ECONOMIST COVER TO COVER (2007-1) (1/4회)

[charliek]

READING LEVEL UP JAN, 2007 VOCABULARY ESSENTIAL                                                                    READING LEVEL-UP (1/4)

The conundrums of the deep dark sea (p. 63)

1. r____ i_: If you r____ i_ something such as a fish, you pull it towards you by winding around a reel the wire or line that it is attached to.

2. m_______: M_______s are a kind of shellfish that you can eat from their shells.

3. j_______: A j_______ is a sea creature that has a clear soft body and can sting you.

4. c_________: A c_________ is an animal with a hard shell and several pairs of legs, which usually lives in water. Crabs, lobsters, and shrimps are crustaceans.

5. m_________: A m_________ on a particular activity or process is the stopping of it for a fixed period of time, usually as a result of an official agreement.

6. b______-______ing: When fishermen t_____ for fish, they pull a wide net behind their ship in order to catch fish.

7. t____ f____: If you t____ the f____, you get the blame for something. (INFORMAL)

8. a______-the-b_____: If a policy or a situation applies a______ the b_____, it affects everything or everyone in a particular group.

9. p________: Someone who is p________ deliberately does things that are unreasonable or that result in harm for themselves.

10. o___ s____s: old sailors

11. h______: The h______ of an animal or plant is the natural environment in which it normally lives or grows.

12. t____ one’s c___: If you t____ your c___ from someone or something, you do something similar in a particular situation.

13. p___ the b_____ f____: If someone is ____ing on a b_____ f____ or is ____ing a b_____ f____ on a difficult situation, they are pretending that they are happy or satisfied when they are not.

14. l_________: L________ plants, trees, and gardens are large, healthy, and growing well.

Can the line against bio-terror hold? (p. 64)

1. p____ o___: If you p____ o___ something very difficult, you succeed in achieving it.

2. b______: A b______ is a scientist, especially one who is doing research.  (BRIT, INFORMAL)

3. s________: The s_________s of an official document are the people, organizations, or countries that have signed it. (FORMAL)

4. h_______: A h_______ is a small group of people or things that are standing very close together or lying on top of each other, usually in a disorganized way.

5. c________-h_______ (for information): If an organization acts as a c_______ h______, it collects, sorts, and distributes specialized information.

6. b_______: If someone tries to b_______ their position in a situation, they try to strengthen it.

7. a (dead) c_____: If you say that someone or something is a c_____, you mean that you are certain they will succeed. (BRIT, INFORMAL)

8. r_____: 피마자에서 채취한 백색의 유독한 단백질 가루

9. s________: To s________ a plan or attempt means to spoil it completely. (mainly BRIT, JOURNALISM)

10. p_______: P_______ is a system of rules about the correct way to act in formal situations.

11. c___________ (commercial secrets): If someone c___________s themselves or their beliefs, they do something which damages their reputation for honesty, loyalty, or high moral principles.

12. n_____ and s______: to s______ someone by publishing his or her n_____, especially sex offenders

After Sakhalin (p. 67)

1. a______: An a______ is something which people often say and which expresses a general truth about some aspect of life. (OLD-FASHIONED)

2. p___ (assets): You can refer to someone or something as a p___ when people consider them to be of great value or importance.

3. l________: A l________ activity, job, or business deal is very profitable.

4. p_______: A p_______ is a reason which you pretend has caused you to do something.

5. r_______: If you r_______ something that is wrong, you change it so that it becomes correct or satisfactory.

6. p___________s: A p__________ that someone or something has is a strange or unusual characteristic or habit.

7. (to someone’s) i___: I___ is anger. (FORMAL)

8. p_________: If you describe food or drink as p_________, you mean that it tastes pleasant. (FORMAL)

9. s___________s: You can use s__________s to refer to rather dishonest or immoral behaviour, especially when you think it is amusing or interesting. (INFORMAL)

10. f_____ and f______: You can refer to plants as f_____, especially the plants growing in a particular area. (FORMAL)/ Animals, especially the animals in a particular area, can be referred to as f______.

