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IEA - Glossary

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International Energy Agency

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Glossary

Acronyms & Abbreviations

Glossary of terms

Units of Measure

The following definitions reflect those used by the International Energy Agency (IEA); definitions used by other
organisations and publications may vary.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Advanced vehicles
covers electric (which are battery powered), plug-in hybrid (which uses two sources of power most commonly

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gasoline and electric) and fuel cell models (which convert hydrogen into electricity).

Annex B countries
countries with quantitative targets under the Kyoto Protocol.

Annex I countries
developed countries and countries in transition that have committed under the UNFCCC to undertake emissions
reductions activities.

anthropogenic
arising from human activity; for example, anthropogenic greenhouse-gas emissions are those linked to human activity
rather than natural sources.

aquifer
an underground water reservoir; if the water contains large quantities of minerals, it is a saline aquifer.

arbitrage
the practice of taking advantage of a price difference between two or more markets.

asset finance
a secured business loan in which the borrower pledges its assets as collateral.

assigned amount unit

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the tradable unit under the trading mechanism of the Kyoto Protocol. Each unit allows the country to emit one tonne of
CO2 equivalent of any of six greenhouse gases covered by the Protocol.

backwardation
Market situation in which futures prices are progressively lower in the distant delivery months. For instance, if the gold
quotation for January is $960.00 per ounce and that for June is $945.00 per ounce, the backwardation for five months
against January is $15.00 per ounce. (Backwardation is the opposite of contango).

balance of payments
essentially a countrys bank statement, which shows all transactions with other countries throughout the world.

biodiesel
a diesel-equivalent, processed fuel made from the esterification (a chemical process that removes glycerine from oil)
of both vegetable oils and animal fats.

biofuels
fuels derived from biomass or waste feedstocks; includes ethanol and biodiesel.

biogas
a mixture of methane and CO2 produced by bacterial degradation of organic matter and used as a fuel.

biomass
renewable energy from living (or recently living) plants and animals; e.g. wood chippings, crops and manure. Plants
store energy from the sun while animals get their energy from the plants they eat.

biomass-to-liquids
a process featuring biomass gasification into syngas (using Fischer-Tropsch catalytic synthesis or a methanol-togasoline reaction path) followed by synthesis of liquid products (such as diesel, naphtha or gasoline). The process is
similar to those used in coal-to-liquids or gas-to-liquids.

black liquor
a by-product from chemical pulping processes that consists of lignin residue combined with water and the chemicals
used for extracting lignin.

bond
a formal contract to repay borrowed money with interest at fixed intervals.

brown coal
includes lignite and sub-bituminous coal where lignite is defined as non-agglomerating coal with a gross calorific value
less than 4 165 kilocalories per kilogramme (kcal/kg) and sub-bituminous coal is defined as non-agglomerating coal
with a gross calorific value between 4 165 kcal/kg and 5 700 kcal/kg.

Budget Committee
Committee on Budget and Expenditure (of the IEA); also indicated as CBE

bunkers
includes both international marine bunkers and international aviation bunkers (see respective category definitions).

carbon capture and storage (CCS)

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a group of technologies used to reduce CO2 emissions from large CO2 sources (such as fossil fuel or biomass power
generation) and industrial processes (such as cement, iron and steel and fertilizer manufacturing). Following capture,
CO2 is transported and stored in specifically selected and characterised geological formations over 1 000 m below the
ground. Aspects of the CCS chain have been used in industry for many decades; however, the complete process has
been demonstrated at a commercial scale at only five locations around the world.

carbon footprint
the full quantity of greenhouse gases that can be attributed to an individual, a plant, a company, a product or a whole
economy.

carbon market
the set of organised and bilateral transactions by which countries trade credits received for greenhouse-gas emission
reductions. The market is used to comply with emission goals, or to voluntarily offset a countrys own emissions. The
carbon market was launched by the creation of three mechanisms under the Kyoto Protocol: emissions trading, across
developed countries; the Clean Development Mechanism, based on projects in developing countries; and Joint
Implementation, based on projects in developed countries.

Clean Development Mechanism (CDM)

the mechanism under the Kyoto Protocol by which a developing country can earn certified emission reductions
(CERs) for a project that reduces emissions (e.g. carbon trading).

climate change
the change in climate (i.e. regional temperature, precipitation, extreme weather, etc.) caused by increase in the
greenhouse effect. (see global warming).

