CERs (Certified Emission Reductions)
CERs are emission rights derived from CDM climate protection projects. They can be used in line with EU emission trading in order to fulfil reduction obligations in the second and third trading period up to a certain limit, which is individually defined for each country.
CER Standard product specifications
All Certified Emission Reductions as defined in Article 12 of the Kyoto Protocol that are derived from bilateral projects are considered a CER Standard, i.e., there exists a Letter of Approval (LoA) of the host country and an investor country in accordance with 3/CMP.1, annex, section 40(a) at the time of the CER issuance on a national Annex I register pursuant to the Executive Board Report 18, section 57.
CER Standard
* excluding:
- CERs from nuclear plants
- CERs from land use, land use modification and forestry (LULUCF) activities
Reasons for exclusions
CERs derived from nuclear plants are excluded from trading in accordance with EU Directive 2003/87/EG Article 11 a paragraph 3 (a). The Member States are to refrain from using CERs generated from nuclear facilities to meet their commitments pursuant to Article 3 paragraph 1 of the Kyoto Protocol and in accordance with Decision 2002/358/EG.
CERs derived from land use, land use change and forestry (LULUCF) activities are excluded from trading in accordance with EU Directive 2003/87/EG Article 11 a paragraph 3 (b). Enterprises participating in emissions trading cannot use CERs from these projects in order to fulfil their emission compliance.
Determinants of CER price development
The CER prices are generally based on those of EUAs. Due to a variety of reasons, the price for CERs is mostly lower than the EUA price. This spread makes emission trading eonomically worthwhile for many companies. For instance, liqudity can be generated via an EUA CER-Swap. This means that EUAs are sold and CERs are then purchased at a lower price.
greenlist: CER-Standards
CERs included in the greenlist can be traded on greenmarket.
In order to avoid losses when reselling, CER purchasers can check the greenlist to ensure that the certificates they seek to acquire comply with the highest UNFCCC standard.
To download the greenlist please register or login as a member.
