDM projects, certifies operational entities and will issue carbon credits for CDM projects. Commitment Period - The time period (2008-2012) during which industrialised countries will restrict emissions to the set level agreed upon in the Kyoto Protocol. Credits - These are assigned for emissions reductions. There are four types of Kyoto credit Assigned Amount Units, Certified Emission Reductions, Emission Reduction Units, and Removal Units. The former are allocated to countries who have Kyoto Protocol targets, and the latter three types are generated through different types of projects. Crediting periods - The crediting period is the time period for which credits will be awarded without the need for a review of the project's baseline assumptions. Crediting periods can be either 7 years, renewed twice, i.e. 21 years in total, or a single period of 10 years. Designated National Authority - The DNA is the official body representing the Government which takes part in the arrangement of CDM/JI projects. For JI host countries, the DNA approves the projects and issues the emission reduction units. Designated Operational Entity - A Designated Operational Entity is an independent body accredited by the CDM Executive Board (CDM EB) that either validates a project proposal and

recommends it for registration by the CDM EB, or verifies the monitoring data and recommends to the CDM EB the amount of carbon credits that should be issued. Eligibility - The countries, or parties, which wish to use the Kyoto mechanisms will have to fulfil certain requirements to be eligible. These were determined at the Marrakesh meeting in November 2001 (CoP 7). Emissions Trading - A system allowing the trade of emission reduction credits, to facilitate compliance with emissions allowances at least cost. EU Allowance - European Allowance Units are issued to installations which have a cap on their emissions under the EU Emissions Trading Scheme (EU ETS). An installation must hold and surrender EU allowances and/or project based carbon credits equal to its monitored carbon dioxide emissions by the annual EU ETS reconciliation date. EU allowances are also the main unit which will be traded in the EU ETS. One EU allowance = 1 t CO 2e. First Track Joint Implementation Projects - These are "standard" Joint Implementation projects where both countries have met all the required eligibility criteria in terms of emissions reporting to the UNFCCC. Foreign Direct Investment - External finance invested in companies in a host country. Fungibility - Fungibility is the concept that the different types of reduction credits accruing under each mechanism are all equivalent. Hot Air- Hot air is the term used to describe the part of an industrialised country's assigned amount that is likely to be surplus to its needs without the country making additional efforts. Independent Entity - An independent entity is a body which validates the baseline setting approach and calculations for a JI project. Independent entities are accredited by the JI Supervisory Committee. Installation - The term "installation" is used to describe a site which has a cap on its carbon dioxide emissions, as part of the EU Emissions Trading Scheme. Joint Implementation - Industrialised countries can contribute to their greenhouse gas emission reductions targets by investing in emissions reduction projects in other industrialised (Annex-I) countries and receiving credits called Emission Reduction Units (ERUs). This is advantageous if mitigation costs are lower than those for national action. Joint Implementation (JI) is defined in Article 6 of the Kyoto Protocol. JI Supervisory Committee - The JI Supervisory Committee, a body which will be set up after entry into force of the Kyoto Protocol, will be the overseeing body for second track JI projects. It will have a similar role to that of the CDM Executive Board for CDM projects: accrediting validators; approving projects; accrediting verifiers; and overseeing the host country issue of

ERUs. Kyoto Mechanisms - There are three Kyoto Mechanisms which can assist a country to achieve its emissions target, in addition to domestic action. These are Emissions Trading, Joint Implementation and the Clean Development Mechanism. Kyoto Protocol - The agreement reached in Kyoto in 1997 committing developed countries and countries making the transition to a market economy (Annex I countries) to achieve quantified targets for decreasing their emissions of greenhouse gases. Kyoto Signatory - A signatory to the Kyoto Protocol is a country which signed to signify its intent to reduce its greenhouse gas emissions. Leakage - Leakage is the indirect effect of emission reduction policies or activities that lead to a rise in emissions elsewhere (e.g. fossil fuel substitution leads to a decline in fuel prices and a rise in fuel use elsewhere). For land use change and forestry activities, leakage can be defined as the unexpected loss of estimated net carbon sequestered. For CDM/JI projects, leakage can be a result of unforeseen circumstances, improperly defined baseline, improperly defined project lifetime or project boundaries, and inappropriate project design. Legal Entity Trading - Countries may authorise companies to take part in international emissions trading, if the trading will comply with international rules. These stipulate that trading may not happen if the authorising country fails to meet the eligibility requirements. Liability - There is a maximum limit on the amount of international emissions trading which can take place, such that any transfers must not cause the country's commitment period reserve to fall below 90% of its assigned amount, or five times its latest inventory, whichever is the lowest. Linking Directive - The "linking directive" is the name given to the EU directive that permits companies to use CDM and JI carbon credits for compliance with their targets under the EU Emissions Trading Scheme. Formally, the linking directive is not a directive in its own right, but an amendment to the EU ETS directive Marginal Abatement Costs - Marginal abatement costs are the investment costs required to bring about savings in greenhouse gas emissions. On the whole, the marginal abatement costs will be considerably lower in developing countries than in developed countries, because of their less technologically advanced state. Maximum Crediting Time - The maximum crediting time is the maximum period over which credits can accrue to the project. Monitoring - Monitoring is the exercise carried out to measure key data and enable the reduction in greenhouse gas emissions to be determined. Multilateral CDM - A multilateral CDM project involves the investor country, a host country and third party provision of the finance.