11. e__________: If a government or other authority e_________s someone's property, they take it away from them for public use. (LEGAL)

12. c_________: If you c________, you stop resisting and do what someone else wants you to do.

13. p__________ (treatment) : If you get p__________ treatment, you are treated better than other people and therefore have an advantage over them.

14. a_________: The a_________ of something is the decision that it should be given to a particular person or used for a particular purpose.

15. c___________: If someone's power or freedom is c__________d, it is limited or restricted. (FORMAL)

16. a c_______: A c_______ of people or things is a small group of them. (WRITTEN)

17. t_________: If someone or something t_________s you, they make you feel hopeful and excited about getting what you want, usually before disappointing you by not letting you have what they appeared to offer.

18. d________ w____: If you d_______ w____ something, you stop using it or get rid of it completely, especially because you no longer need it.

19. n______s: The n______s of a situation are its details, especially with regard to good manners or the appropriate behaviour for that situation.  

Bits of memory (p. 71)

1. g______: A g______ is a device or small machine which performs a particular task, usually in a new and efficient way. People often use g______ to refer to a device or machine when they do not know what it is really called.

2. m____: If you say that someone m____s something, you mean that they get as much benefit or profit as they can from it

3. o_______: Something that is o_______ is no longer needed because something better has been invented.

4. s________: A s________ person, especially an old person, is lively and active.

5. c____: If you c____ a word or a phrase, you are the first person to say it.

Economic Focus: Shots across the stern (p. 82)

1. g_______: Metaphorically, a person who is overly garrulous or prone to making empty, unsupportable statements.

2. e_________: E_______ knowledge is that which is specialised or advanced in nature, available only to a narrow circle of "enlightened", "initiated", or highly educated people

3. r______: You can say that you are going to r______ when you want to draw people's attention to the fact that you are going to repeat the main points of an explanation, argument, or description, as a summary of it.

4. f_______: A f_______ is a group of small ships, usually military ships.

5. r________: R_______ is very greedy or selfish behaviour. (FORMAL)

6. b_______: You use b______ to indicate that the person, thing, or event that you are mentioning is an exception to your statement.

7. c_______: A c______ of people is a group who have something in common.

8. b_______: If something bad or unlucky b______s you, it happens to you. (LITERARY)

9. p________: Someone who is p________ deliberately does things that are unreasonable or that result in harm for themselves.

10. give (someone) s______ s______: If someone or something gets s______ s______, they are paid very little attention.

11. p__________: A p_________ is a very poor person. (FORMAL)

12. p_________: If you describe someone as a p__________, you disapprove of them because you believe they are powerful only because they are rich. (FORMAL)

13. s________: A s______ supporter or believer is very loyal to a person, organization, or set of beliefs, and supports them strongly.

14. s______: S______s are clever and amusing remarks. (LITERARY) 

Lights and shades (p. 87)

1. p_______ h_______: 역사 심리학 《심리학적 방법으로 역사적 사건과 인물을 분석하는 학문》

2. Z_______: Z_______ is a movement which was originally concerned with establishing a political and religious state in Palestine for Jewish people, and is now concerned with the development of Israel.

3. t________: If you describe something as a t_______ of another thing, you mean that it is a very bad representation of that other thing.

5. give f______ (to something): If you put f______ on something, you add details and more information to it.

6. a________ (logic): An a________ feeling, memory, or interest is one that you have for a very long time.

7. m_______: A m_______ is a refusal by people, usually soldiers or sailors, to continue obeying a person in authority.

8. h_____: If you refer to someone as a h_____, you mean that they believe in using force and violence to achieve something, rather than using more peaceful or diplomatic methods. Compare dove.

9. w___________: If you describe something as w___________, you mean that it has been done quite well and sensibly, but not in a particularly imaginative or original way.

10. d__________: When passengers d_________ from a ship, aeroplane, or bus, they leave it at the end of their journey.