Climate Change Experts Group (CCXG)

The OECD and IEA jointly act as Secretariat for this ad hoc group of climate negotiators from member countries.

co-generation (or combined heat and power)

the simultaneous generation of both electricity and heat from the same fuel, for useful purposes. The fuel varies
greatly and can include coal, biomass, natural gas, nuclear material, the sun or the heat stored in the earth.

coal
Coal refers to a variety of solid, combustible, sedimentary, organic rocks that are composed mainly of carbon and
varying amounts of other components such as hydrogen, oxygen, sulphur and moisture. Coal is formed from
vegetation that has been consolidated between other rock strata and altered by the combined effects of pressure and
heat over millions of years. Many different classifications of coal are used around the world, reflecting a broad range of
ages, compositions and properties.

coal-to-liquids
the transformation of coal into liquid hydrocarbons. It can be achieved through either coal gasification into syngas (a
mixture of hydrogen and carbon monoxide), combined with Fischer-Tropsch or methanol-to-gasoline synthesis to
produce liquid fuels, or through the less developed direct-coal liquefaction technologies in which coal is directly
reacted with hydrogen.

coalbed methane (CBD)

methane found in coal seams that is a source of unconventional natural gas.

coke oven coke

the solid product obtained from the carbonisation of coal, principally coking coal, at high temperature. Semi-coke, the
solid product obtained from the carbonisation of coal at low temperatures, is also included, along with coke and semi-

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coke.

coking coal
hard coal of a quality that allows the production of coke suitable to support a blast furnace charge.

concentrating solar power (CSP)

devices that concentrate energy from the suns rays to heat a receiver to high temperatures. This heat is transformed
first into mechanical energy (by turbines or other engines) and then into electricity. (See also Photovoltaic).

condensates
condensates are liquid hydrocarbon mixtures recovered from associated or non-associated gas reservoirs. They are
composed of C5 and higher carbon number hydrocarbons and normally have an API between 50 and 85.

contango
Market situation in which prices in succeeding delivery months are progressively higher than in the nearest delivery
month; the opposite of backwardation.

corporate debt
the liabilities held by a company used to fund investments.

derivatives
generally used as an instrument to hedge risk, but can also be used for speculative purposes.

direct equity investment

the acquisition of equity (or shares) in a company.

dual fuel
a vehicle that has two fuel systems and can switch from one fuel to the other, such as gasoline/compressed natural
gas (CNG).

dynamic targets
emission objectives that are adjusted according to a pre-agreed metric such as GDP for a country or production level
for an industry.

electric vehicle (EV)

a plug-in, battery electric vehicle. It is sometimes also termed battery electric vehicle. EVs do not have an internal
combustion engine.

electricity generation
the total amount of electricity generated by power only or combined heat and power plants including generation
required for own use. This is also referred to as gross generation.

electricity production
the total amount of electricity generated by a power plant. It includes own-use electricity, as well as transmission and
distribution losses.

emergency response exercises

main objective is to train relevant government officials and oil industry stakeholders in emergency procedures. The
IEAs work in this area began with the development of Emergency Response Exercises for its member countries in the

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wake of oil supply disruptions in the 1970s, which threatened the global economy.

emission quota
the portion or share of total allowable emissions assigned to a country or group of countries within a framework of
maximum total emissions and mandatory allocations of resources or assessments (Intergovernmental Panel on
Climate Change).

emission reduction units (ERU)

representing 1 tonne of CO2 equivalent, generated under the Kyoto Protocols Joint Implementation provisions.

Energy Development Index

a composite measure of energy use in developing countries (developed by the IEA). Inputs are commercial energy
consumption per capita, share of commercial energy in total final consumption (TFC), and share of population with
access to electricity.

energy efficiency
something is more energy efficient if it delivers more services for the same energy input, or the same services for less
energy input. For example, when a compact florescent light (CFL) bulb uses less energy than an incandescent bulb to
produce the same amount of light, the CFL is considered to be more energy efficient. For more information

energy efficiency indicators

show policy makers where energy savings can be made.

energy intensity
a measure of total primary energy use per unit of gross domestic product.

energy poverty
a lack of access to modern energy services. These services are defined as household access to electricity and clean
cooking facilities (e.g. fuels and stoves that do not cause air pollution in houses).

