A

ADP

The Ad Hoc Working Group on the Durban Platform for Enhanced Action (ADP) is a subsidiary body that was established in December 2011. The mandate of the ADP is to develop a protocol, another legal instrument or an agreed outcome with legal force under the Convention applicable to all Parties, which is to be completed no later than 2015 in order for it to be adopted at the twenty-first session of the Conference of the Parties (COP) and for it to come into effect and be implemented from 2020.

Ambition gap

Ambition gap commonly describes the gap that exists between the level of ambition of states in terms of their willingness to take ambitious climate action and the degree of action that is in fact necessary to effectively address climate change.

Annex I countries

Within the UNFCCC regime, the term “Annex I countries” refers to a list of countries that includes members of the Organisation for Economic Co-operation and Development (OECD) as well as economies in transition. Annex I countries are subject to additional obligations under the UNFCCC, obliging them to take the lead in combating climate change.

Anthropogenic

Anthropogenic can also be understood as “man-made” and is defined as resulting from or relating to the influence of (harmful) human activity on nature, e.g. the emission of greenhouse gases as a result of human activities and its impact on global warming.

AOSIS

Alliance of Small-Island States is an intergovernmental organization of low-lying coastal and small island countries. The purpose of this organization is to consolidate the voices of Small Island Developing States (SIDS) to address global warming

Auctioning

Within an emissions trading system, auctioning is understood as a more efficient and transparent alternative to free allocation of allowances and refers to a method under which businesses covered by the emissions trading system buy their emission allowances on an auctioning platform.

AWG-LCA

The Ad Hoc Working Group on Long-term Cooperative Action under the Convention (AWG-LCA) was established to conduct a comprehensive process to enable the full, effective and sustained implementation of the Convention through long-term cooperative action, now, up to and beyond 2012, in order to reach an agreed outcome to be presented to the COP for adoption. 

B

Backloading

In the emissions trading context, backloading means that emission allowances are “discontinued” temporarily, i.e. taken from the market for a specified period of time. Backloading is carried out when there is a surplus of emission allowances on the market – e.g. due to an initial oversupply of allowances or an economic crisis - and the carbon price is too low to create an incentive for mitigation actions.

BAT

Best Available Techniques - Pursuant to Directive 2008/1/EC, “best available techniques” means “the most effective and advanced stage in the development of activities and their methods of operation which indicate the practical suitability of particular techniques for providing in principle the basis for emission limit values designed to prevent and, where that is not practicable, generally to reduce emissions and the impact on the environment as a whole.”

Biofuels

Biofuels are liquid, gaseous or solid fuels derived from biological material in a short period of time. There are different ways to produce biofuels and several different types of biofuels (e.g. biodiesel, biogas, wood pellets).

Black carbon

Black carbon is a light-absorbing air pollutant that significantly contributes to climate change. Black carbon is a result of incomplete combustion of fossil fuels, biofuels and biomass. Major sources of black carbon include diesel engines, other machinery, cooking stoves, but also forest fires etc.

C

Cap-and-trade regime

Policy mechanism designed to increase investment in renewable energy technologies by providing an additional payment on top of the electricity market price – either as fixed payment or adapted to changing market prices – on which renewable energy plant operators sell their generated electricity on the market.

Carbon credits

Carbon credits are certificates or permits that allow the emission of one tonne of CO2 or one tonne of carbon dioxide equivalent gases. These carbon credits can be traded on national and/or international carbon markets.

Carbon leakage

Carbon leakage describes the risk that companies relocate their headquarters to a different country with laxer climate laws to avoid being subjected to more demanding climate policies, for example carbon pricing schemes. As a result of carbon leakage, there is no net reduction of emissions as the emissions simply occur elsewhere. The carbon leakage risk varies amongst economic sectors.

CDM

The Clean Development Mechanism is defined in Article 12 of the Kyoto Protocol and is one of the Protocol’s flexible mechanisms. Under the CDM, industrialised countries with emission reduction commitments under the Protocol can finance greenhouse gas reduction projects in developing countries to earn certified emission reduction (CER) credits that count towards meeting the reduction targets under the Protocol.

