Certified Emission Reduction
Encyclopedia
Certified Emission Reductions (CERs) are a type of emissions unit (or carbon credits) issued by the Clean Development Mechanism
(CDM) Executive Board for emission reductions achieved by CDM projects and verified by a DOE under the rules of the Kyoto Protocol
. CERs can be used by Annex 1 countries in order to comply with their emission limitation targets or by operators of installations covered by the European Union Emission Trading Scheme
(EU ETS) in order to comply with their obligations to surrender EU Allowances
, CERs or Emission Reduction Unit
s (ERUs) for the emissions
of their installations. CERs can be held by governmental and private entities on electronic accounts with the UN.
CERs can be purchased from the primary market (purchased from original party that makes the reduction) or secondary market (resold from a marketplace).
At present, most of the approved CERs are recorded in CDM Registry accounts only. It is only when the CER is actually sitting in an operator's trading account that its value can be monetized through being traded. The UNFCCC's International Transaction Log has already validated and transferred CERs into the accounts of some national climate registries
, although European operators are waiting for the European Commission
to facilitate the transfer of their units into the registries of their Member States.
Temporary CERs and Long CERs are special types of CERs issued for forestry projects. They are two ways of accounting for non-permanence in forestry CDM project activities. Temporary CER or tCER is a CER issued for an afforestation or reforestation project activity under the CDM which expires at the end of the commitment period following the one during which it was issued. Long-term CER or lCER is a CER issued for an afforestation or reforestation project activity which expires at the end of its crediting period.
Clean Development Mechanism
The Clean Development Mechanism is one of the "flexibility" mechanisms defined in the Kyoto Protocol . It is defined in Article 12 of the Protocol, and is intended to meet two objectives: to assist parties not included in Annex I in achieving sustainable development and in contributing to the...
(CDM) Executive Board for emission reductions achieved by CDM projects and verified by a DOE under the rules of the Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
. CERs can be used by Annex 1 countries in order to comply with their emission limitation targets or by operators of installations covered by the European Union Emission Trading Scheme
European Union Emission Trading Scheme
The European Union Emissions Trading Scheme also known as the European Union Emissions Trading System, was the first large emissions trading scheme in the world. It was launched in 2005 to combat climate change and is a major pillar of EU climate policy...
(EU ETS) in order to comply with their obligations to surrender EU Allowances
EU Allowances
EU Allowances are Climate credits used in the European Union Emissions Trading Scheme . EU Allowances are issued by the EU Member States into Member State Registry accounts. By April 30 of each year, operators of installations covered by the EU ETS must surrender an EU Allowance for each ton of...
, CERs or Emission Reduction Unit
Emission Reduction Unit
The Emission reduction unit is a trading unit under the Kyoto Protocol representing a reduction of greenhouse gases under the Joint Implementation mechanism, where it represents one tonne of equivalent reduced....
s (ERUs) for the emissions
Greenhouse gas
A greenhouse gas is a gas in an atmosphere that absorbs and emits radiation within the thermal infrared range. This process is the fundamental cause of the greenhouse effect. The primary greenhouse gases in the Earth's atmosphere are water vapor, carbon dioxide, methane, nitrous oxide, and ozone...
of their installations. CERs can be held by governmental and private entities on electronic accounts with the UN.
CERs can be purchased from the primary market (purchased from original party that makes the reduction) or secondary market (resold from a marketplace).
At present, most of the approved CERs are recorded in CDM Registry accounts only. It is only when the CER is actually sitting in an operator's trading account that its value can be monetized through being traded. The UNFCCC's International Transaction Log has already validated and transferred CERs into the accounts of some national climate registries
, although European operators are waiting for the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
to facilitate the transfer of their units into the registries of their Member States.
Temporary CERs and Long CERs are special types of CERs issued for forestry projects. They are two ways of accounting for non-permanence in forestry CDM project activities. Temporary CER or tCER is a CER issued for an afforestation or reforestation project activity under the CDM which expires at the end of the commitment period following the one during which it was issued. Long-term CER or lCER is a CER issued for an afforestation or reforestation project activity which expires at the end of its crediting period.
See also
- Carbon Emission Reduction TargetCarbon Emission Reduction TargetThe Carbon Emission Reduction Target in the United Kingdom is a target imposed on the gas and electricity transporters and suppliers under Section 33BC of the Gas Act 1986 and Section 41A of the Electricity Act 1989, as modified by the Climate Change and Sustainable Energy Act 2006The original...
(CERT) - Emission Reduction UnitEmission Reduction UnitThe Emission reduction unit is a trading unit under the Kyoto Protocol representing a reduction of greenhouse gases under the Joint Implementation mechanism, where it represents one tonne of equivalent reduced....
- Assigned Amount UnitsAssigned amount unitsAn Assigned Amount Unit is a tradable 'Kyoto unit' or 'carbon credit' representing an allowance to emit greenhouse gases comprising one metric tonne of carbon dioxide equivalents calculated using their Global Warming Potential....
- CDM Gold StandardCDM Gold StandardThe Gold Standard is the world's only independent standard for creating high-quality emission reductions projects in the Clean Development Mechanism Joint Implementation and Voluntary Carbon Market. It was designed to ensure that carbon credits are not only real and verifiable but that they make...
- Voluntary Emissions ReductionVoluntary Emissions ReductionVoluntary Emission Reductions or Verified Emission Reductions are a type of carbon offset exchanged in the voluntary or 'Over-the-Counter' market for carbon credits...