ERU Carbon Credit Supply 43% More Than Announced, Official Says
Supply of Emission Reduction Units has so far exceeded 430 million metric tons, 43 percent more than previously announced on websites belonging to countries including Ukraine and Russia, as well as the United Nations.
Supplies have jumped and may rise above 500 million tons by the end of the year, according to Wolfgang Seidel, chairman of the UN-overseen Joint Implementation Supervisory Committee, who was speaking at a press conference at climate talks in Doha.
The supply figure is about 130 million tons more than figures published by the UN Framework Convention on Climate Change and on websites of supplying nations, Matthew Cowie, an analyst in London for Bloomberg New Energy Finance, said today in an e-mailed note.
ERU credits have plunged 91 percent since the end of November last year, as muted levels of economic production in the European Union trimmed demand, and supply of the credits swelled. Factories and power stations participating in carbon markets in the EU’s cap-and-trade system may use ERUs to meet part of their cap on greenhouse-gas emissions.
They dropped 16 percent today to 47 euro cents on the ICE Futures Europe exchange in London at 3:34 p.m. They fell as low as 40 cents on Nov. 15.
ERU offsets are generated by clean-technology projects in developed countries that reduce pollution in line with limits set by the 1997 Kyoto Protocol.
New Energy Finance boosted its forecast for ERU and Certified Emission Reduction use in the EU market for 2012 to as much as 800 million tons from 450 million tons previously.
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