CER/ERU spread to tighten this year, say experts


Increased interest from market participants could lead to tightened spreads between the price of Emission Reduction Units (ERUs) and Certified Emission Reductions (CERs), say analysts.

ERUs are generated under the Kyoto Protocol's joint implementation (JI) mechanism and are used for compliance in the European Union's emissions trading scheme (EU ETS).

The credits are generated through the cancellation of Assigned Amount Units (AAUs), which are permits allocated to countries with binding targets