National Authority - The national authority is the official body representing the Government which takes part in the arrangement of CDM/JI projects. For JI host countries, the national authority approves the projects and issues the emission reductions units. National Focal Point - The National Focal Point (NFP) in countries that have signed the UNFCCC is the first point of contact within the government for communications regarding the UNFCCC. No-Regrets Mitigation Options - No-regrets Mitigation Options are measures whose benefits equal or exceed their costs. They are sometimes known as "measures worth doing anyway". Operational Entity - The operational entity is the independent body which validates a greenhouse gas reduction project and recommends it for registration by the CDM Executive Board. It also verifies the amount of credits the project generates, prior to their issue by the Board. Operational entities are accredited by the CDM Executive Board. Party - A party is a country which has adopted the United Nations Framework Convention on Climate Change. Permit - In relation to the EU ETS, a permit is required for each installation that is included in the EU ETS. The permit identifies the EU allowances that the site will receive. An installation will need to apply for a permit from the appropriate regulator, in a similar way to applying for other emissions permits. Anyone operating without a permit once the scheme has started will be subject to a fine. Prompt Start (CDM) - Clean Development Mechanism projects can start generating credits from 1 Jan 2000 if they meet all the criteria and have already begun. Ratification - After signing the Convention or the Protocol, a country must ratify it, thereby agreeing to be subject to a legally binding emissions reduction target, often with the approval of its parliament or other legislature. The instrument of ratification must be deposited with the depository (in this case the UN Secretary-General). Registry - A registry is essentially an account that holds all permits, allowances and other instruments available for compliance under Kyoto. Registries may be held at a number of levels (national or international), with national Governments holding national registries that will be used to hold the national compliance account instruments. Second Track Joint Implementation Projects - Countries which are out of compliance with Articles 5 and 7 of the Kyoto Protocol will be able to host Joint Implementation projects provided the emission reductions are verified in a similar way to those from Clean Development Mechanism activities. To use the second track, countries will only have to comply with 4 of the 6 eligibility requirements.

Sequestration - Sequestration is the process of absorbing carbon dioxide from the air through photosynthesis. In this way, carbon is stored in plants. Sinks - Sinks, or carbon sinks, are the ecosystems, principally forests and oceans, which remove carbon dioxide from the atmosphere by absorbing and storing it, thereby offsetting carbon dioxide emissions. Carbon sinks can also include the re-injection of carbon dioxide into oil reservoirs. Small scale projects - There is a simplified process for small scale CDM projects which will generate less emissions reductions. They are defined as: renewable energy projects under 15 MW; energy efficiency projects which reduce energy consumption by up to 15 GWh per year; or activities which emit less than 15 kilotonnes CO2 equivalent per year. Supplementarity - Under the rules of the Kyoto Protocol, the use of the 3 Kyoto mechanisms must be supplemental or additional to domestic action, with domestic action constituting a significant amount of the total country's effort to meet its target. Sustainable Development - Sustainable development is development that meets the needs of current generations without reducing the ability of future generations to meet their needs. The concept of sustainable development integrates the three conventionally separate domains of economic, environmental and social policy. CDM projects have to contribute to Sustainable Development in the host country. Transferability - There are no restrictions on the transferability of Assigned Amount Units, Emission Reduction Units, Certified Emission Units, and Removal Units to assist a country to achieve its emissions targets, within a set commitment period. Umbrella Group countries - The Umbrella Group countries are a group of countries who negotiate together with regard to international agreements on greenhouse gas reductions. The group comprises Russia, Japan, Australia, Canada, New Zealand, Norway, Iceland and Ukraine. Unilateral CDM - This is when a developing country, or an organisation within a developing country, undertakes a CDM project without using a developed (Annex I) country as a partner. In this way the host country or entity retains all the credits and can subsequently trade them. Validation - Validation of a project is confirmation of the baseline assumptions and calculations, its eligibility and its overall acceptability to stakeholders. Verification - JI and CDM projects need to be monitored to determine the resulting emissions reductions. In the case of CDM projects, the monitoring reports are verified to confirm the amount of emission reduction credits which should be issued.

