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Glossary of Terms: B

Banking: An administrative mechanism that facilitates the recognition of emission reduction credits or emission allowances. Banking also allows for the use of ERCs or EAs in a time that is later than when they were created. Within the Kyoto Protocol, emission permits not used in one commitment period can be saved or 'banked' for future use in a subsequent compliance period.

Baseline Period: In relation to the quantification of ERCs, the Baseline Period is a time period prior to the reduction of emissions.

Baseline Scenario: the forecast emissions of a company, business unit or project, using a business as usual scenario, i.e. expected emissions if the firm did not implement emission reduction activities. This forecast incorporates the economic, financial, technological, regulatory and political circumstances within which a firm operates

Bilateral Transaction (Trade): A trade that does not include an intermediary exchange and is made on a direct one-on-one basis.

Binding Targets: agreed or mandated emission limits on an entity that are to be met at a specific point of time or period

Biomass Fuels or Biofuels: A fuel produced from dry organic matter or combustible oils produced by plants.
These fuels are considered renewable as long as the vegetation producing them is maintained or replanted, such as firewood, alcohol fermented from sugar, and combustible oils extracted from soy beans. Their use in place of fossil fuels cuts greenhouse gas emissions because the plants that are the fuel sources capture carbon dioxide from the atmosphere.

Bio-diesel: Diesel equivalent, processed fuel derived from biological sources (such as vegetable oils), which can be used in unmodified diesel-engines

Bio-ethanol: Ethanol (C2H5OH), also known as ethyl alcohol, alcohol, or grain spirit derived from biological sources. A clear, colorless, flammable oxygenated hydrocarbon with a boiling point of 78.5 degrees Celsius in the anhydrous state. In transportation, ethanol is used as a vehicle fuel by itself (E100), blended with gasoline (E85), or as a gasoline octane enhancer and oxygenate (10 percent concentration).

Biomass Generation: production of electricity from biomass in a fuel gasification plant.

Bubble: A bubble is a regulatory concept whereby two or more emission sources are treated as if they were a single emission source. This creates flexibility to apply pollution control technologies to whichever source under the bubble has the most cost effective pollution control options, while ensuring the total amount of emissions under the bubble meets the environmental requirements for the entity. Bubbles are closed systems. Article 4 of the Kyoto Protocol allows a bubble to be formed between Annex B countries, for example the European Union nations.

Building Efficiency: energy efficiency for heating, cooling, and lighting and the use of energy-saving appliances and equipment.

GHG Reduction & Project Quantification: Projects offset power from fossil fuel sources through reduced consumption. Energy is reduced by the installation of efficient technologies, changes in operational procedures, and changes in management practices. Energy consumption is based on historical measurement and projections of business as usual future use and measurement of project-based improvements. Emissions factors are used to calculate the corresponding emission reductions.

Additionality: Energy efficiency improvements are generally considered to be above what is required by building codes and efficiency standards.

Verification: Electric production and consumption is metered and verified by independent third parties utilising electricity bills and meter readings.

Ancillary Benefits: Potential energy savings for building tenants and owners.

Bunker fuels: fuels consumed by international marine and air transport.

Business As Usual Scenario (BAU): a policy neutral reference case of future emissions, i.e. projections of future emission levels in the absence of changes in current policies, economics and technology.