energy security
the uninterrupted availability of energy sources at an affordable price.

energy technology roadmap

focuses on a single technology and outlines a clear and systematic path for its deployment within a set time period.
The roadmapping process involves detailed analysis and assessments of aspects such as research, development and
deployment of the technology, the legal, regulatory and financial issues, and consumer acceptance issues.

enhanced oil recovery (EOR)

also known as tertiary oil recovery, it follows primary recovery (oil produced by the natural pressure in the reservoir)
and secondary recovery (using water injection). Various EOR technologies exist, such as steam injection,
hydrocarbon injection, underground combustion and CO2 flooding.

ethanol
is produced from fermenting any biomass high in carbohydrates. Today, ethanol is made from starches and sugars,
but advanced generation technologies will allow it to be made from cellulose and hemicellulose, the fibrous material
that makes up the bulk of most plant matter.

exchange-traded commodity
traded on an exchange which is controlled by rules and regulations, such as the New York Mercantile Exchange

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(NYMEX). A non-exchange traded commodity is traded between physical buyers and sellers outside of such an
exchange.

Fischer-Tropsch (FT) synthesis

catalytic production process for the production of synthetic fuels. Natural gas, coal and biomass feedstocks can be
used.

fission
a reaction when the nucleus of an atom, having captured a neutron, splits into two or more nuclei, and in so doing,
releases a significant amount of energy as well as more neutrons. These neutrons then go on to split more nuclei and
a chain reaction takes place.

flex fuel
a vehicle that has one fuel system but can mix different types of fuels, such as gasoline/ethanol, in the same tank, in
any (or a wide range of) mixtures.

fuel cell models

convert hydrogen into electricity using a fuel cell system. Hydrogen is typically stored on-board the vehicle for
conversion, so these need not be plug-in vehicles. However, it appears likely that plug-in hybrid type fuel cell vehicles
with batteries and a fuel cell system instead of an internal combustion engine may be an optimal configuration,
and thus they would be plug-in vehicles.

fusion
a process with nuclei collide and join together to form a heavier atom. When this happens a considerable amount of
energy gets released. (This is what happens at the Suns core).

futures
tradable financial contracts.

gas
includes natural gas (both associated and non-associated with petroleum deposits, but excluding natural gas liquids)
and gas-works gas.

gas-to-liquids
a process featuring reaction of methane with oxygen or steam to produce syngas (a mixture of hydrogen and carbon
monoxide) followed by synthesis of liquid products (such as diesel and naphtha) from the syngas using FischerTropsch catalytic synthesis. The process is similar to those used in coal-to-liquids or biomass-to-liquids.

geothermal
energy available as heat emitted from within the earths crust, usually in the form of hot water or steam.

global warming
the observed increased of the global average temperature as a result of human and other activities, including through
the increased concentration of greenhouse gases such as CO2 from energy.

Glossary
The following definitions reflect those used by the IEA; definitions used by other organisations and publications may
vary.

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Glossary
Acronyms and Abbreviations
Units of Measure

green certificates
amount of electricity produced by green methods;set by regulations but can be traded.

greenhouse effect
greenhouse gases (such as water vapour, CO2, methane, etc) in the atmosphere absorb and re-emit heat being
radiated from the earth, trapping warmth.

greenhouse gases
referring to gases that contribute to the greenhouse effect by absorbing infrared radiation (heat). Anthropogenic
emissions of six greenhouse gases are covered by the Kyoto Protocol.

gross domestic product (GDP)

a countrys annual economic output.

hard coal
coal of gross calorific value greater than 5 700 kilocalories per kilogramme on an ashfree but moist basis. Hard coal
can be further disaggregated into anthracite, coking coal and other bituminous coal.

heat
In IEA energy statistics, heat refers to heat produced for sale only. Most heat included in this category comes from the
combustion of fuels, although some small amounts are produced from geothermal sources, electrically powered heat
pumps and boilers.

heat energy
Heat is obtained from fuels combustion, nuclear reactors, geothermal reservoirs, capture of sunlight, exothermic
chemical processes and heat pumps which can extract it from ambient air and liquids. It may be used for heating or
cooling or converted into mechanical energy for transport vehicles or electricity generation. Commercial heat sold is
reported under total final consumption with the fuel inputs allocated under power generation.

heavy petroleum products

heavy petroleum products include heavy fuel oil.

hedge funds
an investment fund opened to a limited range of investors. These funds aggressively manage a portfolio of
investments that use advanced investment strategies such as leveraged, long, short and derivative positions with the
goal of generating high returns.

