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Glossary

The terms defined in the Article 6 Framework, in the Framework’s own words.

These are the terms defined in Malawi’s Article 6 Framework for International Carbon Market Engagement, at Annex VII. The wording is the framework’s own, reproduced so the vocabulary used across this site can be checked against its source.

01 Annex VII

Terms used in the Framework.

Seventy-four terms, in alphabetical order, as defined by the framework itself.

A B C E F G H I L M N O P S T U V

A

Account: Any digital record within Malawi’s Carbon Registry System (MCRS) that will be used to record the issue, holding, transfer, acquisition, and cancellation of MOs.
Acquiring participating Party: Paris Agreement Party or a non-state party within the Paris Agreement Party that intends to voluntarily engage in Article 6.2 cooperative approaches as a transferring or acquiring country.
Additionality: Prove that activities of the Mitigation Activity result in emission reductions or removals that are above the level what would have happened in the absence of the project (under “business as usual” scenario).
Approval: Parties may establish an Art. 6.2 activity approval process, also called pre-authorization or ex-ante authorization in which an internal review of design documentation or even an independent validation of the design by an independent entity is conducted before approval.
Article 6: Article 6 of the Paris Agreement recognizes that some Parties choose to pursue voluntary cooperation in the implementation of their nationally determined contributions (NDC) to allow for higher ambition in their mitigation and adaptation actions and to promote sustainable development and environmental integrity.
Article 6.2 Administrative Fee: A one-time payment that will take into consideration the estimated effort in person-days per task by Malawi’s Environmental Affairs Department personnel and other Article 6.2 dedicated entities. The fee shall be paid by all MAPs every time a MADD is uploaded into the MAP’s Registry account in Malawi’s Carbon Registry System (MCRS).
Article 6.2 Guidance: Relevant decisions from the CMA in regard to cooperative approaches as referred to in Article 6.2 of the Paris Agreement.
Article 6.2 Initial Report(AIR): A report (referred to as AIR) is prepared for submission to the Paris Agreement before authorizing MOs by an Article 6.2 participating Party in compliance with Chapter IV.A paragraphs 18 and 19 of Decision 2/CMA.3.
Article 6.2 Letter of Authorization(A6.2LOA): Also referred to as A6.2LOA, a letter provided by the Environmental Affairs Department on request by the MAP, once the validation report has received a positive review by the Environmental Affairs Department and the MAP comply with the needed requirements. Each A6.2LOA is specific to a particular Mitigation Activity and specifies the amount of MOs that are authorized for transfer towards the achievement of NDC of the acquiring participating Party and/or authorized for use for Other International Mitigation Purposes (OIMPs) under Article 6.2.
Article 6.4 Letter of Authorization(A6.4LOA): Also referred to as A6.4LOA, a letter provided by the Environmental Affairs Department once the validation report has received a positive review by the accredited UNFCCC DOE. Each A6.4LOA is specific to a particular Mitigation Activity and specifies the amount of MOs that are authorized for transfer towards the achievement of NDC of the acquiring participating Party and/or authorized for use for Other International Mitigation Purposes (OIMPs) under Article 6.2. The A6.4LOA may also indicate a potential renewal of the Mitigation Activity’s crediting period.
Authorization: In accordance with Article 6, paragraph 3 of the Paris Agreement, the use of ITMOs to achieve nationally determined contributions under this Agreement shall be voluntary and authorized by participating Parties.
Authorizing Entity: The Ministry of Natural Resources and Climate Change (MNRCC) was designated under this framework as the authority to recognize the eligibility of mitigation activities, authorize MOs, and ensure compliance with international standards and shall host the Environmental Affairs Department. The functions of the MNRCC are described in Table 1 of the Framework.

