The term AAU refers to the Assigned Amount Unites which sets the limit of ______.

A. Carbon emissions

B. Green House Gases Emissions

C. Carbon credit sales

D. Savings in the form of carbon footprint

The correct answer is Green House Gases Emissions.

Key Points

• Countries with commitments under the Kyoto Protocol to limit or reduce greenhouse gas emissions must meet their targets primarily through national measures.
• As an additional means of meeting these targets, the Kyoto Protocol introduced three market-based mechanisms, thereby creating what is now known as the carbon market.

• The Kyoto mechanisms:

  • Stimulate sustainable development through technology transfer and investment.
  • Help countries with Kyoto commitments to meet their targets by reducing emissions or removing carbon from the atmosphere in other countries in a cost-effective way.
  • Encourage the private sector and developing countries to contribute to emission reduction efforts.
  • CDM and JI are the two project-based mechanisms that feed the carbon market.
  • CDM and JI are the two project-based mechanisms that feed the carbon market. The CDM involves investment in emission reduction or removal enhancement projects in developing countries that contribute to their sustainable development, while JI enables developed countries to carry out emission reduction or removal enhancement projects in other developed countries.