ABBREVIATIONS
AAUs (Assigned Amount Units) - AAUs are the units used to define emission allowances assigned under the Kyoto Protocol. These allowances are for the man-made emissions of greenhouse gases which an industrialised country is permitted to emit over a certain commitment period. One Assigned Amount Unit is the equivalent of a metric tonne of Carbon Dioxide. ACBE (Advisory Committee on Business and the Environment) - A committee made up of representatives from business which advises the Government on business needs in relation to the Environment. AIJ (Activities Implemented Jointly) - Activities Implemented Jointly (AIJ) was established in April 1995 as the precursor of Joint Implementation and the Clean Development Mechanism. The aim of AIJ was to establish a partnership between governments or firms in two or more countries to design and build a project to reduce greenhouse gas emissions. Over 100 projects have been implemented in both developed and developing countries. CBM (Coal Bed Methane) - Coal bed methane can be captured and used and this can form a climate change project. There may also be potential for the seams that held the gas to be used for carbon dioxide sequestration. CCA (Climate Change Agreements) - Formally Climate Change Levy Agreements - sector wide negotiated agreements to reduce energy use in return for an 80% discount on the Climate Change Levy. CCL (Climate Change Levy) - A levy on the non-domestic use of energy, introduced by the Government on 1 April 2001, to provide an incentive to business to use less energy and use less carbon intensive forms of energy. CCP (Climate Change Projects) - Projects which will result in a net reduction in emissions of greenhouse gases. CCPO (Climate Change Projects Office) - Government funded office (jointly funded by DTI and Defra) to assist UK business to engage in the Clean Development Mechanism and Joint Implementation. CDCF (Community Development Carbon Fund) - This fund aims to link small-scale projects in developing countries which are seeking carbon finance with those companies, governments, foundations, and NGOs that are seeking to improve the livelihoods of local communities and obtain verified emission reductions.

CDM (Clean Development Mechanism) - A Clean Development Mechanism project is a Climate Change Project undertaken in a developing country. It leads to reductions in greenhouse gas emissions, and contributes to the host country's sustainable development. Credits are awarded for these reductions - Certified Emission Reductions (CERs) - can be used to contribute to the emission reduction commitments of industrialised countries. Article 12 of the Kyoto Protocol defines CDM. CDM EB (The CDM Executive Board) - The UNFCCC appointed body responsible for overseeing the CDM process, approving third party validators and verifiers, approving projects and ultimately issuing carbon credits for CDM projects. CER (Certified Emission Reduction) - The carbon credits arising from Clean Development Mechanism projects. One CER is awarded for a reduction in greenhouse gas emissions equivalent in impact to one tonne of carbon dioxide. CHP (Combined Heat and Power) - A system whereby electricity is generated locally, and the heat produced as a bi-product of the generation is also used, increasing overall energy efficiency. CMM (Coal Mine Methane) - Coal mine methane is also known as "mines gas". Its capture and use can form a climate change project. CO2e (Carbon dioxide equivalent) - Each of the greenhouse gases addressed by the Kyoto Protocol can be identified in terms of its climate change impact relative to that of carbon dioxide. The common unit for emissions reductions is one tonne of carbon dioxide equivalent. CoP (Conference of the Parties) - The annual conference held between the countries that are parties to the United Nations Framework Convention on Climate Change to determine the means by which the framework will be implemented. CoP/MoP (Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol) - This refers to the international conference held after the Kyoto Protocol has been ratified. CPA (Carbon Purchase Agreement) - Also referred to as an Emission Reduction Purchase Agreement (ERPA) - this is the contract between the carbon buyer and seller. CPR (Commitment Period Reserve) - The aim of the commitment period reserve is to prevent the countries overselling their emission permits by requiring each of them to maintain a certain amount of permits in their account. CT (The Carbon Trust) - A private body with public funding charged with taking the UK towards a low carbon economy. It operates the Action Energy programme of energy audits and targeted energy efficiency advice, and runs the Low Carbon Innovation Programme. Defra (Department for the Environment, Food and Rural Affairs) - The Department with responsibility for the UK Climate Change Programme, and which takes the lead role in international negotiations on Climate Change.

