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Designated National Authority (DNA)
The DNA is the national focal point for CDM issues. It oversees the integration of projects into the national emission reduction ans sustainable development strategy and ist the body that needs to approve CDM projects iin the first hand. The DNA is usually a unit in a government ministry.

Designated Operational Entity
DOEs are approved by and accountable to the Executive Board. They are responsible for validating CDM projects and also the verification and certification processes. The same DOE cannot perform both functions for one project unless it is a small-scale project. Usually, DOEs are private corporations with an experience in project controlling, monitoring and verification.

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Emissions Reduction Unit (ERU)
An ERU is a carbon credit unit generated by a Joint Implementation project and is equal to one tonne of CO2 equivalent.

Emissions Trading
AAUs can be traded between Parties who have a reduction commitment under the Kyoto Protocol via a cap-and-trade system to meet their targets. Unlike CDM and JI, emissions trading is not project based.

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Financial additionality
CDM projects have to be financially additional, which means that the CDM projects that Annex I countries support should not be financed by official development aid, but that additional funding is to be made available for such projects.

Fungibility
A carbon credit (AAU, CER, ERU and RMU) generated from Kyoto Mechanisms is exchangeable, or ‘fungible'. However, not all credits can be transferred to future commitment periods after the current 2008-2012 period, some are not bankable. Inherently, this means different types of credits carry different values over a longer-term, especially if credits are bought to hedge potential future obligations or gaps between the reduction obligation and the emission level. CERs and ERUs are bankable both under the Kyoto regime and under the EU ETS. Especially the latter means that the value of CERs/ERUs is likely to increase towards the end of the first EU ETS commitment period in 2007.

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GHG
Greenhouse Gas

Grandfathering
Grandfathering is a method of allocating emissions, where permits are allocated, usually free of charge, to emitters and firms on the basis of their emissions record and past efforts to reduce emissions.

GS PDD Gold Standard Project Design Document
The Gold Standard Project Design Document is based on the standard PDD issued by the Executive Board, but has a number of elements integrated in order to ensure that the project is sustainable: a Project Type Screen; an Additionality and Baseline Screen; a Sustainable Development Screen and stricter requirements for public consultation. The GS PDD is kept updated to reflect any changes made to the underlying standard PDD by the CDM EB. The GS PDD is designed so that the document can be submitted to the CDM EB in compliant format without additional formatting.

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Host Country
The host country is the country in which the emission reduction project is proposed to take place. It needs to approve the projects implemented on its territory. Approval is granted more easily if a project can prove in a transparent manner that the project contributes to sustainable development in the host country. The Gold Standard's Sustainable Development Screen is a tool that is based on such sustainable development assessments.