Carbon Footprint in DC Draft v0-1

8/8/2019 Carbon Footprint in DC Draft v0-1

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Carbon FootprintIn Datacenter


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Introduction

A carbon footprint is a measure of the impact our activities have on the environment, and in particular

climate change. It relates to the amount of greenhouse gases produced in our day-to-day lives through

burning fossil fuels for electricity, heating and transportation etc. The carbon footprint is a

measurement of all greenhouse gases we individually produce and has units of tons (or kg) of carbondioxide equivalent

Greenhouse Gases

Gases that trap heat in the atmosphere are often called greenhouse gases. Some greenhouse gases such

as carbon dioxide occur naturally and are emitted to the atmosphere through natural processes and

human activities. Other greenhouse gases (e.g., fluorinated gases) are created and emitted solely

through human activities. The principal greenhouse gases that enter the atmosphere because of human

activities are:

Carbon Dioxide (CO2): Carbon dioxide enters the atmosphere through the burning of fossil fuels (oil,

natural gas, and coal), solid waste, trees and wood products, and also as a result of other chemical

reactions (e.g., manufacture of cement). Carbon dioxide is also removed from the atmosphere (or

sequestered) when it is absorbed by plants as part of the biological carbon cycle.

Methane (CH4): Methane is emitted during the production and transport of coal, natural gas, and oil.

Methane emissions also result from livestock and other agricultural practices and by the decay of

organic waste in municipal solid waste landfills.

Nitrous Oxide (N2O): Nitrous oxide is emitted during agricultural and industrial activities, as well as

during combustion of fossil fuels and solid waste.

Fluorinated Gases: Hydro fluorocarbons, per fluorocarbons, and sulfur hexafluoride are synthetic,

powerful greenhouse gases that are emitted from a variety of industrial processes. Fluorinated gases are

sometimes used as substitutes for ozone-depleting substances (i.e., CFCs, HCFCs, and halons). These

gases are typically emitted in smaller quantities, but because they are potent greenhouse gases, they

are sometimes referred to as High Global Warming Potential gases (High GWP gases).

A carbon footprint is made up of the sum of two parts, the primary footprint (shown by the green slices

of the pie chart) and the secondary footprint (shown as the yellow slices).


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The primary footprint is a measure of our direct emissions of CO2 from the burning of fossil fuels

including domestic energy consumption and transportation (e.g. car and plane). We have direct control

of these.

The secondary footprint is a measure of the indirect CO2 emissions from the whole lifecycle of products

we use - those associated with their manufacture and eventual breakdown. To make it simple, the more

we buy the more emissions will be caused on our behalf.

Kyoto and Carbon Footprints

The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change

(UNFCCC or FCCC), aimed at fighting global warming. The UNFCCC is an international environmental

treaty with the goal of achieving "stabilization of greenhouse gas concentrations in the atmosphere at a

level that would minimize dangerous anthropogenic interference with the climate system.

The Protocol was initially adopted on 11 December 1997 in Kyoto, Japan and entered into force on 16

February 2005. As of November 2009, 187 countries have signed and ratified the protocol. The Kyoto

Protocol envisages reduction of Green House Gases by 5.2% in the period 2008-12.

Emissions trading

Kyoto provides for a 'cap and trade' system which imposes national caps on the emissions of countries.

Cap-and-trade schemes are the most popular way to regulate carbon dioxide (CO2) and other emissions.

The scheme's governing body begins by setting a cap on allowable emissions. It then distributes or

auctions off emissions allowances that total the cap. Member firms that do not have enough allowances

to cover their emissions must either make reductions or buy another firm's spare credits. Members with

extra allowances can sell them or bank them for future use. Cap-and-trade schemes can be eithermandatory or voluntary.

On average, this cap requires countries to reduce their emissions by 5.2% below their 1990 baseline

over the 2008 to 2012 period. Although these caps are national-level commitments, in practice, most

countries will devolve their emissions targets to individual industrial entities, such as a power plant or

paper factory. One example of a 'cap and trade' system is the 'EU ETS'.