B

Baseline: See the definitions of “baseline scenario” and “baseline emissions”.; See also — Baseline scenario, Baseline emissions
Baseline and monitoring methodology: A methodology for a Mitigation Activity comprising two related parts: a baseline methodology and a monitoring methodology. See also the definitions of “baseline methodology” and “monitoring methodology”.; See also — Baseline methodology, Monitoring methodology
Baseline emissions: The GHG emissions that would occur in the baseline scenario.
Baseline methodology: A methodology applied to establish a baseline scenario for a Mitigation Activity, which constitutes one part of a baseline and monitoring methodology.
Baseline net GHG removals by sinks: The sum of the changes in carbon stocks in the carbon pools within the project boundary that would have occurred in the absence of Mitigation Activity.
Baseline scenario: The scenario for the Mitigation Activity that reasonably represents the anthropogenic emissions by sources or the sum of the changes in carbon stocks in the carbon pools within the project boundary of GHGs that would occur in its absence.
Biennial Transparency Report: Transparency-oriented report that is to be produced counties every two years and submitted to the UNFCCC in compliance with Decision 18/CMA.1.
Buffer Fee: Non-monetary fee to all Mitigation Activities that have been authorized and verified by an independent VVB, consisting of MOs retention from an implemented Mitigation Activity, into Malawi’s National Buffer Account.

C

CMA: Conference of the Parties serving as the meeting of the Parties to the Paris Agreement.
Cooperative Approach: Cooperative relationship and set of commercial transactions between Malawi and an acquiring participating Party involving the transfer of Internationally Transferred MOs through a bilateral agreement under Article 6.2. They are intended to provide financial incentives designed to encourage investments into an emission reduction activity, de-risk the financing of mitigation activities and enable projects to get up and running. Such an approach will allow both countries to make progress on their respective international commitments to the Paris Agreement, accelerating its implementation.
Corresponding Adjustment(CA): Also referred to as CA, it means that a host Party transfers an MO to be counted toward the acquiring participating Party’s objectives, the credits generated from the Mitigation Activity shall be deducted by the host Party to avoid double-counting.
Crediting period: The period in which verified and certified GHG emission reductions or net anthropogenic GHG removals by sinks attributable to a mitigation activity, as applicable, can result in the issuance of MOs, as applicable, from that mitigation activity. The time period that applies to a crediting period for a mitigation activity, and whether the crediting period is renewable or fixed, is determined in the cooperative approach.

E

Eligible NDC sectors and activities for development under Article 6.2 and Article 6.4: These activities or technologies are part of the conditional mitigation programs of action in Malawi’s updated NDCs. These activities demonstrate technical and financial additionality.
Emission Balance: It is the overall difference between the estimated greenhouse gas emissions produced and the emissions reduction achieved or taken out of the atmosphere.
Entities: Local or international companies or businesses that provide services to participants engaged in a Mitigation activity, encompassing tasks such as sourcing activities, conducting feasibility assessment, activity development, validation, and verification. These services also extend to providing financial support and monitoring services.
Environmental Integrity: Ensuring that engagement in Article 6.2 cooperative approach involving the authorization and transfer MOs to an acquiring participating Party leads to a decrease in global GHG emissions as compared to business-as-usual scenarios but does not result in additional increases in the global emission reduction targets.

F

First Transfer: As stated under section I, paragraph 2 (a-b) of the Annex to Decision 2/CMA.3, a first transfer is: (a) for a mitigation outcome authorized by a participating Party for use towards the achievement of an NDC, or for the first international transfer of the mitigation outcome; and (b) for a mitigation outcome authorized by a participating Party for use for other international mitigation purposes, either the authorization, the issuance or the use or cancellation of the mitigation outcome, as specified by the participating Party.

G

Greenhouse Gas(GHG): Also referred as GHG, any carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulphur hexafluoride and any other halocarbons subject to the 2019 Refinement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories as published by and updated from time to time by the IPCC. When the update leads to changes in the Global Warming Potential (GWP) and is adopted by the UNFCCC, new activity developers will use the revised published GWP.

H

Host Party/Country or Selling/Transferring Country: Country where the Mitigation Activity is implemented, and the MOs generated from it are authorized for transfer to an acquiring participating Party.

I

International Crediting Standard: An internationally recognized set of certification rules and requirements to enable validation and verification of mitigation outcomes generated by an activity, including CDM, Gold Standard, Verra, ISO-14064, or other standards that the parties agree on, is an applicable standard.
Internationally Transferred Mitigation Outcomes: A real, additional, and verified reduction in GHG emissions or removal of GHGs from the atmosphere, measured in tCO2eq and representing one tCO2eq per methodologies approved under the Paris Agreement Rules and generated by a specific Mitigation Activity from 2021 onwards.
International registry: The registry that shall be implemented by the UNFCCC Secretariat for Parties that do not have access to a national registry.
Issuance: The issuance by Malawi’s Environmental Affairs Department of a specified quantity of mitigation outcomes in the form of a unit or other uniquely identifiable unit of measure into the in the MAP’s account on Malawi’s Carbon Registry System (MCRS).

