ETX Module: Glossary
B
| Biofuels | Biofuels are liquid or gaseous transport fuels such as biodiesel and bioethanol which are made from biomass. |
| Biofuels (conventional) | Biofuels are produced from food and feed crops. |
| Biofuels (advanced) | Biofuels produced from a positive list of feedstock (mostly wastes and residues) set out in Part A of Annex IX of Directive (EU) 2018/2001. |
C
| Cap and Trade | The EU ETS is a ‘cap and trade’ system. This means that it sets an overall limit (a ‘cap’) on the total volume of greenhouse gas (GHG) emissions that installations in the covered sectors can cumulatively emit. The reduction targets set for the EU ETS sectors by EU policymakers are achieved through the gradual lowering of this cap. |
| CAPRI | Common Agricultural Policy Regionalised Impact model: a global multi- country agricultural sector model, supporting decision making related to the Common Agricultural Policy and environmental policy. |
| Carbon leakage | Carbon leakage is the hypothetical situation that European companies competing at international level would shift their production and/or investments (and pollution) to countries with less stringent or no climate policies. Theoretically, this could even result in higher GHG emissions. |
| CBAM | Carbon border adjustment mechanism |
CCFD | Carbon contract for difference |
CCS | Carbon Capture and Storage: a set of technologies aimed at capturing, transporting, and storing CO2 emitted from power plants and industrial facilities. The goal of CCS is to prevent CO2 from reaching the atmosphere, by storing it in suitable underground geological formations. |
CCU | Carbon Capture and Utilisation: the process of capturing carbon dioxide (CO2) to be recycled for further usage. |
| CEF | Connecting Europe Facility: an EU funding instrument to promote growth, jobs and competitiveness through targeted infrastructure investment at European level. |
| CGE | Computable General Equilibrium: a family of economic models. |
| CHP | Combined Heat and Power: a combined heat and power unit is an installation in which energy released from fuel combustion is partly used for generating electrical energy and partly for supplying heat for various purposes. |
| CLEF | Carbon leakage exposure factor: a factor that determines how much free allocation a sector or sub-sector may obtain. It depends on whether the sector or sub-sector is deemed to be at risk of carbon leakage or not. |
| CLI | Carbon leakage indicator: a number that indicates to which extent a sector or subsector is deemed to be at risk of carbon leakage. It is calculated by multiplying the trade intensity with the emission intensity. |
| CO2-eq | Carbon dioxide-equivalent: a measure used to compare quantities of different greenhouse gases in a common unit on the basis of their global warming potential over a given time period. |
| COP | Conference of the Parties: decision-making body of the United Nations Framework Convention on Climate Change (see UNFCCC) |
CORSIA | Carbon Offsetting and Reduction Scheme for International Aviation |
| COVID-19 | Coronavirus disease: a global pandemic caused by a coronavirus unknown before the outbreak began in Wuhan, China, in December 2019. |
| CSCF | Cross-sectoral correction factor: a factor by which free allocation of emission allowances is reduced in a uniform manner across all industry sectors, if the demand for free allocation exceeds the total amount of available free allowances |
| CTP | 2030 Climate Target Plan |
D
| DG ECFIN | Directorate General Economic and Financial Affairs |
E
| EBITDA | Earnings Before Interest, Taxes, Depreciation, and Amortisation |
| EEA | European Economic Area |
| EED | Energy Efficiency Directive: Directive 2012/27/EU and amending Directive 2018/2002/EU |
| E-fuels | Liquid fuels produced on the basis of hydrogen obtained from electricity via electrolysis |
| EIB | European Investment Bank |
| EPBD | Energy Performance of Buildings Directive |
| ERDF | European Regional Development Fund |
| ESR | Effort Sharing Regulation: Regulation 2018/842/EU |
| ETD | Energy Taxation Directive: Directive 2003/96/EC |
| ETS | Emissions Trading System |
| EU, EU-27 | European Union with 27 Member States since 1 February 2020 |
| EU-28 | European Union with 28 Member States from 1 July 2013 to 31 January 2020 |
| EUA | European Union allowance: the tradable unit under the EU ETS, giving the holder the right to emit one tonne of CO2-eq |
| EUTL | European Union Transaction Log: central transaction log, run by the European Commission, which checks, records and authorises all transactions between accounts in the Union Registry (see also EU ETS, NIMs) |
F
| Free allocation | Under the Emissions Trading System, free emissions allowances are the mechanism to protect industry and aviation from the presumed but unproven risk of carbon leakage. |
G
| GAINS | Greenhouse gas and Air Pollution Information and Simulation model |
| GDP | Gross Domestic Product |
| GEM-E3 | General Equilibrium Model for Energy Economy Environment interactions: a computable general equilibrium model, version operated by E3Modelling, a company |
| GHG | Greenhouse gas |
| GLOBIOM | Global Biosphere Management Model: a model for land use of agriculture, bioenergy, and forestry. |
| GT | Gross Tonnage |
| GW | Gigawatt |
| GWh | Gigawatt hours |
I
| IA | Impact assessment |
| ICAO | International Civil Aviation Organisation |
| IEA | International Energy Agency |
| IF | Innovation fund |
| IMO | International Maritime Organization |
J
| JRC | Joint Research Centre of the European Commission |
| JRC-GEM-E3 | General Equilibrium Model for Energy Economy Environment interactions: a computable general equilibrium model, version operated by the JRC |
L
| LDC | Least developed countries |
| LRF | Linear Reduction Factor: a factor by which the overall emissions cap of the ETS is reduced yearly |
| LULUCF | Land Use, Land-Use Change, and Forestry |
M
| MACC | Marginal abatement cost curve |
| MMF | Multiannual Financial Framework |
| MRV | Monitoring, reporting and verification |
| MS | EU Member State(s) |
| MSR | Market stability reserve |
| MtCO2 | Million tonnes of CO2 |
| MW | Megawatt |
| MWh | Megawatt hours |
N
| NACE | Statistical classification of economic activities in the European Community (from the French nomenclature statistique des activités économiques dans la Communauté européenne) |
| NECP | National Energy And Climate Plan |
| NIMs | National implementation measures, submitted under Article 11 of the ETS Directive |
| NPV | Net Present Value |
O
| OPC | Open Public Consultation |
P
| PRIMES | Price-Induced Market Equilibrium System: an energy system model for the European Union. |
| PRIMES-TREMOVE | Model for the transport sector, integrated in the PRIMES model. |
R
| RED / RED II | Renewable Energy Directives 2009/28/EC and 2018/2001/EU (recast) |
| RES | Renewable Energy Sources |
S
| SIDS | Small island developing states |
| SME | Small and Medium-sized Enterprise |
| SMSS | Sustainable and Smart Mobility Strategy |
| SWD | Staff working document |
T
| TEN-E | Trans-European Networks for Energy |
| TNAC | Total number of allowances in circulation |
U
| UNFCCC | United Nations Framework Convention on Climate Change |
V
| VAT | Value Added Tax |
