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Glossary of Terms: E

Economies in transition (EITs): As defined by the Annex I Expert Group on the UNFCCC, EITs are countries which are undergoing the process of transition to a Market Economy:
Belarus, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Russian, Federation, Slovak Republic, Slovenia, Ukraine.

Emission Allowance: Emission allowances are the total emissions allowed to be released by an emission source (often a net emitting firm) within a given period of time. Emission Allowance are created by a regulating entity and distributed to emitters by grant, auction, or a combination of the two.

Emission Cap (Cap): A regulatory device that sets a ceiling on emissions that can be released into the atmosphere within a designated timeframe. Within the Kyoto Protocol Annex B countries agreed to caps on emissions within the 2008-2012 timeframe in reference to 1990 emissions levels. Caps are effectively the same as 'Allowances' however caps more often refer to national emission limitations and allowances to individual emitters.

Emission Inventory: Emission Inventory is an archive of historical emissions. An emission inventory can begin once systems boundaries are defined.

Emission Leakage: Emission Leakage or 'Leakage' refers to emission reductions in one location being offset by an increase in emissions in another location. For example, emissions could be reduced in an Annex I nation by moving an emissions intensive industry to a non-Annex I nation. Thus lowering emissions in the Annex I nation and increasing emissions in the non-Annex I nation.

Emission Offset: The use of an ERC to offset, or mitigate, an emission increase governed by New Source Review Rules.

Emission Reduction Credit: ERCs are reductions in emissions that have been recognized by the relevant local or state government air agency as being real, permanent, surplus, and enforceable. ERCs are usually measured as a weight over time (e.g., pounds per day or tons per year). Such rate-based ERCs can be used to satisfy emission offset requirements of new major sources and new major modifications of existing major sources. Mass-based ERCs, more akin to DERs, are issued with the weight and without reference to time.

Emissions Reduction Market System: The ERMS is a cap and trade regulatory program for stationary sources emitting volatile organic material in the ozone non-attainment area located in Northeastern Illinois. For more information on the ERMS program, go to the Illinois ERMS Program Summary.

Emission Reduction Unit (ERU): A specified amount of greenhouse gas emissions reductions achieved through a Joint Implementation project under the Kyoto Protocol,

Emission Targets: Emission limits imposed on emitters by a regulatory body.

Emission Taxes: Surcharge or levy placed on emissions sources, usually on a per ton basis. Emission taxes are designed to provide incentives to firms and households to reduce their emissions as a means to control pollution (carbon tax is a subset of an emissions tax).

Emissions Trading: a regulatory program allowing firms the flexibility to select cost-effective solutions to achieve established environmental goals, by: (a) reducing emissions from a discrete emissions unit; (b) reducing emissions from another place within the facility; or (c) securing emission reductions from another facility. Emissions trading encourages compliance and financial managers to pursue cost-effective emission reduction strategies and incentivizes emitting entrepreneurs to develop the means by which emissions can inexpensively be reduced.

EU Bubble: Under the Kyoto Protocol, the individual countries that comprise the European Union have aggregated their emissions and accepted an aggregated emissions reduction target. This has been reallocated back to the individual countries to allow differentiation of national reduction programs. The arrangement allows the target to be shared among all countries within the bubble.