Human Poverty Index

measures life expectancy at birth, adult literacy and & school enrolment, and per-capita GDP (adjusted for purchasing
power parity [PPP]). HPI-1 is a modified HPI for developing countries that measures probability at birth of not surviving
to 40, adult literacy, % of population without clean water and % of children underweight.

hydro
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the energy content of the electricity produced in hydropower plants assuming 100% efficiency.

hydropower
the electrical energy derived from turbines being spun by fresh flowing water. This can be from rivers or from manmade installations, where water flows from a high-level reservoir down through a tunnel and away from a dam. For
more information, click here.

industry
a sector that includes fuel used within the manufacturing and construction industries. Key industry sectors include iron
and steel, chemical and petrochemical, non-metallic minerals, and pulp and paper. Use by industries for the
transformation of energy into another form or for the production of fuels is excluded and reported separately under
other energy sector. Consumption of fuels for the transport of goods is reported as part of the transport sector.

integrated gasification combined cycle (IGCC)

a technology in which a solid or liquid fuel (coal, heavy oil or biomass) is gasified, followed by use for electricity
generation in a combined-cycle power plant. It is widely considered a promising electricity generation technology, due
to its potential to achieve high efficiencies and low emissions.

international aviation bunkers

This category includes the deliveries of aviation fuels to aircraft for international aviation. Fuels used by airlines for
their road vehicles are excluded. The domestic/international split is determined on the basis of departure and landing
locations and not by the nationality of the airline. For many countries this incorrectly excludes fuels used by
domestically owned carriers for their international departures.

international marine bunkers

This category covers those quantities delivered to ships of all flags that are engaged in international navigation. The
international navigation may take place at sea, on inland lakes and waterways, and in coastal waters. Consumption by
ships engaged in domestic navigation is excluded. The domestic/international split is determined on the basis of port
of departure and port of arrival, and not by the flag or nationality of the ship. Consumption by fishing vessels and by
military forces is also excluded and included in residential, services and agriculture.

light petroleum products

include liquefied petroleum gas (LPG), naphtha and gasoline.

liquefied natural gas (LNG)

natural gas that has been liquefied by reducing its temperature to -162C at atmospheric pressure. In this way, the
space requirements for storage and transport are reduced by a factor of over 600.

liquidity
the ability to sell assets without significant movement in the price and with minimum loss of value.

low-carbon technologies
technologies that produce low or zero greenhouse-gas emissions while operating. In the power sector this
includes fossil-fuel plants fitted with carbon capture and storage, nuclear plants and renewable-based generation
technologies.

lower heating value

the heat liberated by the complete combustion of a unit of fuel when the water produced is assumed to remain as a
vapour and the heat is not recovered.

Market allocation (MARKAL) model

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a generic model tailored by the input data to represent the evolution over a period of usually 40 to 50 years of a
specific energy system at the national, regional, state or province, or community level. More

market fundamentals
all factors which affect the balance between supply and demand.

markets
structures which allow buyers and sellers to exchange any type of goods, services and information.

middle distillates
include jet fuel, diesel and heating oil.

Millennium Development Goals

global commitments to eradicate extreme poverty. They were agreed to by all the worlds countries and all the worlds
leading development institutions in September 2000. For more information, click here.

modern biomass
includes all biomass with the exception of traditional biomass.

modern renewables
includes all types of renewables (such as wind and solar) with the exception of traditional biomass.