L

Leakage: The net change of anthropogenic emissions by sources of GHGs which occurs outside the project boundary, and which is measurable and attributable to the Mitigation Activity, as applicable; or the increase in GHG emissions by sources or decrease in carbon stock in carbon pools which occurs outside the boundary of the Mitigation Activity, as applicable, which is measurable and attributable to it.
Letter of No Objection: Letter provided by the Environmental Affairs Department once the submitted documentation has been reviewed and the Mitigation Activity’s eligibility has been positively assessed. This letter shall not constitute an Authorization of the intended Mitigation Activity.

M

Malawi’s Carbon Registry System (MCRS): An online system that hosts mitigation activities is accepted and approved under this framework. It can facilitate listing and registering mitigation activities and VCM projects, provide records of all MOs activities, MOs issued and ITMO transfers, and provide public access to all Mitigation Activities’ information.
Methodology: Methodologies, tools, methodological guidelines or protocols used to quantify the mitigation outcomes generated by the mitigation activity approved under any international crediting standard listed by the Environmental Affairs Department.
Mitigation Activity: Projects or programs that are implemented to generate mitigation outcomes.
Mitigation Activity Design Document(MADD): Also referred to as MADD, it is a detailed documentation describing the mitigation activity in line with the international crediting standards under which the mitigation activity has been developed.
Mitigation Activity Identification Number(MA-ID): Also referred to as MA-ID, it is an exclusive number created and assigned to a Mitigation Activity in Malawi’s Carbon Registry System (MCRS) on the respective account of a MAP.
Mitigation Activity Participant: Any legal entity who is engaged in a Mitigation Activity that results in the reduction or avoidance of greenhouse gas emissions. This can include private companies, public entities and/or non-governmental organizations. This definition specifically excludes individuals who are not representing a legal entity.
Mitigation Activity Participant Identification Number(MAP-ID): Also referred to as MAP-ID, it is an exclusive serial number created and assigned to a MAP seeking to open and operate an account on Malawi’s Carbon Registry System (MCRS).
MO Issuance Fee: Fee applied to any MAPs seeking to request MO issuance from the Environmental Affairs Department through the submission of the MO Issuance Request form. The fee shall be paid based on total units of issued MOs.
Monitoring: Collecting and archiving all data necessary for determining the baseline, and for measuring anthropogenic emissions by sources of GHGs within the project boundary, and leakage, as applicable; or collecting and archiving all data necessary for estimating or measuring the net anthropogenic GHG removals by sinks.
Monitoring, reporting and verification (MRV): MRV Systems are intended to prove that the claimed benefit of emission avoidance or removal has occurred in order to issue an MO with monetary value.
Monitoring methodology: The methodology used for monitoring a Mitigation Activity which constitutes one part of a baseline and monitoring methodology.
Monitoring plan: The plan which sets out the methodology to be used by the MAP for the monitoring of, and by VVBs for verification of, the amount of GHG emission reductions or net anthropogenic GHG removals by sinks achieved by a Mitigation Activity, as applicable.
Monitoring report: A report prepared by a project participant which sets out the GHG emission reductions or net anthropogenic GHG removals by sinks of an implemented authorized Mitigation Activity for a particular monitoring period.

