The missing link

With several countries now developing emissions trading schemes, UN-supervised project-based emissions credits could become the linking instrument that creates a global price signal for greenhouse gas abatement. But greater standardisation in the market is needed first, finds Oliver Holtaway

Two important trends are taking place in the market for Certified Emissions Reduction (CER) credits, which, if fully realised, could establish CERs as the global greenhouse gas (GHG) currency – and thus potentially become the basis of a global price signal for investment in emissions abatement.

The first, short-term trend is the increased commoditisation and standardisation of the instrument, which