Multilateral Technology Initiatives

, also known as Implementing Agreements (of the IEA):
Advanced Fuel Cells (AFCIA)
Advanced Materials for Transportation (AMT IA)
Advanced Motor Fuels (AMF IA)
Bioenergy (Bioenergy IA)
Buildings and Community Systems (ECBCS IA)
Clean Coal Centre (CCC IA)
Climate Technology Initiative (CTI IA)
Co-operation on Tokamak Programmes (CTP IA)
Demand-Side Management (DSM IA)
District Heating and Cooling, including the Integration of Combined Heat and Power (DHC IA)
Efficient Electrical End-Use Equipment (4E IA)
Electricity Networks Analysis, Research & Development (ENARD IA)
Emissions Reduction in Combustion (Combustion IA)
Energy Storage (ECES IA)
Energy Technology Data Exchange (ETDE IA)
Energy Technology Systems Analysis Programme (ETSAP IA)
Enhanced Oil Recovery (EOR IA)
Environmental, Safety and Economic Aspects of Fusion Power (ESE Fusion Power IA)
Fluidized Bed Conversion (FBC IA)
Fusion Materials (Fusion Materials IA)
Geothermal (Geothermal IA)
Greenhouse Gas (GHG IA)
Heat Pumping Technologies (Heat Pumps IA)
High-Temperature Superconductivity on the Electric Power Sector (HTS IA)
Hybrid and Electric Vehicles (HEV IA)

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Hydrogen (Hydrogen IA)
Hydropower (Hydropower IA)
Industrial Energy-Related Technologies and Systems (IETS IA)
Multiphase Flow Sciences (Multiphase IA)
Nuclear Technology of Fusion Reactors (NTFR IA)
Ocean Energy Systems (OES IA)
Photovoltaic Power Systems (PVPS IA)
Plasma Wall Interaction in TEXTOR (Textor IA)
Renewable Energy Technology Deployment (RETD IA)
Reversed Field Pinches (RFP IA)
Smart Grids
Solar Heating and Cooling (SHC IA)
SolarPACES (SolarPACES IA)
Spherical Tori (Spherical Tori IA)
Stellarator-Heliotron Concept (Stellarator/Heliotron IA)
Wind Energy Systems (Wind IA)

natural decline rate

the base production decline rate of an oil or gas field without intervention to enhance production.

natural gas liquids

the liquid or liquefied hydrocarbons produced in the manufacture, purification and stabilisation of natural gas. These
are those portions of natural gas which are recovered as liquids in separators, field facilities, or gas processing plants.
NGLs include but are not limited to ethane, propane, butane, pentane, natural gasoline and condensates.

non-binding target
allows a country to sell allowances if its emissions are below the target, but does not oblige it to buy allowances if
emissions are above.

non-energy use
fuels used for chemical feedstocks and non-energy products. Examples of non-energy products include lubricants,
paraffin waxes, coal tars, and oils used as timber preservatives.

nuclear
the primary heat equivalent of the electricity produced by a nuclear plant with an average thermal efficiency of 33%.

observed decline rate

the production decline rate of an oil or gas field after all measures have been taken to maximise production. It is the
aggregation of all the production increases and declines of new and mature oil or gas fields in a particular region.

oil
includes crude oil, condensates, natural gas liquids, refinery feedstocks and additives, other hydrocarbons (including
emulsified oils, synthetic crude oil, mineral oils extracted from bituminous minerals such as oil shale, bituminous sand
and oils from CTL and GTL) and petroleum products (refinery gas, ethane, LPG, aviation gasoline, motor gasoline, jet
fuels, kerosene, gas/diesel oil, heavy fuel oil, naphtha, white spirit, lubricants, bitumen, paraffin waxes and petroleum
coke).

oil burden
nominal oil expenditures (demand multiplied by the crude price) divided by nominal GDP. This is a proxy of how much
any given economy spends on its oil needs in a given year. Typically, the global oil burden hovers around 2% of GDP
excepting during oil price shocks, most recently in 2008, and perhaps in 2011 as well, if prices continue to rise. In

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other words, the oil burden is one leading indicator of potential economic trouble ahead.

on-balance sheet funding

debt and equity issued by a company which appears on the companys balance sheet to fund investments.

options
instruments that convey the rights, but not the obligation to engage in a future transaction on an underlying security or
in a future contract.

other energy sector

This term covers the use of energy by transformation industries and the energy losses in converting primary energy
into a form that can be used in the final consuming sectors. It includes losses by gas works, petroleum refineries, coal
and gas transformation and liquefaction. It also includes energy used in coal mines, in oil and gas extraction and in
electricity and heat

other renewables
includes geothermal, solar, wind, tide/wave/ocean energy for electricity generation. The direct use of geothermal and
solar heat is also included in this category.

photovoltaic (PV)
directly convert solar energy into electricity using a PV cell; this is a semiconductor device that converts solar energy
into electricity. (See also ).

