AirCarbon Exchange (ACX) is set to launch the trading of Certified Emission Reductions (CERs) from the United Nations Framework Convention on Climate Change on its platform.
Since COP26, there has been an uptick in CER trading due to their relative low-cost compared to other voluntary credits and increased legal certainty that has allowed units to be carried over with the adoption of Article 6. CERs issued after 2013 can now be carried over into the Paris framework and used for compliance with national obligations or simply retired against voluntary climate goals from the private sector.
This week, Quantum saw CP2 CERs issued after 2013 priced at $3.50/tCO2e, up from below $3/tCO2e before COP26. This is almost $4 below the price of Corsia eligible credits in the voluntary market, with renewable energy projects assessed at $7.37/tCO2e. The CER credits will be a buy and retire type of tokens, different from the other contracts currently traded on the exchange.
This news follows the recent Global Emission Reduction (GER) announcement and launch the ACX Household Offset Token (HOT).
Adapted from an article in Quantum Commodity Intelligence