Use Restrictions

Restrictions on the use of credits from certain types of CDM and JI projects for compliance in the EU Emissions Trading System (EU ETS). Use restrictions aim to remove perverse incentives arising from crediting of emission abatements, such as the incentive to continue operation of an otherwise unprofitable production plant merely for generating CERs or ERUs. Use restrictions can be applied as full restrictions or with a multiplier approach.
In particular, as of 1 May 2013 full restrictions apply in the EU ETS for credits from trifluoromethane (HFC-23) projects, and for nitrous oxide (N2O) credits from adipic acid production.

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