CEA

Council of Economic Advisers (CEA) is an agency within the Executive Office of the President that advises the President of the United States on economic policy.

Clean technology

The Clean Technology Trade Alliance defines “clean technology” as “a broad base of processes, practices and tools, in any industry that supports a sustainable business approach, including but not limited to: pollution control, resource reduction and management, end of life strategy, waste reduction, energy efficiency, carbon mitigation and profitability.”

Climate proofing

Climate proofing is a term that refers to a process of mainstreaming climate change into mitigation and/or adaptation strategies and programmes. The term is often used in the development context. Here, climate proofing specifically refers to a process of mainstreaming climate change into development strategies and programmes, i.e. development is viewed through a climate change lens.

CO2eq

Carbon dioxide equivalent (CO₂eq) stands for a unit based on the global warming potential (GWP) of different greenhouse gases. The CO₂eq unit measures the environmental impact of one tonne of these greenhouse gases in comparison to the impact of one tonne of CO₂.

Cogeneration

Cogeneration, also known as combined heat and power (CHP), is a term used for the simultaneous production of heat and power/electricity in the same thermodynamic process. Fuels needed in the energy production process are used more efficiently than in power or heat plants, leading to a reduction of greenhouse gas emissions.

Commitment period

Commitment periods define a certain period of time during which certain targets have to be met. Under the Kyoto Protocol, Annex I Parties committed to reduce GHG emissions to an average of five percent against 1990 levels over the first commitment period (1 January 2008 to 31 December 2012). As of March 2015, the Doha Amendment establishing the second commitment period of the Kyoto Protocol has been ratified by 26 countries.

Compliance

Compliance determines whether and to what extent countries meet the commitments set out in an agreement and is thus an indicator of an agreement’s success. The Kyoto Protocol, for example, has established a compliance mechanism that is meant to facilitate, promote and enforce compliance with the commitments under the Protocol.

COP

COP stands for Conference of the Parties. COP is the supreme decision-making body of the Convention. All States that are Parties to the Convention are represented at that event, at which they review the implementation of the Convention and any other legal instruments that the COP adopts and take decisions necessary to promote the effective implementation of the Convention, including institutional and administrative arrangements.

Costs of capital

Rate of return that capital could be expected to earn in an alternative investment of equivalent risk.

E

EIT

EIT stands for Economies in Transition. They refer to countries with "economies in transition", that is, the Russian Federation and several other Central and Eastern European countries such as Slovenia or Romania. These countries are listed as Annex I Parties under the UNFCCC.

Emissions cap

An emissions cap limits the maximum amount of greenhouse gas emissions a country or company is allowed to produce during a certain period of time.

Emissions trading

Emissions trading or cap and trade is a government-mandated, market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants. Various countries, states and groups of companies have adopted such trading systems, notably for mitigating climate change. Under the established system, the “cap and trade system”, an emissions cap limits the maximum amount of certain greenhouse gas emissions, measured in tonnes, companies may emit during a certain period of time. Emissions trading systems can create incentives to reduce emissions.

Energy efficiency

Energy efficiency links the energy output to the energy input, meaning that a system, appliance or activity is more energy efficient than another system, appliance or activity if it delivers the same service for less energy input. Common examples for energy efficient devices are energy-saving light bulbs that produce the same amount of light as conventional light bulbs but use less energy.

EU ETS

The EU Emissions Trading Scheme/System currently operates in the 28 EU Member States and in Iceland, Liechtenstein and Norway (three countries belonging to the European Economic Area). The EU ETS is based on a cap and trade system.

EUAs

The term EU Emission Allowances describes the carbon credits tradable under the EU Emissions Trading Scheme. Each EUA unit equals one tonne of CO₂. EUAs are freely allocated or auctioned.

Externality

A cost or benefit generated by an economic activity which affects an unrelated third party. An externality can be positive (a benefit, such as the learning effects generated by the introduction of new technologies to a new market) or negative (a cost, such as the cost generated to nearby residents by industrial pollution).