11. f_________ (influence): A f_________ period of time or experience is one that has an important and lasting influence on a person's character and attitudes.

12. p_________: You use p_________ to describe situations or states that keep occurring or which seem to exist all the time

13. e_______: E_______ is a feeling of hatred towards someone that lasts for a long time.

14. i____ w____: You can use i____ to describe the character or behaviour of someone who is very firm in their decisions and actions, or who can control their feelings well.

15. a_________: An a_________ is an incident or way of behaving that is not typical. (FORMAL)

16. l_____ (excuse): If you describe an excuse, argument, or remark as l_____, you mean that it is poor or weak.

17. i__________ (conflicts): I__________ problems or situations are very difficult to deal with. (FORMAL)

18. i___________: If you describe someone as i___________, you mean that they refuse to behave differently or to change their attitude to something. (FORMAL)

19. q_________: A q_________ is a difficult, complicated, or unpleasant situation which is not easy to avoid or escape from.

20. m__________: If you m__________ a difficult or complicated activity, you plan it in detail and then make sure that it happens successfully.

21. p_________: If you say that someone p__________s a particular thing or quality, you mean that they seem to be a perfect example of that thing, or to have that quality to a very large degree.

Problems you did not know you had (p. 89)

1. c_______: If you describe a person or their behaviour as c_______, you mean they are very cheerful and lively. (INFORMAL)

2. a__ p_____: An a__ p_____ is a young person from a foreign country who lives with a family in order to learn the language and who helps to look after the children.

3. c___________: c___________ is a short but detailed collection of information, usually in a book.

4. s_______: S_______ means the same as snobbish.

5. f_____: Something that is f_____ is difficult to do or use because it involves small or complicated objects. (BRIT)

6. w_____: If you w_____, the muscles of your face tighten suddenly because you have felt a pain or because you have just seen, heard, or remembered something unpleasant.

7. be l______ed with: If a situation or activity is l______ed by something, it is made more interesting or cheerful.

8. t____: You can refer to a small piece of information about someone's private affairs as a t____, especially when it is interesting and shocking.

9. b__________: 중탄산염

10. d_______: 물때를 벗기다

11. a s______-h____ i__ s___: If something remains i__ s___, especially while something is done to it, it remains where it is. (FORMAL)

12. i_________: Something that is i_________ is very clever and involves new ideas, methods, or equipment.

13. d_____: If you say that someone is a d_____, you mean that they are ignorant and stupid. (INFORMAL)

14. o__ the h____: (animal) alive

15. i________: If you are i_________, you treat a person with special kindness, often in a way that is not good for them.

16. s_____: Someone who is s_____ is sulking or is unwilling to enjoy themselves.

17. a______: Something that is a_____ is secret or mysterious. (FORMAL)

18. a w____: If there is a w____ of a particular smell, you smell it only slightly or only for a brief period of time, for example as you walk past someone or something.

19. uns_____ly: If it is s_____ in a place, it is unpleasantly warm and there is not enough fresh air.

20. l____-b____: If you describe someone as l____-b____, you mean that  they behave in a calm relaxed way as if nothing will ever worry  them. (INFORMAL)

The conundrums of the deep dark sea (p. 63)

1. reel in: If you reel in something such as a fish, you pull it towards you by winding around a reel the wire or line that it is attached to.

2. mussel: Mussels are a kind of shellfish that you can eat from their shells.

3. jellyfish: A jellyfish is a sea creature that has a clear soft body and can sting you.

4. crustacean: A crustacean is an animal with a hard shell and several pairs of legs, which usually lives in water. Crabs, lobsters, and shrimps are crustaceans.

5. moratorium: A moratorium on a particular activity or process is the stopping of it for a fixed period of time, usually as a result of an official agreement.

6. bottom-trawling: When fishermen trawl for fish, they pull a wide net behind their ship in order to catch fish.

