Dubai is targeting a price of $10 for credits it hopes to earn from United Nations emissions offset projects as markets recover, according to the chairman of the government-sponsored Dubai Centre for Carbon Excellence.
“Although markets are suffering, this is perceived as a short-term issue,” Waleed Salman said in an e-mailed response to questions today. Long-term projections “foresee a doubling of such a rate,” he said.
UN Certified Emission Reduction credits have lost 71 percent of their value in the past year. CERs for December delivery closed unchanged at 3.64 euros ($4.63) a metric ton yesterday on ICE Europe Futures in London.
Dubai Electricity & Water Authority, the government-run utility, is among local companies planning to amass credits under the UN’s Clean Development Mechanism as the United Arab Emirates tries to cut emissions. The U.A.E. is the world’s third-biggest per-capita user of resources, after Qatar and Kuwait, WWF International said in its biennial Living Planet report published yesterday.
Dubai is one of the U.A.E.’s seven constituent emirates. All of its projects in the UN Framework Convention on Climate Change’s pipeline could generate a maximum 588,000 CERs a year, according to UNFCCC data compiled by Bloomberg. The CDM generated 320 million CERs last year.