plug-in hybrid electric vehicle (PHEV)

contain both an internal combustion engine and a motor with battery pack. In contrast, a regular hybrid vehicle does
not have enough battery storage on board to be worthwhile adding a plug-in capability. PHEVs tend to have a shorter
electric-driving range than EVs, but conversely have the benefit of a back-up internal combustion engine should the
battery get drained.

power generation
fuel use in electricity plants, heat plants and combined heat and power (CHP) plants. Both main activity producer
plants and small plants that produce fuel for their own use (autoproducers) are included.

price cap
a cap set on the price of traded emissions allowances.

private equity
money invested in companies that are not publicly traded on a stock exchange or invested as part of buyouts of
publicly traded companies in order to make them private companies.

project finance
the financing of long-term infrastructure, industrial projects and public services, based upon a non-recourse or limited
recourse financial structure where project debt and equity used to finance the project are paid back from the cashflow
generated by the project.

purchasing power parity (PPP)

the rate of currency conversion that equalises the purchasing power of different currencies. It makes allowance for the
differences in price levels and spending patterns between different countries.

quotas for CO2 emissions

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the portion or share of total allowable CO2 emissions assigned to a country or group of countries within a framework
of maximum total emissions.

renewable energy
energy that is derived from natural processes (e.g. sunlight and wind) that are replenished at a higher rate than they
are consumed. Solar, wind, geothermal, hydro, and biomass are common sources of renewable energy.

scenarios
World Energy Outlook
- 450 Scenario: A scenario presented in the World Energy Outlook, which sets out an energy pathway consistent with the
goal of limiting the global increase in temperature to 2C by limiting concentration of greenhouse gases in the atmosphere to
around 450 parts per million of CO2.
- Current Policies Scenario: A scenario in the World Energy Outlook that assumes no changes in policies from the mid-point
of the year of publication (previously called the Reference Scenario).
- New Policies Scenario: A scenario in the World Energy Outlook which takes account of broad policy commitments and
plans that have been announced by countries, including national pledges to reduce greenhouse-gas emissions and plans to
phase out fossil-energy subsidies, even if the measures to implement these commitments have yet to be identified or
announced.
- Deferred Investment Case: A scenario created in World Energy Outlook 2011 to analyse how global markets might evolve
if investment in the upstream industry in Middle East and North Africa countries were to fall short of that required in the New
Policies Scenario over the next few years.
- Low Nuclear Case: A scenario created in World Energy Outlook 2011 to examine the implications for global energy
balances of a much smaller role of nuclear power than that projected in any of the three scenarios presented in the WEO2011.

Energy Technology Perspectives

- The 6C Scenario (6DS) is largely an extension of current trends. By 2050, energy use almost doubles (compared with
2009) and total GHG emissions rise even more. In the absence of efforts to stabilise atmospheric concentrations of GHGs,
average global temperature rise is projected to be at least 6C in the long term. The 6DS is broadly consistent with the World
Energy Outlook Current Policy Scenario through 2035.
- The 4C Scenario (4DS) takes into account recent pledges made by countries to limit emissions and step up efforts to
improve energy efficiency. It serves as the primary benchmark in ETP 2012 when comparisons are made between scenarios.
Projecting a long-term temperature rise of 4C, the 4DS is broadly consistent with the World Energy Outlook New Policies
Scenario through 2035 (IEA, 2011). In many respects, this is already an ambitious scenario that requires significant changes
in policy and technologies. Moreover, capping the temperature increase at 4C requires significant additional cuts in emissions
in the period after 2050.
- The 2C Scenario (2DS) is the focus of ETP 2012. The 2DS describes an energy system consistent with an emissions
trajectory that recent climate science research indicates would give an 80% chance of limiting average global temperature
increase to 2C. It sets the target of cutting energy-related CO2 emissions by more than half in 2050 (compared with 2009)
and ensuring that they continue to fall thereafter. Importantly, the 2DS acknowledges that transforming the energy sector is
vital, but not the sole solution: the goal can only be achieved provided that CO2 and GHG emissions in non-energy sectors
are also reduced. The 2DS is broadly consistent with the World Energy Outlook 450 Scenario through 2035.
- BLUE Map Scenario: This IEA scenario is target-oriented: it sets the goal of halving global energy-related CO2 emissions by
2050 (compared to 2005 levels) and examines the least-cost means of achieving that goal through the deployment of existing
and new low-carbon technologies.

smart grid
an electricity network that uses digital and other advanced technologies to monitor and manage the transport of
electricity from all generation sources to meet the varying electricity demands of end users. Smart grids co-ordinate
the needs and capabilities of all generators, grid operators, end users and electricity market stakeholders to operate
all parts of the system as efficiently as possible, minimising costs and environmental impacts while maximising system
reliability, resilience and stability.