7. take flak: If you take the flak, you get the blame for something. (INFORMAL)

8. across-the-board: If a policy or a situation applies across the board, it affects everything or everyone in a particular group.

9. perverse: Someone who is perverse deliberately does things that are unreasonable or that result in harm for themselves.

10. old salts: old sailors

11. habitat: The habitat of an animal or plant is the natural environment in which it normally lives or grows.

12. take one’s cue: If you take your cue from someone or something, you do something similar in a particular situation.

13. put the brave face: If someone is putting on a brave face or is putting a brave face on a difficult situation, they are pretending that they are happy or satisfied when they are not.

14. luxuriant: Luxuriant plants, trees, and gardens are large, healthy, and growing well.

Can the line against bio-terror hold? (p. 64)

1. pull off: If you pull off something very difficult, you succeed in achieving it.

2.boffin: A boffin is a scientist, especially one who is doing research.  (BRIT, INFORMAL)

3. signatory: The signatories of an official document are the people, organizations, or countries that have signed it. (FORMAL)

4. huddle: A huddle is a small group of people or things that are standing very close together or lying on top of each other, usually in a disorganized way.

5. clearing-house (for information): If an organization acts as a clearing house, it collects, sorts, and distributes specialized information.

6. bolster: If someone tries to bolster their position in a situation, they try to strengthen it.

7. a (dead) cert: If you say that someone or something is a cert, you mean that you are certain they will succeed. (BRIT, INFORMAL)

8. ricin: 피마자에서 채취한 백색의 유독한 단백질 가루

9. scupper: To scupper a plan or attempt means to spoil it completely. (mainly BRIT, JOURNALISM)

10. protocol: Protocol is a system of rules about the correct way to act in formal situations.

11. compromise (commercial secrets): If someone compromises themselves or their beliefs, they do something which damages their reputation for honesty, loyalty, or high moral principles.

12. name and shame: to shame someone by publishing his or her name, especially sex offenders

After Sakhalin (p. 67)

1. adage: An adage is something which people often say and which expresses a general truth about some aspect of life. (OLD-FASHIONED)

2. prize (assets): You can refer to someone or something as a prize when people consider them to be of great value or importance.

3. lucrative: A lucrative activity, job, or business deal is very profitable.

4. pretext: A pretext is a reason which you pretend has caused you to do something.

5. rectify: If you rectify something that is wrong, you change it so that it becomes correct or satisfactory.

6. peculiarities: A peculiarity that someone or something has is a strange or unusual characteristic or habit.

7. (to someone’s) ire: Ire is anger. (FORMAL)

8. palatable: If you describe food or drink as palatable, you mean that it tastes pleasant. (FORMAL)

9. shenanigans: You can use shenanigans to refer to rather dishonest or immoral behaviour, especially when you think it is amusing or interesting. (INFORMAL)

10. flora and fauna: You can refer to plants as flora, especially the plants growing in a particular area. (FORMAL)/ Animals, especially the animals in a particular area, can be referred to as fauna.

11. expropriate: If a government or other authority expropriates someone's property, they take it away from them for public use. (LEGAL)

12. capitulation: If you capitulate, you stop resisting and do what someone else wants you to do.

13. preferential (treatment) : If you get preferential treatment, you are treated better than other people and therefore have an advantage over them.

14. allocation: The allocation of something is the decision that it should be given to a particular person or used for a particular purpose.

15. circumscribe: If someone's power or freedom is circumscribed, it is limited or restricted. (FORMAL)

16. a clutch: A clutch of people or things is a small group of them. (WRITTEN)

17. tantalize: If someone or something tantalizes you, they make you feel hopeful and excited about getting what you want, usually before disappointing you by not letting you have what they appeared to offer.

18. dispense with: If you dispense with something, you stop using it or get rid of it completely, especially because you no longer need it.

19. niceties: The niceties of a situation are its details, especially with regard to good manners or the appropriate behaviour for that situation.  

