ACRONYMS AND ABBREVIATIONS

• CER (Certified Emission Reduction) – Certificates emitted by the Executive Board and conceded to the project’s proponent when the project is already validated and registered with the Executive Board, and having fulfilled the requirement of activities monitoring, which happens every year after registering. This monitoring has the objective of ensuring that goals proposed in theory are reached in practice. They are commonly called carbon credits.


• DNA (Designated National Authority) – This abbreviation is destined to the authority of every host country who has UNO (Executive Board)  accredited competence to carry out the first project analysis before sending it to the Executive Board for the international stage.  In Brazil, this authority is an Inter-ministry Committee led by the Ministry of Science and Technology.


• DOE (Designated Operational Entity) – The entities accredited and designated by the Executive Board to require project validation from the DNA and the EB through a validation report. This report should describe how the project collaborates for the sustainable development of the area and also have a perspective of possible financial and technical additional.  These entities are auditing companies, as DNV, SGS, Bureau Veritas, etc.


• EB (Executive Board): The UNO department that has the power to validate, register and certificate a project, that is, the department that grants carbon credits to the project’s promoter after the final approval. It is UNO´s highest authority as far as carbon credits are concerned.


• PIN (Project Idea Note): A document with the initial transcription about the project’s activities, the localization, the technology to be implemented, the proponents, and the advisor, amongst others.


• PDD (Project Design Document):  The instrument that initiates the validation, registration and certification process, according to the Kyoto Protocol regulations, before the Designated National Authority and other accredited entities.


• Advisor:  The companies that advise clients who have potential to develop CDM projects in the process of validating, registering and certifying their projects. This service means turning a project eligible by the Executive Board by following all the conditions and requirements of the Kyoto Protocol.  Example: JMalucelli & CMC Ambiental.


• MSW (Municipal Solid Waste):  This abbreviation refers to CDM Projects that aim to treat urban solid waste. It is used to denominate and delimitate the segment destined to minimize methane greenhouse gas emissions, present in sanitary landfills, urban garbage dump spaces and mills.


• AWMS (Animal Waste Management System): This abbreviation identifies and denominates projects that deal with sustainable management of dejects from intensively bred or confined animals.


• CDM (Clean Development Mechanism): Cited in clause 12 of the Kyoto Protocol, it is a flexible mechanism that helps developed countries to reach reduction goals established by the Protocol.  Thus, CDM is a form of transferring technologies and possibilities of foreign investments with the reduction of greenhouse gas emissions, and one of the requirements of the Kyoto Protocol for the generation of carbon credits.  Besides helping countries to reduce emissions through the commercialization of carbon credits, which will be deducted  from the buyer’s emissions, it  favors sustainable development in developed countries.


• Annex-I Countries: This classification consists of the list of developed countries that signed and ratified the Protocol, who committed themselves to reduce GEE emissions in their territories. Those countries share the major responsibility for global warming, as they developed in a disorganized way, contributing for the elevated concentration of greenhouse gases in the atmosphere, and consequently fomenting global warming.  Ex: Australia, France, England, amongst others.


• Non-Annex I Countries: This group is formed by the developing countries, which do not have reduction goals, but the incumbency of helping Annex-I countries to reduce their emissions through the generation of carbon credits that will be negotiated with developed countries. Ex: Brazil, India, China, amongst others.


• GHG (Greenhouse Gas): This abbreviation refers to the great villain of global warming – the greenhouse effect gases.  They are the gases emitted by the use of energy produced from fossil fuels, by garbage decomposition, forest degradation, lack of treatment of animal dejects and effluents, etc. (Ex: Carbon Dioxide, methane, N2O, HFC23).


• VER (Verified Emission Reduction): They correspond to credits coming from projects that contribute for the reduction of greenhouse gas emissions, but do not fulfill the Kyoto protocol demands and requirements.  Consequently, those VERs are negotiable in voluntary markets like the Chicago Climate Exchange and their price is negotiated at a rate below CERs rate.


• CMC (Carbon Management Consulting): A multinational company that stands amongst the most experienced in the world in the consulting and advising sector for the development  of projects about the rules and regulations of the Kyoto Protocol Clean Development Mechanism. With headquarters in many countries (China (Hong Kong), India, Belgium, France and Chile), CMC has worked in many places in the five continents, with more than CDM 90 projects located in more than 20 countries.  CMC´s Thinking Tank has a multinational and multidisciplinary team of engineers and financial analysts specialized in the Carbon Credit Market, and is spread between Hong Kong, Brussels, Paris, Calcutta and Santiago.  The working team has the same characteristics


• ERPA (Emission Reduction Purchase Agreement): A formal document, standardized by UNO EB, which gives permition for the execution of transactions of carbon credits purchase and sale between two parties involved in projects related to the Kyoto Protocol. The norms for those agreements are previously established and outlined by the International Emission Trading Association (IETA).  This agreement involves two or more CDM project participants.


• CXX (Chicago Climate Exchange): A voluntary market, as the projects it deals do not conform with the Kyoto Protocol´s rules and requirements. Therefore, it is less demanding as to the requirements for accepting GEE emission reduction projects.  That is the market where Verified Emission Reductions are negotiated.


• CTC (CDM Code Terms):  The group of norms that regulate Clean Development Mechanism projects.

UNFCCC (United Nations Framework Convention on Climate Change): Consists of a panel of scientists who study, analyze, observe, discuss and make relations between the entropic actions and the consequential climate alterations.