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smart meters
The European Smart Meters Industry Group (ESMG) defines four minimum functionalities of a smart meter: remote
reading, two-way communication, support for advanced tariffing and payment systems and remote disablement and
enablement of supply.

spot prices
the price that is quoted for immediate settlement of a transaction.

steam coal
all other hard coal that is not classified as coking coal. Also included are recovered slurries, middlings and other lowgrade coal products not further classified by type. Coal of this quality is also commonly known as thermal coal.

subsidies
any government action directed primarily at the energy sector that lowers the cost of energy production, raises the
price received by energy producers or lowers the price paid by energy consumers.

syngas
a synthetic gas primarily composed of hydrogen and carbon monoxide produced by a chemical process.

synthetic fuels
any liquid fuel obtained from coal, natural gas or biomass. The best known process is the Fischer-Tropsch synthesis.
An intermediate step in the production of synthetic fuel is often syngas, a mixture of carbon monoxide and hydrogen
produced from coal which is sometimes directly used as an industrial fuel.

technology transfer
The term has two definitions. The first definition is the process of converting scientific findings from research
laboratories into useful products by the private sector. The second definition is used more in economic development
literature and involves cross-border transmission of technology from one country to another.

total final consumption

the sum of consumption by the different end-use sectors. TFC is broken down into energy demand in the following
sectors: industry, transport, buildings (including residential and services) and other (including agriculture and nonenergy use). It excludes international marine and aviation bunkers, except at world level where it is included in the
transport sector.

total final consumption (TFC)

the sum of consumption by the different end-use sectors. Total final consumption is broken down into energy demand
in the following sectors: industry, transport, other (includes agriculture, residential, commercial and public services)
and nonenergy uses. Industry includes manufacturing, construction and mining industries. In final consumption,
petrochemical feedstocks appear under industry use.

total primary energy demand (TPED)

represents domestic demand only and is broken down into power generation, other energy sector and total final
consumption.

total primary energy supply (TPES)

equivalent to total primary energy demand. This represents inland demand only and, except for world energy demand,
excludes international marine and aviation bunkers.

traditional biomass
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the use of fuelwood, charcoal, animal dung and agricultural residues in stoves with very low efficiencies.

transactions
a condition under a contract between a buyer and seller to exchange an asset for payment.

transport
fuels and electricity used in the transport of goods or persons within the national territory irrespective of the economic
sector within which the activity occurs. This includes fuel and electricity delivered to vehicles using public roads or for
use in rail vehicles; fuel delivered to vessels for domestic navigation; fuel delivered to aircraft for domestic aviation;
and energy consumed in the delivery of fuels through pipelines. Fuel delivered to international marine and aviation
bunkers is presented only at the world level and is excluded from the transport sector at the domestic level.

unconventional gas
sources of gas trapped deep underground by impermeable rocks, such as coal, sandstone and shale. The three main
types of unconventional gas are: shale gas (found in shale deposits); coal bed methane, or CBM (extracted from coal
beds) and tight gas (which is trapped underground in impermeable rock formations). While different techniques are
applied, depending on the type of gas being extracted, one common method is known as hydraulic fracturing: large
volumes of water (mixed with some sand and chemicals) are injected underground to create cracks in the rock. This
frees the trapped gas which can then flow into the well bore created by the drill and be collected. Another key
technology is horizontal drilling which enables the exposure of significantly more surface to the well.

unconventional oil
includes oil shale, oil sands-based extra heavy oil and bitumen, derivatives such as synthetic crude products, and
liquids derived from natural gas gas-to-liquid (GTL) or coal-to-liquid (CTL).

venture capital
a form of private capital typically provided for early stage, high potential growth companies.

volatility
the day-to-day, week-to-week, month-to-month or year-to-year variation in asset ort commodity prices.

WEM
a large-scale mathematical construct designed to replicate how energy markets function and is the principal tool used
to generate detailed sector-by-sector and region-by region projections for various scenarios.

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