Bits of memory (p. 71)

1. gizmo: A gizmo is a device or small machine which performs a particular task, usually in a new and efficient way. People often use gizmo to refer to a device or machine when they do not know what it is really called.

2. milk: If you say that someone milks something, you mean that they get as much benefit or profit as they can from it

3. obsolete: Something that is obsolete is no longer needed because something better has been invented.

4. sprightly: A sprightly person, especially an old person, is lively and active.

5. coin: If you coin a word or a phrase, you are the first person to say it.

Economic Focus: Shots across the stern (p. 82)

1. gasbag: Metaphorically, a person who is overly garrulous or prone to making empty, unsupportable statements.

2. esoterica: Esoteric knowledge is that which is specialised or advanced in nature, available only to a narrow circle of "enlightened", "initiated", or highly educated people

3. recap: You can say that you are going to recap when you want to draw people's attention to the fact that you are going to repeat the main points of an explanation, argument, or description, as a summary of it.

4. flotilla: A flotilla is a group of small ships, usually military ships.

5. rapacity: Rapacity is very greedy or selfish behaviour. (FORMAL)

6. barring: You use barring to indicate that the person, thing, or event that you are mentioning is an exception to your statement.

7. cohort: A cohort of people is a group who have something in common.

8. befall: If something bad or unlucky befalls you, it happens to you. (LITERARY)

9. perverse: Someone who is perverse deliberately does things that are unreasonable or that result in harm for themselves.

10. give (someone) short shrift: If someone or something gets short shrift, they are paid very little attention.

11.pauper: A pauper is a very poor person. (FORMAL)

12. plutocrat: If you describe someone as a plutocrat, you disapprove of them because you believe they are powerful only because they are rich. (FORMAL)

13. staunch: A staunch supporter or believer is very loyal to a person, organization, or set of beliefs, and supports them strongly.

14. sally: Sallies are clever and amusing remarks. (LITERARY) 

Lights and shades (p. 87)

1. psycho history: 역사 심리학 《심리학적 방법으로 역사적 사건과 인물을 분석하는 학문》

2. Zionism: Zionism is a movement which was originally concerned with establishing a political and religious state in Palestine for Jewish people, and is now concerned with the development of Israel.

3. travesty: If you describe something as a travesty of another thing, you mean that it is a very bad representation of that other thing.

5. give flesh (to something): If you put flesh on something, you add details and more information to it.

6. abiding (logic): An abiding feeling, memory, or interest is one that you have for a very long time.

7. mutiny: A mutiny is a refusal by people, usually soldiers or sailors, to continue obeying a person in authority.

8. hawk: If you refer to someone as a hawk, you mean that they believe in using force and violence to achieve something, rather than using more peaceful or diplomatic methods. Compare dove.

9. workmanlike: If you describe something as workmanlike, you mean that it has been done quite well and sensibly, but not in a particularly imaginative or original way.

10. disembark: When passengers disembark from a ship, aeroplane, or bus, they leave it at the end of their journey.

11. formative (influence): A formative period of time or experience is one that has an important and lasting influence on a person's character and attitudes.

12. perennial: You use perennial to describe situations  or states that keep occurring or which seem to exist all the time

13. enmity: Enmity is a feeling of hatred towards someone that lasts for a long time.

14. iron will: You can use iron to describe the character or behaviour of someone who is very firm in their decisions and actions, or who can control their feelings well.

15. aberration: An aberration is an incident or way of behaving that is not typical. (FORMAL)

16. lame (excuse): If you describe an excuse, argument, or remark as  lame, you mean that it is poor or weak.

17. intractable (conflicts): Intractable problems or situations are very difficult to deal with. (FORMAL)

18. intransigent: If you describe someone as intransigent, you mean that they refuse to behave differently or to change their attitude to something. (FORMAL

19. quagmire: A quagmire is a difficult, complicated, or unpleasant situation which is not easy to avoid or escape from.

20. mastermind: If you mastermind a difficult or complicated activity, you plan it in detail and then make sure that it happens successfully.

