Information and regulations

Glossary

A  B  C  D  E  F  G  H  I  J  K  L  M  N  Ñ  O  P  Q  R  S  T  U  V  W  X  Y  Z

 

 

A

Account holder: Individual or legal entity holding an account in their name in the registry system.

Account information: All the necessary information to open an account or register a verifier, including all the data of the corresponding representatives.

Authorisation to emit greenhouse gases: The authorisation required for installations that carry out activities listed in annex I of Law 1/2005 of 9 March, which give rise to the emissions specified therein.

Authorised representative - AR: Person authorised to represent an account holder before the Registry pursuant to article 23 of Commission Regulation (EU) nº 389/2013 of 2 May 2013.

Aviation emissions allowances: Emissions allowances created pursuant to Article 3 (c), section 2, of Directive 2003/87/EC, including emissions allowances, created to this end, as part of emissions trading systems associated with the EU ETS pursuant to Article 25 of said Directive.

 

B

Business day: Any day of the year falling from Monday to Friday.

 

C

Cancellation: Definitive elimination of a Kyoto (KP) unit by its operator, without accounting for it for the purposes of verified emissions. This is carried out by means of a transfer to an account of the State specific for cancellations.

Carry-over: Validation of allowances/credits generated during trading/commitment period for use in the following period.

CCP: As defined in Article 2 (1) of Regulation (EU) 648/2012 of the European Parliament and of the Council.

Central Administrator: Person appointed by the European Commission in accordance with article 20 of Directive 2003/87/EC to operate and maintain the Community Independent Transaction Log.

CERs (Certified Emission Reduction units): These are CERs that expire at the end of the commitment period after the period in which they were issued. Units issued by virtue of CDM projects. The Clean Development Mechanism (CDM) is detailed in article 12 of the Kyoto Protocol and is based on the investment of a developed country in a project for the reduction of emissions of carbon fixation in a developing country. In return for the investment, the developed country will receive the reduction credits associated to the emissions prevented or removed, which it will be able to use to reach its reduction/limitation commitments. Both countries, the investor and recipient, must be parties to the Kyoto Protocol.

Check, Four eye principe (double validation)(Article 20.4): Account holders may decide that the approval of a second authorised representative is not necessary to propose transfers for execution to accounts on the trusted account list set up pursuant to Article 23. The account holder may withdraw such decision. The decision and the withdrawal of the decision shall be communicated in a duly signed statement submitted to the national administrator.

Clean Development Mechanism (CDM): An investment project that fulfils the requirements established in article 12 of the Kyoto Protocol and the United Nations Framework Convention on Climate Change. 

Clean Development Mechanism Project: (CDM Project): Flexibility mechanism provided for in the Kyoto Protocol (article 12), which allows industrialised countries (countries appearing in the annex I of the Protocol) to pay for projects that reduce or prevent emissions in third world countries (those that do not appear in Annex I of the Protocol). The recipient country is a developing country, which obtains additional financing and technology for projects aimed at sustainable development and the reduction of its emissions. In exchange, the developed country will add a number of Certified Emission Reduction units (CERs) to its amount, which it will be able to use to fulfil its objectives.

Clean Development Mechanism Registry (CDM Registry): Registry established, managed and maintained by the Clean Development Mechanism management committee on behalf of the countries not included in annex I of the Kyoto Protocol, which accept CDM projects, and, pursuant to article 12 thereof and the decisions adopted pursuant to UNFCCC or the Kyoto Protocol. Its objective is to ensure the accounting of the CERs, RCEt and ICER carried out by these countries.

Commitment period reserve (CPR): Minimum amount of Kyoto units to be maintained in the national registries of each country listed in annex I of the Kyoto Protocol, the objective of which is to prevent the transfer of more KP units than those permitted in a manner that compromises the commitments to reduce emissions during the different periods.

Competent authority: Authority or authorities appointed by a Member State in accordance with Article 18 of Directive 2003/87/EC.

Compliance: Process of surrendering allowances equivalent to the allowances verified during the previous year.

