Uncertainties cloud CDM market

Looking beyond 2012

Vietnam boats

With the end of Phase II of the European Union's Emissions Trading Scheme (EU ETS) looming, risk managers at European energy companies have two options for meeting their compliance obligations. They can either reduce emissions themselves or buy cheap Certified Emission Reductions (CERs) from the developing world. However, although it is guaranteed that the EU ETS will continue into a third phase post 2012, it is not clear which types of CERs will be accepted into the EU ETS. As the majority of C