Dec. 6 (Bloomberg) -- United Nations emission credits for December next year were little changed after yesterday rising at the fastest pace in almost a year.
CERs for December 2013 were unchanged at 74 euro cents ($0.97) a metric ton on the ICE Futures Europe exchange in London at 9:23 a.m. They jumped 16 percent yesterday, the biggest gain since Dec. 20. European Union carbon dioxide allowances for December fell 1.6 percent to 6.05 euros a ton.
The EU said yesterday it was considering pressing for shorter crediting periods for greenhouse-gas reduction projects that create CERs, curbing oversupply and improving the UN-overseen Clean Development Mechanism, according to an EU official, who declined to be identified because of policy.
The shorter periods are among measures being considered to improve the environmental integrity of the CDM, the official said. Envoys would probably not decide to limit crediting at Doha talks this week, though perhaps in a year, he said.
CDM projects currently attract credits for 10 years or as many as 21 years.
“Current proposals being discussed in Doha to limit the duration of the crediting period for CDM projects may boost acceptance of offset credits,” Gareth Phillips, chief climate change officer at Sindicatum Sustainable Resources Ltd., said yesterday in an e-mailed response to questions.
Limiting the crediting period will have an impact upon future supply of CERs, he said.
There is a proposal to change how to calculate the average fossil-fuel portion in a regional power grid, he said. That measure may include more renewable energy attached to the grid, potentially cutting supply of CDM credits again, Phillips said.
“These issues can be aired here in Doha and further discussed during the forthcoming review” of the greenhouse gas market’s rules, Phillips said.
The International Emissions Trading Association, a Geneva-based lobby group, is exploring options to help create a fund or funds that may be willing to buy credits and support the market, Dirk Forrister, president of the group, said Dec. 3 at the talks.
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