AirCarbon Exchange (ACX) to Introduce Trading of UNFCCC Certified Emission Reductions (CERs)

AirCarbon Exchange (ACX) is preparing to launch the trading of Certified Emission Reductions (CERs) from the United Nations Framework Convention on Climate Change on its platform. Since the COP26 conference, there has been an increase in CER trading due to their relatively low cost compared to other voluntary credits. The adoption of Article 6 has also provided increased legal certainty, allowing units to be carried over into the Paris framework and used for compliance with national obligations or voluntary climate goals in the private sector.

CERs issued after 2013 can now be carried over into the Paris framework, which has contributed to the growing interest in trading these credits. This week, Quantum observed the price of CP2 CERs issued after 2013 rise to $3.50 per metric ton of CO2 equivalent (tCO2e), up from below $3/tCO2e before COP26. This price is nearly $4 lower than the price of Corsia-eligible credits in the voluntary market, with renewable energy projects assessed at $7.37/tCO2e. The CER credits on ACX will be traded as “buy and retire” tokens, distinguishing them from other contracts currently traded on the exchange.

This announcement follows the recent introduction of the Global Emission Reduction (GER) platform and the launch of the ACX Household Offset Token (HOT), signalling ACX’s commitment to expanding its offerings and facilitating the trading of various climate-related instruments.