21. personify: If you say that someone personifies a particular thing or quality, you mean that they seem to be a perfect example of that thing, or to have that quality to a very large degree.

Problems you did not know you had (p. 89)

1. chirpy: If you describe a person or their behaviour as chirpy, you mean they are very cheerful and lively. (INFORMAL)

2. au pair: An au pair is a young person from a foreign country who lives with a family in order to learn the language and who helps to look after the children.

3. compendium: compendium is a short but detailed collection of information, usually in a book.

4. snobby: Snobby means the same as snobbish.

5. fiddly: Something that is fiddly is difficult to do or use because it involves small or complicated objects. (BRIT)

6. wince: If you wince, the muscles of your face tighten suddenly because you have felt a pain or because you have just seen, heard, or remembered something unpleasant.

7. be leavened with: If a situation or activity is leavened by something, it is made more interesting or cheerful.

8. titbit: You can refer to a small piece of information about someone's private affairs as a titbit, especially when it is interesting and shocking.

9. bicarbonate: 중탄산염

10. descale: 물때를 벗기다

11. a shower-head in situ: If something remains in situ, especially while something is done to it, it remains where it is. (FORMAL)

12. ingenious: Something that is ingenious is very clever and involves new ideas, methods, or equipment.

13. dimwit: If you say that someone is a dimwit, you mean that they are ignorant and stupid. (INFORMAL)

14. on the hoof: (animal) alive

15. indulgent: If you are indulgent, you treat a person with special kindness, often in a way that is not good for them.

16. sulky: Someone who is sulky is sulking or is unwilling to enjoy themselves.

17. arcane: Something that is arcane is secret or mysterious. (FORMAL)

18. a whiff: If there is a whiff of a particular smell, you smell it only slightly or only for a brief period of time, for example as you walk past someone or something.

19. unstuffily: If it is stuffy in a place, it is unpleasantly warm and there is not enough fresh air.

20. laid-back: If you describe someone as laid-back, you mean that  they behave in a calm relaxed way as if nothing will ever worry  them. (INFORMAL)

READING LEVEL-UP, JAN, 2007 TERMS & BACKGROUND                                                            INSTRUCTOR KIM SOO-YEON (1/4)

Subprime subsidence (p. 77)

1. subprime: 우대금리보다 높은 금리

2. loan origination: Loan orgination is the process by which a lender obtains new loans.

This includes qualifying borrowers appraising collateral processing documents/ loan underwriting funding of the loan

recording the debt onto title

3. loan delinquency: 대출 연체율

4. foreclosure: (저당물 반환권 상실) Foreclosure is the legal proceeding in which a bank or other secured creditor sells or repossesses a parcel of real property (immovable property) due to the owner's failure to comply with an agreement between the lender and borrower called a "mortgage" or "deed of trust". Commonly, the violation of the mortgage is a default in payment of a promissory note, secured by a lien on the property. When the process is complete, it is typically said that "the lender has foreclosed its mortgage or lien."

5. yield curve: 

수익률의 기간구조를 나타내기 위하여 이용되는 곡선이다. 어떤 시점에서 다른 조건은 같으나 잔존기간만 다른 채권을 대상으로 횡축에는 자존기간을 택하고 종축에는 수익을 택할 때에 만들어진 곡선이다. 수익률 곡선의 모양을 설명하기 위한 이론으로서 기대이자율 가설, 유동성 프리미엄 가설 등이 있다. 기대이자율 가설에 의하면 장기의 수익률은 투자자가 장래의 기대되는 단기금리의 평균치와 같게 된다. 그러므로 수익률 곡선이 오른쪽으로 내려가 때에는 장래 금리가 인하될 것으로 예상되는 경우이며, 오른쪽으로 올라갈 때에는 장래 금리가 상승할 것으로 예상되는 경우이다. 한 유동성 프리미엄 가설에 의하면 잔존기간이 긴 채권은 유동성이 낮기 때문이다.