The ultimate buyers of credits are often individual companies that expect emissions to exceed their

quota, their assigned allocation units, AAUs or 'allowances' for short. Typically, they will purchase credits

directly from another party with excess allowances, from a broker, from a JI/CDM developer, or on an

exchange.

The primary purpose of the Protocol was to make developed countries pay for their ways with emissions

while at the same time monetarily rewarding countries with good behavior in this regard. Since

developing countries can start with clean technologies, they will be rewarded by those stuck with dirty

ones. This system poises to become a big machine for partially transferring wealth from wealthy,

industrialized countries to poor, undeveloped countries. A CER or carbon Credit is defined as the unit

related to reduction of 1 ton of CO2 emission from the baseline of the project activity.


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Since allowances and carbon credits are tradable instruments with a transparent price, financial

investors can buy them on the spot market for speculation purposes, or link them to futures contracts. A

high volume of trading in this secondary market helps price discovery and liquidity, and in this way helps

to keep down costs and set a clear price signal in CO2 which helps businesses to plan investments. This

market has grown substantially, with banks, brokers, funds, arbitrageurs and private traders now

participating in a market valued at about $60 billion in 2007.

Although Kyoto created a framework and a set of rules for a global carbon market, there are in practice

several distinct schemes or markets in operation today, with varying degrees of linkages among them.

Kyoto enables a group of several annex I countries to create a market-within-a-market together. The EU

elected to be treated as such a group, and created the EU Emissions Trading Scheme (ETS). The EU ETS

uses EAUs (EU Allowance Units), each equivalent to a Kyoto AAU.

The sources of Kyoto credits are the Clean Development Mechanism (CDM) and Joint Implementation

(JI) projects. The CDM allows the creation of new carbon credits by developing emission reduction

projects, while JI allows project-specific credits to be converted from existing credits. CDM projects

produce Certified Emission Reductions (CERs), and JI projects produce Emission Reduction Units (ERUs),

each equivalent to one AAU.

India and Carbon emission

India signed and ratified the Kyoto Protocol in August, 2002. Since India is exempted from the

framework of the treaty, it is expected to gain from the protocol in terms of transfer of technology and

related foreign investments. At the G8 meeting in June 2005, Indian Prime Minister Dr.Manmohan Singh

pointed out that the per-capita emission rates of the developing countries are a tiny fraction of those in

the developed world. Following the principle of common but differentiated responsibility, India

maintains that the major responsibility of curbing emission rests with the developed countries, which

have accumulated emissions over a long period of time. However, the U.S. and other Western nationsassert that India, along with China, will account for most of the emissions in the coming decades, owing

to their rapid industrialization and economic growth.

National Clean Development Mechanism Authority

The Seventh Conference of Parties (COP-7) to the UNFCCC decided that Parties participating in CDM

should designate a National Authority for the CDM and as per the CDM project cycle, a project proposal

should include written approval of voluntary participation from the Designated National Authority of

each country and confirmation that the project activity assists the host country in achieving sustainable

development.

Accordingly the Central Government constituted the National Clean Development Mechanism (CDM)

Authority for the purpose of protecting and improving the quality of environment in terms of the Kyoto

Protocol

The purpose of the Clean Development Mechanism (CDM) is defined in Article 12 of the Kyoto Protocol

to the United Nations Framework Convention on Climate Change. The CDM has a two-fold purpose: (a)


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to assist developing country Parties in achieving sustainable development, thereby contributing to the

ultimate objective of the Convention, and (b) to assist developed country Parties in achieving

compliance with part of their quantified emission limitation and reduction commitments under Article 3.

Carbon Credits are sold to entities, like power utilities, which have emission reduction targets to achieve

& find it cheaper to buy offsetting certificate rather than do a clean-up in their backyard. Type of

projects, which are being applied for CDM and which can be of valuable potential, are:

Energy efficiency projects

Increasing building efficiency (Concept of Green Building/LEED Rating)

Increasing commercial/industrial energy efficiency (Renovation & Modernization of old power plants)

Fuel switching from more carbon intensive fuels to less carbon intensive fuels; and

Also includes re-powering, upgrading instrumentation, controls, and/or equipment

Transport

Improvements in vehicle fuel efficiency by the introduction of new technologies

Changes in vehicles and/or fuel type, for example, switch to electric cars or fuel cell vehicles (CNG/Bio

fuels)