F

Final energy consumption

Final energy consumption covers the total energy arriving at and consumed by end users, such as households, industry, agriculture, etc. It excludes all other losses/consumption of energy during generation, transformation and transmission before arriving at the end user.

FIP

Feed-in premium is a policy mechanism designed to increase investment in renewable energy technologies by providing an additional payment on top of the electricity market price – either as fixed payment or adapted to changing market prices – on which renewable energy plant operators sell their generated electricity on the market.

FIT

Feed-in tariffs are policy mechanisms designed to increase investment in renewable energy technologies by guaranteeing continuous retail prices for renewable energy plant operators for a given period.

Fluorinated gases

Fluorinated gases belong to the category of greenhouse gases. Fluorinated gases are gases that nearly exclusively result from human activities (e.g. industrial/manufacturing processes), i.e. there are no natural sources of fluorinated gases. These gases can be found in different products such as fridges or aerosol cans. While they are not ozone-depleting, their Global Warming Potential (GWP) is very high.

Fuel intensity

Fuel intensity is an energy efficiency measure allowing for a comparison of the technological fuel performance of certain processes, vehicles etc. Fuel intensity can be expressed relying on indicators such as the fuel consumption per specified unit (e.g. unit of production).

G

GCF

The Green Climate Fund was established at the 16th Conference of the Parties to the UNFCCC as an operating entity of the UNFCCC Financial Mechanism. It is based in Incheon, South Korea. The GCF will support mitigation and adaptation projects activities in developing country Parties.

 

GDP

GDP stands for gross domestic product. It is a monetary measure of the value of all final goods and services produced in a period.

GEF

The Global Environment Facility was established in 1991; it provides a platform for an international cooperation to address global environmental issues. To that end, 183 countries cooperate under the GEF with international institutions, civil society organisations and the private sector. The GEF funds projects to improve the global environment through activities related to biodiversity, climate change, international waters, land degradation, and chemicals and waste.

GHG

GHG is the abbreviation for greenhouse gases. It is a gas in the atmosphere that absorbs and emits radiation within the thermal infrared range.

H

HFCs

HFCs stands for Hydrofluorocarbons. They contain organic compounds that include fluorine and hydrogen atoms, which are the most common type of organofluorine compounds. Their atmospheric concentrations and contribution to anthropogenic greenhouse gas emissions are rapidly increasing, causing international concern about the radiative forcing caused by HFCs.

I

INDC

Intended Nationally Determined Contributions are the commitments of countries declaring what actions they intend to take under a new global agreement. The request was declared by the United Nations Climate Change Conference.

Information asymmetry

The concept of information asymmetry refers to transactions where one party has more or better knowledge than the other negotiating party and therefore an imbalance of power is created.

IPCC

IPCC stands for the Intergovernmental Panel on Climate Change. It is a scientific intergovernmental body that works under the auspice of the United Nations.

IPR

Intellectual property rights are legal entitlements such as copyrights or patents deriving from the fact that their owners created something with their mind, for example inventions, music, literature etc. In the environmental context, IPRs can affect the possibilities of technology dissemination.

J

Joint implementation

Joint implementation is one of the flexible mechanisms of the Kyoto Protocol (KP), defined in Article 6 of the KP. The mechanism allows Annex B countries (countries with emission reduction or limitation commitments under the KP) to earn Emission Reduction Units (ERUs) equivalent to one tonne of CO₂ through emission reduction/removal projects in another Annex B country. The ERUs can be counted towards meeting the country’s respective KP target.

L

LDCs

A least developed country is to the defintion of the United Nation a country with high poverty, human resource weakness and economic vulnerability. These aspects helps the UN to provide those certain countries with advocacy support and other necessary guidance to graduate to a better status.

Levelised costs of energy

Levelised costs of energy are picturing the ratio of technology lifetime costs to corresponding lifetime electricity generation (€/kWh).

LNG vehicles

LNG vehicles are vehicles that use liquefied natural gas (LNG) as an alternative to other fossil fuels. LNG reduces greenhouse gas emissions by 30% in comparison to conventional fuels used in transport.

