UN May Supply Record Number of Carbon Offsets in November

Supply of United Nations carbon offsets, known as Certified Emission Reductions or CERs, may jump 95 percent in November to the highest total since the mechanism began, according to UN data compiled by Bloomberg.

The executive board of the UN’s Clean Development Mechanism, the body responsible for regulating CERs, is scheduled to deliver more than 52 million metric tons of credits from Nov. 1 through Nov. 29, the UN data show. The schedule for the month isn’t yet complete.

CERs are generated by clean-technology projects in developing countries that reduce pollution compared with a business-as-usual scenario. Factories and power stations participating in carbon markets in the European Union, Australia and New Zealand may use CERs to meet part of their cap on greenhouse-gas emissions.

October deliveries were almost 27 million tons, a jump of 85 percent from September, the UN data show.

Next month’s supply may include 23 million CERs from projects that cut discharges of hydrofluorocarbon-23 and nitrous oxide. These credits will become ineligible in the European market from April. A further 6.2 million credits from such projects are being reviewed by the CDM executive board, and these could be approved for issuance at any time.

Prices for UN credits for December fell to a record 71 euro cents ($0.92) a ton on Oct. 25 on London’s ICE Futures Europe exchange after the CDM executive board said in a letter dated Oct. 22 that it hired additional external experts to handle “historical high” levels of requests for registration of emission-reduction projects and credit requests. The benchmark contract stood at 1.11 euros as of 4:05 p.m.

To contact the reporter on this story: Alessandro Vitelli in London at avitelli1@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

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