Greenhouse Gas Terms

Annex I: Annex I consists of countries that are developing or have transition economies. These countries are those listed as part of the Organization of Economic Development (OECD), as well as those in Central and Eastern Europe, excluding the countries formerly known as Albania and Yugoslavia. These countries have agreed under article 4.2 of the Kyoto protocol to reduce their emissions, and if they choose to ratify the Protocol, makes them eligible for emissions targets between 2008 and 2012.

Annex II: Annex II countries have firmly established economies and are well developed. Under the Kyoto Protocol, it is their responsibility to assist developing nations (Annex I) countries with creating sustainable resources and financing. Annex II countries are the original 24 OECD members, with the addition of the European Union.

Banking: The act of reserving allowances for a year in the future. Emissions generated as CERS during the period between 2000 and 2008 may be used in meeting standards in the first compliance period.

Baseline: The standard of emissions against which changes are measured.

Joint Implementation (JI): Kyoto establishes that developed countries may generate CERs through Joint Implementation, collaboration between the developed country and a developing country. Developed countries may finance the construction new renewable facilities overseas in developing countries to generate CERs.

OECD: OECD stands for the Organization for Economic Cooperation and Development. This group consists of Australia, Austria, Belgium, Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, South Korea, Japan, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Spain, Sweden, Switzerland, Turkey, UK and the USA.

VER: Voluntary Emissions Reductions are not for compliance, but instead are individuals or organizations seeking to offset their carbon emissions.