LULUCF

Land use, land-use change and forestry (LULUCF) is defined by the United Nations Climate Change Secretariat as "A greenhouse gas inventory sector that covers emissions and removals of greenhouse gases resulting from direct human-induced land use, land-use change and forestry activities."

M

Mainstreaming

Mainstreaming generally means ensuring that a particular issue is constantly taken into account, reflected in and integrated into broader decision making processes and activities, essentially with the result that this issue becomes broadly accepted and is viewed as a normal aspect impacting processes and activities. The term is specifically used, for example, in the context of gender issues (“gender mainstreaming”) or climate change/the environment (“environmental/climate mainstreaming”).

Market-based mechanisms

Market-based mechanisms can provide flexible instruments reducing the costs of meeting emissions targets and are generally assumed to be effective instruments for the reduction of greenhouse gases. There are different market-based mechanisms. Emissions trading systems are one market-based mechanism. The Joint Implementation (JI) mechanism and the Clean Development Mechanism (CDM) established under the Kyoto Protocol are further market-based mechanisms.

MDC

The Marginal Damage Costs provides the estimated value of the impact due to one unit of a pollutant released into the environment.

Monitoring mechanism

Monitoring mechanisms are established to monitor the effective implementation of a specific system’s rules. The monitoring of greenhouse gas emissions, for example, provides an indicator for progress towards achieving emission reduction targets. At the EU level, a greenhouse gas monitoring mechanism was established in 1993 and subject to a number of revisions since then.

Moral hazard

Moral hazard refers to a situation where one party decides on how much risk to take, while it is up to the other party to bear the costs of the risk. This occurs when the risk-taking party has more information about its intentions than the other party (=information asymmetry).

Mtoe

Mtoe is an acronym that stands for million or mega tonnes of oil equivalent. The unit quantifies the amount of energy released when burning one mega tonne of crude oil. The respective Mtoe value of different fuels varies.

N

NAMAs

Nationally appropriate mitigation actions are climate change mitigation actions proposed by developing countries that are to be implemented through, for example, programmes, policies or regulations. NAMAs are supported and enabled by technology, financing and capacity-building. The aim is to reduce emissions below 2020 “business as usual” emission levels.

NAPAs

The National Adaptation Programmes of Action is a workstream under the UNFCCC to support LDCs with the identification and implementation of urgent adaptation needs. The NAPA was established at the COP7 in 2001 as part of the LDC work programme.

NAPs

National adaptation plans - The Cancun Adaptation Framework (CAF) agreed on at the 16th COP in 2010 established the national adaptation plan process to reduce countries’ vulnerability to the impacts of climate change. The NAP process supports all developing countries, especially Least Developed Countries (LDCs). The process assists countries with the identification of medium- and long-term climate adaptation needs, building on the country’s existing (short-term) adaptation activities.

NASs

National Adaptation Strategies - In addition to their efforts to reduce greenhouse gas emissions, some countries have developed NASs to cope with the impacts of climate chance and increase their adaptive capacity. At the EU level, an adaptation strategy has been adopted in 2013. It complements the Member States' adaptation activities.

Net-metering

Net metering is a billing instrument addressing electric consumers who generate their own electricity by operating self-generation electricity systems (e.g. photovoltaic systems). Under a net metering system, consumers are entitled to feed excess electricity into the grid when generating more electricity than they need. The consumers meter measures both the electricity used and the electricity fed into the grid so that the consumers pay the “net” electricity use. Net metering schemes have been introduced in a number of countries, e.g. Denmark, Belgium, Australia, Brazil.

NIMBY

NIMBY is an acronym that stands for “Not in my back yard”. It refers to the phenomenon that residents, for example, welcome a particular measure (e.g. grid development measures required in the context of renewable energy projects) in general but oppose the idea that the implementation of the measure takes place close-by (“in their back yard”).

NMAs

NMA stands for Non-market-based approaches. The NMM operates under the guidance and authority of the Conference of the Parties and supports JI and CDM.