Switch of transport mode, e.g. changing to less carbon intensive means of transport like trains (Metro

in Delhi); and

Reducing the frequency of the transport activity

Methane recovery

Animal waste methane recovery & utilization

Installing an anaerobic digester & utilizing methane to produce energy

Coal mine methane recovery

Collection & utilization of fugitive methane from coal mining;

Capture of biogas

Landfill methane recovery and utilization

Capture & utilization of fugitive gas from gas pipelines;

Methane collection and utilization from sewage/industrial waste treatment facilities

Industrial process changes

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Any industrial process change resulting in the reduction of any category greenhouse gas emissions

Cogeneration

Use of waste heat from electric generation, such as exhaust from gas turbines, for industrial purposes or

heating (e.g. Distillery-Molasses/ bagasse)


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Agricultural sector

Energy efficiency improvements or switching to less carbon intensive energy sources for water pumps

(irrigation)

Methane reductions in rice cultivation

Reducing animal waste or using produced animal waste for energy generation (see also under

methane recovery)

Any other changes in an agricultural practices resulting in reduction of any category of greenhouse gas

emissions

Baselines

The project proposal must clearly and transparently describe methodology of determination of baseline.

It should confirm to following:

Baselines should be precise, transparent, comparable and workable;

Should avoid overestimation;

The methodology for determination of baseline should be homogeneous and reliable;

Potential errors should be indicated;

System boundaries of baselines should be established;

Interval between updates of baselines should be clearly described;

Role of externalities should be brought out (social, economic and environmental);

Should include historic emission data-sets wherever available;

Lifetime of project cycle should be clearly mentioned;

The project proponent could develop a new methodology for its project activity or could use one of the

approved methodologies by the CDM Executive Board. For small scale CDM projects, the simplified

procedures can be used by the project proponent. The project proposal should indicate the formulae

used for calculating GHG offsets in the project and baseline scenario. Leakage, if any, within or outside

the project boundary, should be clearly described. Determination of alternative project, which wouldhave come up in absence of proposed CDM project activity should also be described in the project

proposal.

Approval Procedure for Program of Activities (PoAs)

The Coordinator/ Managing Entity of a PoA is required to submit the PoA-DD, CPA-DD, CPA-DD (Typical)

& PCN to the National CDM Authority for HCA. CPAs (joining a PoA) that do not require any approval

from any state /central agency e.g. replacement of bulbs, energy efficiency measures etc., the

Coordinator/ Managing Entity of the PoA shall post facto inform the Member Secretary, NCDMA , the

salient details of CPAs added on a bi-annual basis. However for CPAs that needs any state / centralclearance, such CPAs shall be submitted to the National CDM Authority for approval as in the case of

project based CDM activities.


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Procedure for Submitting CDM Project Reports to the National CDM Authority (NCDMA).

Carbon Trading for Data Center

While these developments are not specifically aimed at data centers, they will impact how data centers

operate and the amount of energy used. As a result, data centers will need to implement mechanisms

for monitoring, managing and reporting carbon emissions. Although data centers generally do not, by

themselves, spew carbon dioxide into the atmosphere, their operation does require large amounts of

energy. Much of this energy is generated through fossil fuels, resulting in carbon dioxide emissions from

power plants, for instance. Thus, data centers are a target of emissions legislation.

By improving their data center management processes, organizations can gain a comprehensive view of

energy consumption and identify opportunities for improving efficiency. This increased discipline and

maturity to data center management will help uncover carbon reduction opportunities and allow better

management and tracking of data center carbon reduction commitments.


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Improving data center manageme

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The key factors affect the carbon footprint of a datacenter

1. Location

2. IT Load

3. Electrical Efficiency

First Key Factor - Location

Weather variables such as outdoor temperature and humidity levels are an influencing factor on energy

consumption. A geographical location which experiences extreme temperatures and humidity levels will

consume more energy as the data center physical infrastructure systems work harder to maintain

consistent, moderate temperature and humidity levels. The local source of power generation will also

have a major impact on a data centers carbon footprint such as nuclear, thermal, wind etc.

