Carbon Pricing and Markets Update: CDM CERs listed on Carbon Trade eXchange
UN Photo/R Marklin
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UNFCCC CDM carbon credits were listed for trading through a voluntary electronic exchange platform.

A study on CDM CER unit supply potential through 2020 found that the estimated potential supply is considerably lower than ex ante reduction estimates in project design documents for the same period.

A study on CER supply potential published by the NewClimate Institute estimates the potential supply of CERs from projects registered under the CDM from 2013-2020 at 4.7 billion CERs, of which 82% are not deemed vulnerable.

29 August 2017: During July and August, several countries and federal states took steps towards enhancing their emissions trading systems (ETS), including through establishing a new ETS, and linking and increasing the ambition of existing systems. UNFCCC Clean Development Mechanism (CDM) carbon credits were listed for trading through a voluntary electronic exchange platform. A study on CDM Certified Emission Reduction (CER) unit supply potential through 2020 found that the estimated potential supply is considerably lower than ex ante reduction estimates in project design documents for the same period.

In ETS news, the International Carbon Action Partnership (ICAP) reported that the US state of Massachusetts passed a regulation establishing a state-level cap-and-trade system. Starting in 2018, the system, which will cover the state’s electricity sector, will aim to achieve an 80% reduction in greenhouse gas (GHG) emissions from the 21 fossil fuel-based power plants included in the scheme by 2050. ICAP also reported that the EU and Switzerland took further steps to link their respective ETSs, and that nine Northeastern and Mid-Atlantic US states agreed to increase their annual emissions reduction target from 2.5% to 3% in the post-2020 period, which is expected to result in and an additional 30% cap reduction by 2030, relative to 2020 levels. [ICAP Press Release on Massachusetts] [ICAP Press Release on EU and Switzerland] [ICAP Press Release on US Regional Greenhouse Gas Initiative]

The academic journal Global Environmental Politics released an issue dedicated to GHG emissions trading. Articles in the issue focus on, inter alia: lessons from California’s cap-and-trade system; designing ETSs in Australia and New Zealand; and carbon market mechanism governance challenges in Thailand and Viet Nam. [Global Environmental Politics Journal Issue]

A World Bank working paper on the interactions between ETSs and renewable energy standards, based on an economic modeling study of China, launched in August, finds that “the addition of a separate renewable energy standard policy would increase the economic cost for achieving a target level of greenhouse gas mitigation” if “a carbon pricing mechanism is in place.” [World Bank Working Paper Webpage]

Carbon Trade eXchange, a voluntary electronic carbon market exchange, began listing CDM CER credits on its global exchange.

In CDM news, Carbon Trade eXchange (CTX), a voluntary electronic carbon market exchange, began listing CDM CER credits on its global exchange. The listing, which is the result of a collaboration between the UNFCCC and CTX, will “provide a new, global and much needed distribution outlet for project originators and developers” under the CDM for selling and monetizing CERs, according to the UNFCCC. [UNFCCC Press Release]

A study on CER supply potential published by the NewClimate Institute estimates the potential supply of CERs from projects registered under the CDM from 2013-2020 at 4.7 billion CERs, of which 82% are not deemed vulnerable. The study points out that the potential is considerably lower than ex ante reduction estimates in project design documents for the same period, which total 7.7 gigatonnes of carbon dioxide equivalent (Gt CO2eq). [New Climate Institute Publication Webpage]

In other carbon market news, the World Bank’s Independent Evaluation Group (IEG) announced it will conduct an evaluation of the Bank’s support to “carbon finance,” or “activities and support for implementing carbon market mechanisms for GHG mitigation.” [World Bank IEG Approach Paper]

A slide set by the Japanese Institute for Global Environmental Strategies (IGES) presents a proposal on guidance on robust accounting under Paris Agreement Article 6.2 (internationally transferred mitigation outcomes), which covers, inter alia, various types of nationally determined contributions (NDCs), sectors not covered by NDCs, point- and multi-year targets, units issued pre-2020 and double registration/issuance. [IGES Presentation Webpage]

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The SDG Knowledge Hub publishes monthly climate finance updates, which largely focus on multilateral financing and cover, inter alia, mitigation and adaptation project financing news and lessons, institutional events and news, and latest developments in carbon markets and pricing. Past IISD climate finance updates can be found under the tags: Finance Update: Climate Change; and Finance Update: Sustainable Energy.

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