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Certified Emissions Reductions

Carbon Flow

Certified Emission Reductions (CER's) were created under the Kyoto Protocol's Clean Development Mechanism (CDM) to allow industrialised countries to invest in emission reducing projects in developing nations. The CDM projects generate CER's, credits that can then be used to offset emissions on the EU ETS. Once a CER has been issued it carries the same compliance value as an EUA.

Host countries for investment in CDM projects
Host Country $m %share $m, June 2011
China 82011 68.8
India 19057 16.0
Brazil 2181 1.8
Mexico 2174 1.8
Idonesia 1336 1.1
South Korea 935 0.8
Israel 899 0.8
Peru 876 0.7
Chile 864 0.7
Vietnam 709 0.6
Other Countries 8190 6.8
Total 119193 100.0

EUA's

European Union Allowances (EUA's) are emission allowances given to participants in the EU ETS and are traded in a secondary market on the European Climate Exchange (ECX). One EUA gives the holder the right to emit one tonne of CO2. Approximately 2.3bn EUAs have been issued annually to industries covered under the EU ETS.

Carbon Capital "because nature doesn't do bail outs."

Carbon Reduction