Second Key Factor - IT Load

IT load reflects how much power the IT equipment in the datacenter consumes. The IT load consists of

all the IT hardware components that make up the business architecture; servers, routers, computers,

storage devices, telecommunications equipments etc. Load can go up or down depends on the

processor usage. The higher the load the more power will be required to keep it up and running and thehigher the carbon footprint.

Third key factor: Electrical efficiency

The traditional practice in datacenters of over sizing the physical infrastructure to support the IT load

has a very negative impact overall data center efficiency and therefore impacts carbon footprint.

A number of factors a datacenter can bring efficient up or down. Everything from the design of the data

center like rack layout, power architecture, cooling infrastructure, server selection, level of redundancy

impacts efficiency.

Calculating the Carbon footprint in a datacenter

The calculation of carbon footprint in a datacenter has multiple stages

Calculating the total power

At this stage the total IT load is calculated to arrive the total utility power required for a datacenter. The

design factors play a key role in arriving at this calculation.

INPUT OUTPUT

Total no of servers

Server power density

Design PUE

Total IT Load

Total Utility Power

Datacenter Energy Efficiency

In this stage the actual efficiency of the datacenter in terms of PUE is calculated. The IT load, Utility load

and the efficiency rating of each supporting systems are considered for this calculation


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INPUT OUTPUT

Total IT Load

Total Utility Power

Energy efficiency rating of equipments

Redundant components

Other energy saving initiatives

PUE

DCiE

IT carbon and energy allocation

The carbon emission in tons from the IT load, utility services is assessed in this stage. The energy cost as

per the utility service providers in the datacenter location

INPUT OUTPUT

Datacenter Parameters

PUE / DCiE, UPS Load

IT Load breakup

Number of servers

Total KWh

Electricity Cost

CO2 tons

Assessed CO2 cost

Location Parameters

Electricity Cost

CO2 emissions kg/kwh

Cost per ton of CO2

Datacenter Carbon Calculation

In the final step the datacenter carbon emission is calculated, in this the greenness of a datacenter is

calculated by converting the energy usage rates into carbon emissions. This gives the impact of carbon

emission by changing the datacenter efficiency, IT load and location. The total kilowatt hours consumed

is computed based on the PUE and IT loads multiplied by the location specific electricity and carbon

emission rates.

In the cap and trade method the carbon emission is always assessed against set target for carbon

emission reduction. In this method the current emission rates are improved based on a set target for

carbon emission reduction.

INPUT OUTPUT

Current

PUE, IT Load

Savings in electricity cost

Reduction in CO2 emissions per year

Target

PUE, IT Load, Location Parameters,

Electricity Cost, CO2 emissions kg/kwh,

Cost per ton of CO2

Location Parameters

Electricity Cost, CO2 emissions kg/kwh

Cost per ton of CO2


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GLOSSARY

AAU

Assigned Amount Unit. Allowances for carbon

emissions allocated to developed countries up to theirtarget level under the Kyoto Protocol. These

allowances are tradable under Kyoto's international

emission trading mechanisms in place from 2008 to

2012. Each AAU equates to one ton of CO2e. See Green

investment scheme for 'greened AAUs'.

Additionality

A key eligibility test for projects designed to generate

carbon credits under the Kyoto Protocol's CDM and JI

programs, as well as other carbon offset schemes. This

test dictates that projects are only eligible for carbon

credits if the resulting emission reductions weren't

going to happen anyway, i.e. They are additional to

what would have occurred without the carbon credit

incentive.

Annex I, Annex B

The signatory nations to the Kyoto Protocol that are

subject to caps on their emissions of greenhouse gases

and committed to reduction targets countries with

developed economies. Annex I refers to the 36

countries identified for reduction in the UNFCCC while

the Annex B is an adjusted list of 39 countries

identified under the more recent Kyoto Protocol.

Annex B countries have their reduction targets

formally statedAnnex II

A subset of Annex 1/B, Annex II countries is signatory

nations to the UNFCCC which are also members of the

OECD - the most industrialized economies. They have

extra obligations to help developing nations combat

climate change via technology transfer and financial

help.

A/R Afforestation and reforestation.