NMMs

NMM stands for New Market-based Mechanism. The NMM operates under the guidance and authority of the Conference of the Parties and supports JI and CDM.

NWP

The Nairobi Work Programme is a workstream under the UNFCCC with the goal of development and dissemination of knowledge and information for supporting adaptation policies and practices. The NWP was established at the COP11 in 2005.

O

OECD

Organisation for Economic Co-operation and Development has the target to promote policies that will improve the economic and social well-being of people around the world. IT provides a forum in which governments can work together to share experiences and seek solutions to common problems.

P

Price floor

In an emissions trading system, a price floor is a (government-) mandated lower limit on the price that allowances can take in the market.

Primary energy

Primary energy is a term that describes the energy form found in natural resources such as coal, crude oil, wind or sunlight prior to conversion or transformation processes transforming the primary energy sources into so-called “secondary energy”. Secondary energy describes more convenient forms of energy such as electricity or refined fuels.

R

Rebound effect

The idea that some of the energy savings achieved by energy efficiency gains will be lost due to resulting changes in behaviour, such as increased consumption of goods or services.

RES

Renewable energy sources are any energy sources which are naturally regenerated on a human timescale (e.g. energy directly or indirectly derived from the sun like photochemical/ photoelectric energy, wind energy, hydropower and photosynthetic energy stored in biomass or energy generated from other natural movements such as geothermal heat and tides)

RPS

Renewable portfolio standards (sometimes also called renewable energy/electricity standards) is a mechanism that requires an increase in energy generation from renewable energy sources (e.g. wind, solar, biomass). Under a RPS, electricity supply companies are required to meet a specified target of electricity produced from renewables. This target can increase over time.

S

SBI

In 2014, the Conference of the Parties established the Subsidiary Body on Implementation (SBI) to replace the Ad Hoc Open-ended Working Group on Review of Implementation of the Convention. It has an advisory role as a well as supports the work of the COP and the CMP.

SBSTA

The Subsidiary Body of Scientific and Technological Advice is a subsidiary body of the UNFCCC Conference of the Parties (COP). It has an advisory role to the COP on matters of science, technology and methodology. It is open to participation by all parties and is multidisciplinary.

SCC

Social Cost of Carbon is a present value of costs that incur with ongoing climate change in the sense of marginal damage caused by an additional tonne of carbon dioxide emissions.

T

TAPs

Under the UNFCCC, Technology action plans are relevant in the context of Technology Needs Assessments (TNAs), which identify and determine the mitigation and adaptation technology priorities of developing country Parties, i.e. provide an understanding of the respective country’s needs for technology transfer. TAPs are based on TNAs and address barriers to the diffusion of the technologies prioritised in the TNAs. TAPs aim to enhance action on mitigation and adaptation to climate change and recommend enabling frameworks for the diffusion of the technological priorities.

Technology Mechanism

The UNFCCC Technology Mechanism was established at the 16th COP in 2010. The mechanism’s purpose is to facilitate enhanced action on technology development and technology transfer, especially to developing countries, in support of climate change mitigation and adaptation. The Technology Mechanism consists of the Technology Executive Committee (TEC) and the Climate Technology Center and Network (CTC&N).

TNA

Technology Needs Assessment - country-driven process of identifying the technology priorities for climate change mitigation and adaptation in developing countries.

U

UNDP

United Nations Development Programme is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life.

UNEP

United Nations Environmental Programme is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and serves as an authoritative advocate for the global environment.

UNFCCC

United Nations Framework Convention on Climate Change: The UNFCCC is a “Rio Convention”, one of three adopted at the “Rio Earth Summit” laso known as United Nations Conference on Environment and Development in 1992.

V

Voluntary agreement

In the context of climate change, the term “voluntary agreements” is used for emissions or energy use reduction agreements of a voluntary nature, often concluded between public and private sectors. Under such voluntary agreements, organisations, companies, institutions, administration agencies etc. agree to meet certain reduction targets exceeding what the respective entity is expected to achieve under existing binding laws.