N

National Buffer Account(NBA): Also referred to as NBA, is a country-managed account within Malawi’s Carbon Registry System (MCRS) to retain MOs collected from charging the Buffer Fee at the point of transferring MOs to an acquiring participating Party.
Nationally Determined Contribution: The Nationally Determined Contribution of a Paris Agreement Party, as prepared, communicated and maintained from time to time per Article 4.2 of the Paris Agreement and Decision 4/CMA.1.
NDC Period: The year within which a specific NDC is implemented. In the case of Malawi, the NDC implementation period spans from 1 January 2020 to 31st December 2040.
Negative list: The list of unconditional NDC mitigation measures that are not eligible to generate MOs for authorization and transfer.
Net anthropogenic GHG removals by sinks: Actual net GHG removals by sinks minus the baseline net GHG removals by sinks minus leakage.
Non-Greenhouse Gas(non-GHG): Also referred as non-GHG, they are mitigation contributions determined by participating Parties that are consistent with the NDCs of the participating Parties and are not directly related to gas emissions to the atmosphere (e.g., energy efficiency, renewable energy, forest cover targets or policy actions), either as standalone contributions or in addition to GHG. Each participating Party with an NDC measured in non-GHG metrics determined by the participating Parties engaging in a cooperative approach involving MOs traded in the same non-GHG metric shall apply corresponding adjustments in a buffer registry by applying an addition to and subtraction from the annual level of the relevant non-GHG indicator used by the Party to track progress towards the implementation and achievement of its NDC.

O

Other International Mitigation Purposes(OIMP): Also referred to as OIMP, they are mitigation outcomes authorized by a participating Party for use for international mitigation purposes other than achievement of an NDC or authorized for other purposes as determined by the first transferring participating Party; as stated under section I, paragraph 1 (f) of the Annex to Decision 2/CMA.3.
Overall Mitigation in Global Emission(OMGE): Also referred to as OMGE, it is the reductions in global GHG emissions through carbon markets when the buying or selling Party does not use the MOs to achieve its own NDC or for other international mitigation goals.

P

Paris Agreement: Legally binding international treaty on climate change, adopted by the parties to the UNFCCC at its 21st meeting in Paris and reflected in Decision 1/CP.21.
Paris Agreement Party: A country that is a signatory to the Paris Agreement and has deposited its instrument of ratification, acceptance, approval, or accession to the Secretary-General of the United Nations in the capacity of the depository of the Paris Agreement.
Permanence: Represents how long carbon is stored or tied up for and what its risk of reversal is.
Positive Examination: Determination by Malawi that the MOs generated have been verified and deemed compliant with the sustainable development requirements for each mitigation activity.

S

Secretariat: The secretariat to the UNFCCC is appointed at the secretariat to the CMA according to Article 17 of the Paris Agreement.
Share of Proceeds(SOP): Also referred to as SOP, is the contribution to adaptation and its modalities agreed to by Malawi and the acquiring participating Party.
Sink: Any process, activity, or mechanism that removes a GHG, an aerosol, or a GHG precursor from the atmosphere.

T

tCO2eq: An amount of carbon dioxide emission measured in metric tons would cause the same integrated radiative forcing or temperature change, over a given time horizon, as an emitted amount of a GHG or a mixture of GHGs.

U

UNFCCC: United Nations Framework Convention on Climate Change is the parent treaty of the Paris Agreement.
Updated Initial Report(UIR): Also referred to as UIR, an update of the AIR occasioned by additional authorization of MOs under the cooperative approach in compliance with 18/CMA.1 Chapter IV.A paragraph 19. The UIR will be included in the centralized accounting and reporting platform referred to in chapter VI.C (Centralized accounting and reporting platform) by the UNFCCC Secretariat.

V

Validation: Validation per the Paris Agreement Rules and/or the rules of a Crediting Standard by a Validator that a Mitigation Activity meets the criteria set by the Crediting Standard and includes the process of independent evaluation of a Mitigation Activity Design Document per those rules. Validation has a corresponding meaning.
Validation Report: A written report prepared and issued by the Validator in respect of the Validation conducted, per the requirements of the Paris Agreement Rules and/or the rules of an International Crediting Standard.
Validator: An organization or body designated by mutual agreement of the Parties and accredited or recognized under the Paris Agreement Rules and/or the rules of a Crediting Standard to carry out Validation of the Mitigation Activities according to those rules.
Verification: The periodic review and ex-post determination of a Verifier following the Paris Agreement Rules and/or the rules of an International Crediting Standard of the amount of Mitigation Outcome achieved by the Mitigation Activity in each monitoring period.
Verification Report: A written report prepared and issued by the Verifier in respect of the Verification conducted, per the requirements of the Paris Agreement Rules and/or the rules of an International Crediting Standard.
Verifier: An organization or body designated by mutual agreement of the Parties and accredited or recognized under the Paris Agreement Rules and/or the rules of a Crediting Standard and Methodology to carry out Verification of Mitigation Activities.

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