Term given to the class of projects devoted to the

planting of trees on unforested land for carbon

emissions reduction and other environmental benefits.

Under the Kyoto Protocol and the CDM, both

afforestation and reforestation are defined by strict

sets of rules.

Asia-Pacific Partnership on Clean Development and

Climate (APP, AP6)

The Asia-Pacific climate pact is a rival international

climate change agreement to the Kyoto Protocol. Its

initiators in 2005 were the United States and Australia,

the only two industrialized nations not to have ratified

the Kyoto treaty at that time (Australia since has

ratified in 2007). The group also includes China, India,

Japan, South Korea and now Canada. APP rejectsKyoto-style emission reduction targets in favor of

encouraging business to invest in clean fossil-fuel

technology and renewable energy.

Banking and borrowing

The ability under an emissions trading scheme to save

emission permits issued in one year for use in later

years (banking), or to bring forward some of a future

year's permit allocation for use in the current year

(borrowing).

Baseline and credit

A type of emissions trading scheme where firms are

encouraged to reduce their greenhouse gas emissions

below a projected business as usual path of

increasing emissions. Any reductions below that future

path earn credits for the difference which can be sold

to other emitters struggling to contain increases to

baseline levels. See also cap and trade.

Biochar

Carbon-rich charcoal created when plant matter is

heated in an oxygen-free environment. Carbon that

would otherwise combine with oxygen, burn, and be

emitted to the air is contained in the charcoal, which

can be used to fertilize soils or make biofuels.

Biofuels

Biofuels are renewable fuels made from plants that

can be used to supplement or replace the fossil fuels

petroleum and diesel used for 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. Depending on the processes used to make

biofuels, greenhouse emissions from cars and fuel-

powered machinery can be substantially reduced by

their use.

Bunker fuels

In Kyoto Protocol terms, these are fuels used by the

international shipping and aviation industries. These

industries are not included in the nation-based

reporting of greenhouse emissions and have to be

measured separately. In general, and historically, the

term applies only to fuel oil used by ships.


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Cap and trade

The most popular type of emissions trading scheme

where emissions are subject to a cap, permits are

issued up to that cap, and a market allows those

emitting less than their quota of the cap to sell their

excess permits to emitters needing to buy extra to

meet their quota. See also baseline and credit.Carbon dioxide equivalent, CO2e

Carbon footprint

The global warming impact of human activities in

terms of the amount of greenhouse gases they

produce. The emissions associated with the use of

power, transport, food and other consumption for an

individual, family or organization are added up to give

one comparable measure in units of carbon dioxide

equivalent.

Carbon neutral

An individual, household or organization that is

responsible for no net emissions of greenhouse gases

from all its activities is considered "carbon neutral".

Emissions must be cut to a minimum and any

necessary emissions then offset by emission reducing

activities elsewhere. Buying accredited clean electricity

helps cut household or office greenhouse emissions,

while investing in sustainable energy projects or

afforestation schemes are examples of offsets.

Carbon positive

An individual, household or organization that is

responsible for taking more greenhouse gases out of

the atmosphere than it emits is said to be "carbon

positive". This requires minimizing one's ownemissions and more than offsetting remaining

emissions by paying for activities such as forest

planting or investing in renewable energy.

Carbon price

An economic value placed on the emission of

greenhouse gases into the atmosphere from human

activity. This price is designed to create a disincentive

for emissions and incentive to avoid them. A carbon

price takes the form of either a carbon tax or an

emissions trading scheme.

Carbon sink

Natural and potentially man-made features on the

Earth's surface where carbon dioxide is removed from

the atmosphere. The major natural sinks are forests

and oceans which have processes that absorb CO2.

Carbon sinks are vital to fighting global warming

because they counteract sources of carbon emissions,

such as industry and transport.

Carbon tariff

Import duty levied by countries with greenhouse gas

emission caps in place on carbon-intensive goods from

countries without such controls in place. The intention

is to protect the competitiveness of local industries

whose goods have higher prices than their imported

rivals because they reflect the cost of carbon.

