UN Offset Weekly Supply to Reach 22-Month Record in November
Weekly supply of United Nations carbon offsets is due to reach the most in 22 months in the week ending Nov. 9, according to UN data, as supply of European Union permits is set to rise.
The executive board of the UN’s Clean Development Mechanism, the body responsible for regulating Certified Emissions reductions, or CERs, is scheduled to deliver 19 million metric tons of credits that week, according to UN data compiled by Bloomberg. That’s the biggest weekly volume since Jan. 21, 2011, and the third-largest on record, the data show.
Supply of UN offsets rose to 1 billion tons on Sept. 7. Total issuance in October is set to climb to 28 million tons, the seventh-highest month on record, while supply slated to flow between Nov. 1 and Nov. 11 has reached 23 million tons.
Germany, the U.K. and the EU on behalf of 25 other member states will begin to sell permits from a 120 million ton reserve on Oct. 26. The EU’s emissions trading system will be 1.6 billion tons oversupplied by the end of 2012 and the glut won’t disappear until 2016, according to Trevor Sikorski, an analyst at Barclays Plc in London.
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