DfID (Department for International Development) - The Department responsible for developing and supporting international development projects. DfT (Department for Transport) - The Department with responsibility for UK transport policy. DNA (Designated National Authority) - The DNA is the official body representing the Government which takes part in the arrangement of CDM/JI projects. For JI host countries, the DNA approves the projects and issues the emission reduction units. DOE (Designated Operational Entity) - Designated operational entities are independent bodies accredited by the CDM Executive Board (CDM EB) that validate projects (eligibility of project type, baseline, monitoring and verification plan etc) and recommend whether or not the CDM EB should approve the project. They also verify the amount of emission reduction credits which should accrue to the project, prior to the issue of the credits by the CDM EB. DTI (Department of Trade & Industry) - The Department with responsibility for supporting UK industry both in the UK and overseas. EAU (European Allowance Unit) - European Allowance Units are issued to installations which have a cap on their emissions under the EU Emissions Trading Scheme (EU ETS). An installation must hold and surrender EU allowances and/or project based carbon credits equal to its monitored carbon dioxide emissions by the annual EU ETS reconciliation date. EU allowances are also the main unit which will be traded in the EU ETS. One EU allowance = 1 t CO2e. EBRD (European Bank for Reconstruction and Development) - EBRD supports the transition towards market economies and democracies in 27 countries from central Europe to central Asia. Owned by 60 countries and two intergovernmental institutions, it is the largest single investor in the area, primarily through investment in the private sector. ECGD (Export Credits Guarantee Department) - This agency issues Government-backed guarantees to provide industry with confidence when investing overseas. EIA (Environmental Impact Assessment) - Environmental Impact Assessment for projects (EIA) and Strategic Environmental Assessment for policies, plans and programmes (SEA) ensure that significant environmental impacts are identified, assessed and taken into account in a decision-making process in which the public can participate. EIT (Economies in Transition) - Two types of countries have Kyoto emission reduction targets. These are the industrialised countries and those with economies in transition. The latter group are the Central and Eastern European and Former Soviet Union countries ERC (Emission Reduction Credit) - A generic term encompassing all types of project based emission reductions.

ERU (Emission Reduction Unit) - The carbon credits arising from Joint Implementation projects. One ERU is awarded for a reduction in greenhouse gas emissions equivalent in impact to one tonne of carbon dioxide. EST (Energy Savings Trust) - The Energy Saving Trust (EST) is a non-profit organisation funded by the UK government and the private sector to contribute to reductions in CO 2 emissions in the UK. ETG (Emissions Trading Group) - The Emissions Trading Group (ETG), formed in June 1999 to develop proposals for a UK Emissions Trading Scheme, continues to represent its members' views in policy discussions with Government. EU ETS (EU Emissions Trading Scheme) - The EU ETS is due to start in 2005. It has two core elements, carbon dioxide emission limits applied to 5 sectors, and a system of trading allowances to enable compliance at least cost. Credits from CDM projects will be able to be used for compliance purposes from 2005, and those from JI projects from 2008. The EU ETS will operate irrespective of whether the Kyoto Protocol enters into force or not. FCO (Foreign & Commonwealth Office) - The FCO is the UK Government department responsible for the conduct of business with other governments and international organisations; for the protection of British citizens abroad; and for the promotion of British commercial and other interests across the world. It does this through a network of 224 Posts worldwide. FDI (Foreign Direct Investment) - External finance invested in companies in a host country. FSU (Former Soviet Union) - The states that became newly independent following the break up of the Soviet Union in the 1990's. FSU nations include the European states: Russia, Ukraine, Moldova, Belarus, the Baltic States: Latvia, Lithuania, Estonia, and the Central Asian states: Kazakhstan, Tajikistan, Armenia, Azerbaijan, Georgia, Kyrgyzstan, Uzbekistan, Turkmenistan. The Baltic States joined the EU on 1 May 2005. GEF (Global Environment Facility) - The Global Environment Facility administers funds generated through pledged donations from Governments, which are used for specific topics including projects to address climate change. GHG (Greenhouse Gases) - The six greenhouse gases addressed in the Kyoto Protocol are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulphur hexafluoride (SF6). GREENTIE (Greenhouse Gas Technology Information Exchange) - A worldwide information exchange network that distributes details of suppliers whose technologies help to reduce greenhouse gas emissions. It also includes information on leading international organisations and research and development activities included within International Energy Agency programmes.