Carbon tax

One form of carbon price on greenhouse gas

emissions. Set by governments, a price on emissions is

fixed and emitters are allowed to emit whatever they

want at that price. Emissions trading prices carbon in

the reverse approach; fixing emissions, with price

varying

CCSCarbon capture and storage

A two-step measure to prevent carbon dioxide

emissions from the burning of fossil fuels entering the

atmosphere, particularly from power generation.

Instead of CO2 being vented, it is contained and

pumped underground under pressure, where it cannot

contribute to global warming. This technology is still in

its infancy with results largely unproven. Also known as

one form of 'carbon sequestration'.

CDM Clean Development Mechanism

A Kyoto Protocol initiative under which projects set up

in developing countries to reduce greenhouse gas

emissions generate tradable credits called CERs, the

first step towards a global carbon market. These

credits can be used by industrialized nations to offset

carbon emissions at home and meet their Kyoto

reduction targets. The projects include renewable

energy generation, reforestation and clean fuelsswitching. See also JI

CER

Certified Emission Reduction. A credit generated

under Kyotos Clean Development Mechanism (CDM)

for the reduction of emissions of greenhouse gases

equal to one ton of CO2-equivalent. They are designed

to be used by industrialized countries to count toward

their Kyoto targets but can also be used by EU

companies and governments as offsets against their

emissions under the EU Emissions Trading Scheme. See

also Offsets and CER market reports.

CFI -Carbon Financial Instrument

The name of the futures contract through which

parcels of emission permits are traded on the

European Climate Exchange and the Chicago Climate

Exchange. Each CFI consists of 100 permits (mandatory

EUAs in Europe and voluntary allowances and offsets

on the Chicago market) covering the emission of 100

tons of CO2.


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CO2e -Carbon dioxide equivalent. See MtCO2

Co-generation

Combined heat and power energy use from a single

fuel input, e.g. when the heat produced from the

burning of fossil fuels in the generation of electricity is

captured and used for heating or further energyproduction.

Copenhagen Accord

The four-nation agreement struck by the US, China,

India and South Africa at the 2009 Copenhagen climate

conference and noted by the UN climate convention

Council of the Parties. A limited political deal that the

signatories hope will form the basis of a new global

climate agreement from 2013. More

COP/MOP

Shorthand for the Council of the Parties, or signatory

nations, to the UN Climate Change Convention and the

Meeting of the Parties of the Kyoto Protocol to the

Convention. The fifteenth now-annual conference will

take place in Copenhagen in 2009 (COP15) and has

been set as the deadline for negotiating an extension

of Kyoto to a second commitment period or a new

replacement treaty.

Cost of carry

Generally, the costs associated with holding an

investment over time - opportunity costs, fees and

other expenses. In carbon markets, where the bulk of

trade in emission allowances and credits is in forwardcontracts for their future delivery, it's largely the time

value of money, or the interest rate. Here, 'cost of

carry' represents the investment return foregone by

the seller (who does not receive the sale proceeds until

delivery) over the contract period, and is reflected in a

premium built into forward carbon prices over spot

prices.

EITs -Economies in Transition.

Those nations in Annex I of the Kyoto Protocol

considered developed but currently in transition to a

market economy. Generally the nations and former

republics of the old Soviet bloc

Emissions trading

One form of carbon price creating a market-based

system for regulating the emission of greenhouse

gases. The quantity of emissions is controlled and the

price allowed to vary by the issuing of tradable

emission permits. These rights to emit can be traded in

a commercial market under an emissions trading

scheme. More in FAQs

ERPA -Emissions Reduction Purchase Agreement

Contracts governing the sale of CER carbon credits

from UN CDM and JI projects. Heavily used for forward

sales of CERs not yet issued, in projects underdevelopment, as a means of project financing. The

price of such primary CERs is discounted in ERPAs to

reflect the risks of non-delivery

ERU -Emission Reduction Unit

Tradable credits generated from activities to reduce

greenhouse emissions in industrialized countries,

particularly those of the former Soviet-bloc, under the

Kyoto Protocols Joint Implementation (JI) mechanism.

ETS - Emissions Trading Scheme.

EU-ETS European Union Emissions Trading Scheme.

EUA-European Union Allowances

Tradable emission credits from the EU Emissions

Trading Scheme. Each allowance carries the right to

emit one ton of carbon dioxide.