Compliance status: Compliance status figure for each installation and corresponding year. This figure will indicate whether the installation has surrendered an amount of allowances equivalent to the data for the verified emissions detailed in its Registry account. In the case that this figure is negative, the national registry shall block any transfer of unit allowances from the holding account of the corresponding account holder, until the figure for the compliance status is positive or zero.

 

D

Deletion: Definitive elimination of an emission allowance unit by its owner, without accounting for it for the purposes of verified emissions. This is carried out by means of a transfer to a specific account of the European Union for said deletion. The deleted allowances will not be accounted for, nor shall they be used for surrenders.

Directive 2003/87/EC: Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003, establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC.

 

E

Emission: The release of greenhouse gases into the atmosphere from sources located at an installation.

Emission allowance: It is the right to emit an equivalent tonne of carbon dioxide during a specified period. These were created within the emissions trading system established in the European Union through Directive 2003/87/EC.

European Union transaction log (EUTL):  Standardised electronic database pursuant to article 6 of Regulation (EC) nº 389/2013 of 2 May with the aim of recording all the transactions performed within the scope of application of this regulation, as well as the information on the credits and the transfers of Kyoto units (such as CERs and ERUs).

Execution: Completion of a proposed execution process, as a result of which, the process is completed, provided that all applicable conditions are met, or it is aborted.

 

F

Flexibility Mechanisms: Mechanisms provided for in the Kyoto Protocol aimed at enabling developed countries to fulfil their obligations to limit or reduce emissions. There are three types of flexibility mechanisms:

  1. Emissions trading between countries.
  2. 2. Joined Implementation (JI) projects.
  3. 3. Clean Development Mechanism (CDM) projects.

Free allocation of emission allowances: Number of allowances corresponding to the owner of an installation with a permit to emit greenhouse gases, in accordance with the transitional rules of the Union for the harmonisation of the free allocation of emission allowances established by Commission Decision 2011/278/EU of 27 April 2011.

 

G

General emissions allowances: All other emissions rights created pursuant to Directive 2003/87/EC, including the emissions allowances as part of the emissions trading systems associated with EU ETS pursuant to Article 25 of said Directive.

Group: A parent company and all its subsidiary undertakings as defined in Article 2 (11) of Directive 2013/34/EU

 

I

Installation: Any fixed technical unit where one or more of the activities listed in annex I of Law 1/2005 are carried out, as well as any other activities directly related to those that have a relationship of a technical nature to those activities carried out in said place and which may have repercussions on the emissions and contamination.

Installation operator: Any individual or legal entity that operates or controls the installation, either as the owner, or under any other legal title, provided that this grant sufficient powers over the technical and economic operation of the installation.

 

J

Joint Implication Project (JI): Flexibility mechanism provided for in the Kyoto Protocol article 6), which allows industrialised countries (countries appearing in the annex I of the Protocol) to fulfil part of its obligations to reduce greenhouse gas emissions by paying for projects that reduce emissions in other industrialised countries (annex I of the Protocol). Both the investing country and the recipient country of the investment in a JI project are countries committed to reducing emissions. In exchange for this investment, the investing country would receive emission reduction units (ERUs), which it can use to fulfil its objectives.

 

K

Kyoto Protocol: Protocol that implements and provides specific content to the generic instructions of the United Nations Framework Convention on Climate Change, adopted in 1992 and which entered into force in 1994. The Kyoto Protocol, approved in 1997, establishes objectives to reduce net greenhouse gas emissions for the main developed countries and those with economies in transition.

 

M

Money laundering: As defined in Article 1.3 of Directive (EU) 2015/849.

 

N

National Administrator : Entity appointed pursuant to Article 7 to manage a series of user accounts in the Registry system, on behalf of the Member State, under the jurisdiction of the Member State.

New entrant: Any installation that carries out one or more of the activities indicated in annex I, for which it is granted a greenhouse gas emissions permit for the first time after 30 June 2011, or any installation that carries an activity included in the community system pursuant to section 1 or 2 of article 24 for the first time, or any installation that carries out one or more of the activities indicated in annex I or an activity included in the community system pursuant to section 1 or 2 of article 24, which has been the object of a significant expansion after 30 June 2011, and only with regards to what said expansion refers.

