Global Warming Glossary
Terms Used in Global Climate Change
Allowances — In the context of a cap-and-trade system, an emissions allowance is a permit to produce a specific quantity of emissions. Annex I Countries — Parties to the United Nations Framework Convention on Climate Change (UNFCCC) that are industrialized countries and were members of the Organization for Economic Cooperation and Development (OECD) in 1992 plus countries characterized as economies in transition. Cap and Trade —An emissions pricing system in which the government applies an aggregate cap or quota to limit total emissions from regulated sources, which are required to hold allowances to cover their emissions. Allowances are allocated by…