Food miles

Refers to the distance foodstuffs travel through the

various stages of production and processing to the

point at which they reach the consumer. A measure of

both distance traveled and mode of transportation

allows comparisons of the energy use and the

contribution to greenhouse emissions associated with

various food products and their origin.Fugitive emissions

Unintended leaks of gases into the atmosphere from

the extraction, processing or transportation of fossil

fuels. For example, gas emissions from leaking

pipelines or methane escaping from the ground during

the mining of coal.

GHG

Greenhouse gas

Greenhouse intensity

Refers to the ratio of a nations greenhouse gas

emissions to its GDP, or the volume of emissions per

unit of economic output. A countrys greenhouse

intensity may often be falling yet overall emissions are

rising due to an expanding economy. Greenhouse

intensity measures are also used at a company, plant

or industry sector level.

GIS -Green investment scheme

An arrangement whereby Annex 1 industrialized

countries buy the surplus Kyoto carbon emissions


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credits, AAUs, of eastern European countries on the

condition they invest the proceeds in low-emissions

technology. GISs came about due to pressure on

former Soviet bloc countries to use these surpluses,

known as "hot air", responsibly, i.e. to build

environmentally-sustainable industry. Credits traded

through GISs are termed 'greened AAUs'.GWP -Global warming potential

This refers to the potency of greenhouse gases, that is,

their ability to trap heat in the atmosphere. The GWP

is a numerical measure relative to carbon dioxide, the

most abundant greenhouse gas. So carbon dioxide

itself has a GWP of 1. For the GWPs of all greenhouse

gases

Hot air

Also called paper credits; the term refers to carbon

credits for emission reductions that occurred without

any deliberate action. The prime example being the

carbon credits arising under Kyoto in Russia and the

Ukraine where the collapse of Soviet-era industry in

the 1990s has seen emissions fall well below 1990

levels, the base year for reduction calculations,

without the implementation of any climate-related

measures.

IPCC - Intergovernmental Panel on Climate Change

An international scientific panel charged with

informing the UNFCCC with the latest scientific

evidence on climate change. With representatives

from 130 nations it is the world's pre-eminent scientific

advisory body on global warming

ITL -International Transaction LogThe means by which carbon allowances and credits

generated under the mechanisms of the Kyoto

Protocol - AAUs, CERs and ERUs - are traded between

countries. An online IT platform that connects UN and

national greenhouse emissions registries, facilitating

the emerging global carbon market

JI - Joint Implementation

A Kyoto Protocol mechanism which allows developed

countries, particularly those in transition to a market

economy, to host carbon-reducing projects funded by

another developed country. The arrangement sees the

credits generated, called ERUs, go to the investor

country while the emission allowances (AAUs) of the

host country are reduced by the same amount.

Kyoto Protocol Leakage, carbon leakage

Occurs when laws or activities designed to cut

greenhouse gas emissions implemented in one

jurisdiction or project area lead to the shifting of the

targeted emitting activities elsewhere, thus

undermining the attempt to reduce emissions.

LULUCF -Land use, land use change and forestry

The term given to the sector covering reforestation &

afforestation, land clearing and agriculture. Each of

these activities can make significant contributions toatmospheric carbon emissions and/or removals.

MRV -Monitoring, Reporting & Verification

Measurable, Reportable, Verifiable

The underpinnings of robust, genuine carbon

emissions reductions. Particularly used in the context

of forest carbon activities where such standards pose

great challenges. Before emissions reduction or carbon

sequestration activity can deliver credible market

credits, activities generating them must be accurately

measured, reported transparently, and verified by

third parties

NAPs - National Allocation Plans

These set out the overall emissions cap for countries in

phases I and II of the EU Emissions Trading Scheme up

to 2012, and the emissions allowances that each sector

and individual installation within each country

receives.

Offsets -Carbon offsets, offset credits

Credits issued in return for a reduction of atmospheric

carbon emissions through projects such as the

provision of renewable energy to replace fossil fuel

energy, or reforesting cleared land to create a carbonsink. By paying for such emission reducing activities,

individuals and organizations can use the resulting

credits to offset their own emissions, either voluntarily

or under the rules of most emissions trading schemes.

