Glossary
CCAClimate Change Agreement
Climate Change Agreements are coupled with the Climate
Change Levy (see below). Businesses are entitled to an 80% discount
on the Levy providing they sign-up to 10-year negotiated agreements
to reduce their emissions or improve their energy efficiency.
CCPClimate Change Programme
The UK Climate Change Programme was set up by the
then Department of the Environment, Transport and the Regions
(DETR) in 2000 with the reduction of UK CO2 emissions
by 20% below 1990 levels by 2010 as its main target. This is a
domestic target and goes beyond the UK's Kyoto obligations. A
review of the UK CCP is currently underway; terms of reference
were announced by the Department for Environment, Food and Rural
Affairs (Defra) in December 2004.
CDMClean Development Mechanism
Established by the Kyoto Protocol, CDM ties in with
Emissions Trading (see ETS below) and allows developed countries
or companies to invest in emissions reduction projects in developing
countries. As there are no allowances to be transferred from the
latter to the former (see ETS and JI), an equivalent amount is
"generated" and credited to the investor after independent
certification. The emissions reductions achieved by the project
can then be used by the investor to meet their targets.
CCLClimate Change Levy
This is a tax on the use of energy by businesses.
The revenue generated by the levy is recycled back to business
through reduced National Insurance Contributions. It also goes
to funding The Carbon Trust, who advises business on energy saving
issues. Renewable energy and combined heat and power are exempt
from the Levy.
EECEnergy Efficiency Commitment
The EEC, along with the Building Regulations, is
one of the principal policy mechanisms for improving the energy
efficiency of existing homes. The aim is to help electricity and
gas consumers in the household sector to use energy more efficiently
and in turn reduce their fuel costs. Under the current EEC, electricity
and gas suppliers in Great Britain are required to meet targets
for the promotion of improvements in energy efficiency in households.
These targets are non-prescriptive and can be achieved by carrying
out a combination of approved measures, such as installing insulation
or providing low-energy light bulbs.
ETSEmissions Trading Scheme
Emissions trading is a system whereby countries or
companies are set a target for emissions of greenhouse gases.
Should that country or company emit more than their target, they
have to purchase the difference from another participant which
has emitted less than their target. Participants are allocated
"allowances" of emissions proportionate to their target.
These allowances can then be traded.
The UK emissions trading scheme began in March 2002,
and was the first economy-wide greenhouse gas emissions trading
scheme in the world. Over thirty organisation adopted voluntary
reduction targets for the duration of the scheme (2002-06). Those
companies with CCAs may also use the scheme to buyor sellallowances
in order to meet their targets. An EU-wide ETS was established
by Directive in October 2003 and formally began on 1 January 2005.
Effectively a "cap and trade" scheme, the EU ETS currently
only applies to industrial sectors and only CO2, although
other greenhouse gases may be introduced in the second phase (2008-2012).
Member States allocate "allowances" of CO2
to particular company plantssee NAP.
IPCCIntergovernmental Panel on Climate
Change
The IPCC is a UN body which assesses available advice
on climate change and advises other UN bodies which address the
problems posed by climate change. Thus far the IPCC has produced
three major assessments of climate change (in 1990, 1995 and 2001),
covering the science, impacts and response measures. The IPCC's
reports are agreed by scientists from around the world and are
regarded as the authoritative text on climate change.
JIJoint Implementation
This also ties in with Emissions Trading (ETS) and
allows for investment in emission-reducing projects (e.g. the
establishment of a renewable energy plant) in a developed country
by a government or company in another developed country. The emission
reductions achieved by the project can then be used by the investor
to meet their targets.
NAPNational Allocation Plan
The NAP plays an integral part in the EU ETS, each
Member State issuing a NAP stating how many allowances are issued,
and to which installations. The UK was the first Member State
to publish a draft NAP in January 2004, however failed to meet
the 31 March deadline for submission of the final Plan to the
Commission. The UK's Plan was finally approved in July 2004, covering
installations responsible for approximately 46% of all UK CO2
emissions.
RORenewables Obligation
This was introduced in 2000 and defines the amount
of electricity energy suppliers must provide from renewable sources
of energy. Originally set a target of 10.4% by 2010/11, the Government
announced in December 2003 that the RO would be extended, with
a target of 15% of electricity coming from renewables by 2015.
ROCsRenewables Obligation Certificates
These tie in with the RO (see above). Compliance
with the RO is demonstrated by presenting ROCs to Ofgem (the Gas
and Electricity Markets Authority). ROCs were issued to accredited
generators for eligible renewable electricity generated within
the UK (including its territorial waters and Continental Shelf),
and supplied to customers in Great Britain. They can be traded
to allow electricity suppliers to meet their targets at the lowest
cost.
UKCIPUK Climate Impacts Programme
This was set up by Government in 1997 to co-ordinate
a stakeholder-led assessment of the impacts of climate change
at a regional and national level and to help organisations prepare
for the impacts. In 2002 the Programmes contract was renewed for
three years.
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