1. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org What is Carbon Finance?

2. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org Carbon Finance Carbon Finance is money used to finance projects in countries hosting green house gas (GHG) emission reduction projects.

3. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org What is Carbon Credit?

4. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org Carbon Credit Projects that reduce green house gas (GHG) emissions or offset GHGs by the equivalent of one tonne of carbon dioxide (CO 2 ) earn a carbon credit, in a from of a certificate. This carbon credit can in turn be traded in the international market at their current market price to other businesses and individuals to offset the emissions they generate.

5. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org What is the Kyoto Protocol?

6. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org Kyoto Protocol An international agreement to the United Nations Framework Convention on Climate Change (UNFCCC) reached in 1997 in Kyoto, Japan. The Kyoto Protocol aims to reduce CO 2 emissions and the presence of GHGs. Countries that ratify the Kyoto Protocol are assigned maximum carbon emission levels and can participate in carbon credit trading. Emitting more than the assigned limit will cause the violating country to be penalized by lowering its emission limitation in the following period. The Kyoto Protocol separates countries into two groups. Annex I includes developed nations, while Non-Annex I refers to developing countries. Emission limitations are only placed on Annex I countries. Non-Annex I nations participate by investing in projects that lower emissions in their own countries. For these projects, they earn carbon credits. These credits can be traded or sold to Annex I countries, which allow them a higher level of maximum carbon emissions for that period.

7. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org What is the CDM?

8. The GKI Telephone: +260-1-238473/2 Website: www.theGKI.org CDM The Kyoto Protocol have put a framework in place to reduce industrialized countries GHG emissions, through the introduction of market-based mechanisms. The Clean Development Mechanism (CDM) gives emission-reduction projects in developing countries certified emission reduction (CER) credits, one CER is equivalent to one tonne of CO 2.CERs can be bought by industrialized countries to compensate for their emissions.