One offset credit equates to an

emission reduction of one ton of CO2.

PDD -Project Design Document

The official application drawn up by an entity applying

for project approval under the UN Clean Development

Mechanism (CDM) or a verification standard in the

voluntary carbon market. PDDs must be validated by

an independent third party, then approved and

registered by the CDM Executive Board or voluntary

standard provider before a project qualifies as a CER or

VER carbon credit earner.

Permanence

A key pre-requisite for the credibility of any carbon

sequestration activity, particularly tree planting; that it

have in place safeguards to cover the possibility that

carbon removed from the atmosphere may be


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released in the future, for example, due to fire, disease

or logging. In practice, ongoing verification of planted

trees must take place where carbon offset credits have

been generated for those carbon reductions.

REDD - Reduced Emissions from Deforestation and

Degradation. An initiative to cut greenhouse gasemissions associated with forest clearing by the

inclusion of avoided deforestation in carbon market

mechanisms. More simply, payment in return for the

active preservation of existing forests

REDD-plus, REDD+

The extra consideration in reducing greenhouse

emissions beyond deforestation and forest

degradation (REDD) being given to sustainable forest

management and afforestation/reforestation in

developing countries.

RGGI - Regional Greenhouse Gas Initiative

A ten-state regional US emissions cap-and-trade

scheme covering power plants from 2009. Scheduled

to run until the end of 2018 unless superseded by a

federal scheme, current members are Connecticut,

Delaware, Maine, Maryland, Massachusetts, New

Hampshire, New Jersey, New York, Rhode Island and

Vermont.

RMUs -Removal Units

Credits earned from land use, land-use change and

forestry projects (LULUCF) in industrialized countries,

including such projects under the Kyoto Protocols JImechanism.

tCO2e, MtCO2e

Tons of carbon dioxide equivalent, and millions of tons

of carbon dioxide equivalent. This is the metric

measurement unit for greenhouse emissions. The

global warming impact of all greenhouse gases is

measured in terms of equivalency to the impact of

carbon dioxide (CO2). For example, one million tons of

emitted methane, a far more potent greenhouse gas

than carbon dioxide, is measured as 23 million tons of

CO2-equivalent, or 23 MtCO2e

Term offsets, temporary credits

Non-lasting carbon offset credits of limited life span,

typically five years, issued for land-based carbon

sequestration. Egs. Include temporary CERs (tCERs) in

CDM forestry and proposed farm and forest offsets in

the US cap-and-trade bill. Such offsets must be

replaced on expiry, either by new ones issued after a

successful re-verification of the project showing

emissions reductions still intact, or, by buyingpermanent offsets elsewhere. Conceived as a way of

dealing with potential non-permanence of carbon

storage in trees, which may be cut down or otherwise

die and see carbon returned to the atmosphere.

UNFCCC - United Nations Framework Convention on

Climate Change. Also referred to informally as the UN

climate change convention. It is the international

agreement for action on climate change and was

drawn up in 1992. A framework was agreed for action

aimed at stabilizing atmospheric concentrations of

greenhouse gases. The UNFCCC entered into force on

March 1994 and currently has 192 signatory parties.

The UNFCCC in turn agreed the Kyoto Protocol in 1997

to implement emission reductions in industrialized

countries up to 2012 and is currently seeking the

negotiation of a new treaty to extend commitments

beyond 2012

Validation

The stage in carbon offset project development where

an independent third-party audits a project's design to

ensure it meets the rules of a prescribed standard,

such as the CDM. Checks include whether emissions

reductions and other benefits are real and permanentcompared to a business-as-usual baseline.

VCU- Voluntary Carbon Unit

The name of carbon offset credits specifically verified

to the Voluntary Carbon Standard, one of the leading

independent standards established to demonstrate

integrity in project-based emission reductions in the

unregulated voluntary carbon market.

VERs - Verified Emission Reductions

The general name given to carbon offset credits in the

voluntary carbon market. These are tradable credits

for greenhouse emission reductions generated to meet

voluntary demand for carbon credits by organizations

and individuals wanting to offset their own emissions.

Carbon Footprint in DC Draft v0-1

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