GWP (Global Warming Potential) - The potential of a gas to bring about global warming. The warming effect of carbon dioxide is assigned a value of 1, and the effects of other gases are calculated as multiples of this. HMT (Her Majesty's Treasury) - The Department responsible for Government finances. It collects the Climate Change Levy and provides funding to the Carbon Trust. IE (Independent Entity) - Independent entities are bodies accredited by the JI Supervisory Committee, which validate the baseline setting approach and calculations used when determining the emission reduction credits accruing from the project. IEA (International Energy Agency) - The IEA is an autonomous agency linked with the OECD. It acts as an energy forum for the 26 member countries. The Member governments are committed to taking joint measures to meet oil supply emergencies and they have also agreed to share energy information, to co-ordinate their energy policies and to co-operate in the development of rational energy programmes. IET (International Emissions Trading) - International Emissions Trading as specified in Article 17 of the Kyoto Protocol enables Annex-B-countries to trade their Assigned Amount Units (AAUs) between each other. IETA (International Emissions Trading Association) - IETA is a not-for-profit organisation which has been set up to develop a functional international framework for trading greenhouse gas emission reductions. Its membership includes leading international companies from across the carbon trading cycle. IPCC (Intergovernmental Panel on Climate Change) - The World Meteorological Organisation and the United Nations Environment Programme established the Intergovernmental Panel on Climate Change jointly in 1988. Its role is to assess and identify technical and socioeconomic information relevant to Climate Change. IPPC (Integrated Pollution Prevention and Control) - EU Regulations regarding control of pollution, adopting an integrated approach to emissions to air, land and water. JI (Joint Implementation) - Industrialised countries can contribute to their greenhouse gas emission reductions targets by investing in emissions reduction projects in other industrialised (Annex-I) countries and receiving credits called Emission Reduction Units (ERUs). This is advantageous if mitigation costs are lower than those for national action. Joint Implementation (JI) is defined in Article 6 of the Kyoto Protocol. LoA (Letter of Approval) - If an LoA is issued as part of the JI project process by the host government, it demonstrates that the government approves of the transfer of carbon credits equivalent to the reduction in GHG emissions arising from the project. For CDM projects, an LoA from the host government is required before the project can be registered with the CDM Executive Board.

LoE (Letter of Endorsement) - An LoE confirms that in principle the host government is happy to formally consider the project proposal (for a CDM or JI track 2 project). LULUCF (Land Use, Land Use Change & Forestry) - Under the Kyoto Protocol, certain human-induced activities in the land-use, land-use change and forestry (LULUCF) sector that remove greenhouse gases from the atmosphere (afforestation, reforestation and tackling deforestation) may be used by Annex I countries to contribute to meeting their emission targets. MoU (Memorandum of Understanding) - An MoU is essentially an agreement between two parties that aims to formally recognise a joint desire to ultimately conclude an agreement or to achieve goals jointly. It may or may not have legal backing or sanction (depending upon how it is constructed). MVP (Monitoring and Verification Protocol or Plan) - A monitoring and verification plan is a vital aspect of the Project Design Document that aims to support the process of gathering information to demonstrate the project's performance compared to the baseline. This gathering of information is required to facilitate verification by a DOE and ultimately crediting of CERs, ERUs or RMUs. NAP (National Allocation Plan) - In the context of the EU ETS, the NAP defines the Government-determined allowance limit for each installation that has a limit. The limits on emissions will apply from 2005. NGO (Non-Governmental Organisation) - These are usually pressure groups organising campaigns to bring about a change in behaviour concerning a particular activity. NIS (New Independent States) - The Baltic states and others countries formally part of the Soviet Union. NSS (National Strategy Studies) - The National Strategy Studies were launched in 1997 by the World Bank and the Swiss Government and provided a host country driven capacity building programme. The completed studies are available on the World Bank's web site. ODA (Official Development Assistance) - Funds pledged by Governments to be invested in developing countries to assist their development. OE (Operational Entity) - Operational Entities, also referred to as Designated Operational Entities, are independent bodies accredited by the CDM Executive Board (CDM EB) who validate projects (eligibility of project type, baseline, monitoring and verification plan etc) and recommend whether or not the CDM EB should approve the project. They also verify the amount of emission reduction credits which should accrue to the project, prior to the issue of the credits by the CDM EB. OECD (Organisation for Economic Co-operation and Development) - The OECD is an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy.