6. underwriting standards: 상환보장 기준

7. amortization (상환):

Amortization or amortisation is the process of decreasing or accounting for an amount over a period of time. Particular instances of the term include:

Amortization (business), the allocation of a lump sum amount to different time periods.

Amortization schedule, a table detailing each periodic payment on a loan (typically a mortgage), as generated by an amortization calculator.

8. Negative amortization (마이너스 상환방식): an amortisation schedule where the loan amount actually increases through not paying the full interest

ECONOMIC FOCUS

9. Rio Summit

Conference:  United Nations Conference on Environment and Development (UNCED), Rio de Janeiro, 3-14 June 1992

Informal name The Earth Summit

Host Government: Brazil

Number of Governments participating: 172, 108 at level of heads of State or Government

Conference Secretary-General:  Maurice F. Strong, Canada

Organizers: UNCED (United Nations Conference on Environment & Development) secretariat

Principal themes: Environment and sustainable development

NGO presence: Some 2,400 representatives of non-governmental organizations (NGOs); 17,000 people attended the parallel NGO Forum

Resulting document: Agenda 21, the Rio Declaration on Environment and Development, the Statement of Forest Principles, the United Nations Framework Convention on Climate Change and the United Nations Convention on Biological Diversity

Follow-up mechanisms: Commission on Sustainable Development; Inter-agency Committee on Sustainable Development; High-level Advisory Board on Sustainable Development

Previous conference:  UN Conference on the Human Environment, Stockholm (1972)

10. Kyoto Protocol:

The Kyoto Protocol is an agreement made under the United Nations Framework Convention on Climate Change (UNFCCC). Countries that ratify this protocol commit to reduce their emissions of carbon dioxide and five other greenhouse gases, or engage in emissions trading if they maintain or increase emissions of these gases.

The Kyoto Protocol now covers more than 160 countries globally and over 55% of global greenhouse gas (GHG) emissions.

At its heart, Kyoto establishes the following principles:

Kyoto is underwritten by governments and is governed by global legislation enacted under the UN’s aegis

Governments are separated into two general categories: developed countries, referred to as Annex 1 countries (who have accepted GHG emission reduction obligations); and developing countries, referred to as Non-Annex 1 countries (who have no GHG emission reduction obligations and must submit an annual greenhouse gas inventory).

Any Annex 1 country that fails to meet its Kyoto target will be penalized by having its reduction targets decreased by 30% in the next period.

By 2008-2012, Annex 1 countries have to reduce their GHG emissions by an average of 5% below their 1990 levels (for many countries, such as the EU member states, this corresponds to some 15% below their expected GHG emissions in 2008). While the average emissions reduction is 5%, national targets range from 8% reductions for the European Union to a 10% emissions increase for Iceland. Reduction targets expire in 2013.

Kyoto includes "flexible mechanisms" which allow Annex 1 economies to meet their GHG targets by purchasing GHG emission reductions from elsewhere. These can be bought either from financial exchanges (such as the new EU Emissions Trading Scheme) or from projects which reduce emissions in non-Annex 1 economies under the Clean Development Mechanism (CDM), or in other Annex-1 countries under the JI.

Only CDM Executive Board-accredited Certified Emission Reductions (CER) can be bought and sold in this manner. Under the aegis of the UN, Kyoto established this Bonn-based Clean Development Mechanism Executive Board to assess and approve projects (“CDM Projects”) in Non-Annex 1 economies prior to awarding CERs. (A similar scheme called “Joint Implementation” or “JI” applies in transitional economies mainly covering the former Soviet Union and Eastern Europe).

11. carbon sink:

A carbon dioxide (CO₂) sink is a carbon reservoir that is increasing in size, and is the opposite of a carbon "source". The main natural sinks are (1) the oceans and (2) plants and other organisms that use photosynthesis to remove carbon from the atmosphere by incorporating it into biomass. This concept of CO₂ sinks has become more widely known because of its role in the Kyoto Protocol.