New entrants reserve: The emissions allowances reserve for new installations and expansions of those existing for the period 2013 to 2020 is common for all the installations of the Union. The rules allocating emissions allowances from the reserve, also common for all installations, are detailed in Commission Decision 2011/278/EU of 27 April 2011. At a national level, articles 18 and 19 of Law 1/2005 of 9 March, and Royal Decree 1722/2012 are of application.

Non-Kyoto units: EUAs and EUAAs.

 

P

Parent company: As defined in Article 2 (9) of Directive 2013/34/EU of the European Parliament and of the Council.

Party: A country included on the list in annex I of the United Nations Framework Convention on Climate Change that has ratified the Kyoto Protocol, as specified in section 7 of article 1 of the aforementioned Protocol.

Period: 2005-2007: Period comprising 1 January 2005 to 31 December 2007, as indicated in Article 11 (1) of Directive 2003/87/EC. This is usually referred to as CP0 (Commitment Period 0).

Period 2008-2012: Period comprising 1 January 2008 to 31 December 2012, as indicated in Article 11 (2) of Directive 2003/87/EC. This is usually referred to as CP1 (1st Commitment Period).

Period 2013-2020: Period comprising 1 January 2013 to 31 December 2020, as indicated in Article 13 of Directive 2003/87/EC. This is usually referred to as CP2 (2nd Commitment Period).

Period 2021-2030: Period comprising 1 January 2021 to 31 December 2030, as indicated in Article 89 of Delegated Regulation (EU) 2019/1122. This is usually referred to as CP3 (3rd Commitment Period).

Person discharging managerial responsibilities: as defined in Article 3 (1) (25) of Regulation (EU) 596/2014.

Procesx: Automated technical means for performing an action in relation to an account or unit in the Registry system.

 

R

Registry (Registry System): Computer platform established for the accounting of the transactions that involve AAUs, RMUs, ERUs, CERs, RCEt, ICER, as well as the emission allowances under European legislation. This generic term includes the national registries, the Clean Development Mechanism Registry, and the Transaction Logs. In the European Union, the registry is established, operated and maintained pursuant to article 8 of Directive 2003/87/EC.

Registry Account: Account in which the ownership, balance and transactions of the emission allowances and/or units defined under the Kyoto Protocol in the possession of their owner are recorded.

Registry Rules: European Community regulations, which establish a standardised and guaranteed system for national registries pursuant to article 19.3 of Directive 2003/87/EC.

 

S

Serious crime: As defined in Article 3.4 of Directive (EU) 2015/849.

Subsidiary undertaking: As defined in Article 2 (10) of Directive 2013/34/EU.

Surrender: Accounting of an emissions allowance by the owner of an inslattaion or aircraft operator for the purposes of the verified emissions of its installation of aircraft.

 

T

tCO2e - Tonnes of carbon dioxide equivalent: One metric tonne of carbon dioxide (CO2) or an amount of any other greenhouse gas contemplated in annex II of Law 1/2005 of 9 March with an equivalent global warming potential.

Terrorist financing: As defined in Article 1 (5) of Directive (EU) 2015/849.

Transaction: Process carried out in the Union Registry, which includes the transfer of emission allowances, Kyoto units (ERUs, CERs, tCER, lCER, RMU), units from the annual allocation of emissions or a part of the authorised credits from one account to another.

Transfer: This is the operation of the Registry that reflects the movement of any type of unit between different accounts.

Transfer types: Within the Union Registry there are two Registries:

  • ETS: Accounts managed by the EU ETS Directive.
  • KP: Kyoto Protocol Accounts.
    Depending on which registry manages the transfers, these will be:
    • ES-ES: Internal transfer
    • EU-EU: Internal transfer
    • EU-ES/ES-EU: External transfer
 

U

User: Operators and/or holders that have an account in the National Registry of emissions allowances.

 

V

Verifier: As defined in Article 3 (3) of Commission Implementing Regulation (EU) 2018/2067.

 

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