PCF (Prototype Carbon Fund) - This is a fund administered by the World Bank to invest in projects that will produce GHG emission reductions within the context of the Kyoto Protocol, and to enhance the capacity of all the countries involved through a "learning by doing" process. It brings together host and participant countries for projects, private sector investors and its own technical experts. PDD (Project Design Document) - A document completed by project developers in order to register their project under the Clean Development Mechanism (CDM). PIN (Project Idea Note) - A PIN is often used to describe the project in outline. Organisations may invite project developers to submit PINs, as part of an early process of project selection. Successful project developers may receive some support for developing the project in more detail, so that a PDD can be developed. RCEP (Royal Commission on Environmental Pollution) - The Royal Commission on Environmental Pollution is an independent standing body established in 1970 to advise the Queen, the Government, Parliament and the public on environmental issues. The Twenty-second Report on Energy - The Changing Climate issued in June 2000 recommended a massive shift in the way the UK uses energy, advocating, as a contribution to global efforts to prevent excessive climate change, a 60% reduction in GHG emissions over the next 50 years. REEEP (Renewable Energy and Energy Efficiency Partnership) - REEEP is a coalition of progressive governments, businesses and organisations committed to accelerating the development of renewable and energy efficiency systems. It was initiated at the Johannesburg World Summit on Sustainable Development in 2002. The REEEP is focused on specific actions in three key areas: policy and regulations, innovative finance, and communications. RMUs (Removal Units) - Removal units is the name given to emission reductions arising from for carbon sink projects. ROCs (Renewables Obligation Certificates) - ROCs are tradeable certificates awarded for renewable energy projects in the UK. Energy suppliers have a renewable energy contribution target to meet and if they don't meet their targets directly they can buy ROCs. Alternatively, they can sell any surplus certificates they have as a result of being in excess of their obligation. SBI (Subsidiary Body for Implementation) - An international body of the UNFCCC determining policy and procedures to be tabled at the subsequent Conference of the Parties meetings. The primary remit of SBI is to manage and guide the implementation of the convention. SBSTA (Subsidiary Body for Scientific & Technological Advice) - An international body of the UNFCCC determining policy and procedures to be tabled at the subsequent Conference of the Parties meetings. SBSTA was established under Article 9 of the UNFCCC in order to provide timely information and advice on scientific and technological matters relating to the Convention.

SEPN (Sustainable Energy Policy Network) - This network, co-ordinated by the DTI, consists of the policy units from across government departments, the devolved administrations, regulators and key delivery organisations that between them are jointly responsible for delivering the aims of the Government's Energy White Paper. SMEs (Small and Medium-Sized Enterprises) - The term used for companies with a staff of less than 250. UKCIP (UK Climate Impacts Programme) - Defra funded research into the impacts of Climate Change. UKTI (UK Trade & Investment) - This body, formed in 2003, brings together the former Trade Partners UK and UK Invest, to support exports from UK companies, and encourage inward investment into the UK. It is a joint department of the DTI and the FCO. UNFCCC (United Nations Framework Convention on Climate Change) - The international treaty adopted in June 1992 that commits countries to stabilise human-induced greenhouse gas emissions to levels that would prevent our activities leading to dangerous interference with the climate system. WEOG (Western European & Others Group) - This is one of the five regional groups established for the United Nations member states. The other groups are Asia, Africa, Latin America and Eastern Europe. The only country not included in one of these groups is Israel. WSSD (World Summit on Sustainable Development) - This was also known as the Rio plus 10 conference, held in Johannesburg, South Africa in September 2002. Reference: http://webarchive.nationalarchives.gov.uk