The CO2 market

A B C D E F G H I J K L N O P R S U V W

Emission Reduction Purchase Agreement (ERPA)

Binding purchase agreement signed between buyer (of CERs or ERUs) and seller.

Emission Reduction Units (ERUs)

A unit of emission reductions achieved through a Joint Implementation project. This unit is equal to one metric ton of carbon dioxide equivalent.

Emissions Reductions (ERs)

Emissions reductions generated by a project that have not undergone a validation/verification process, but are contracted for purchase.

Emissions Trading

Emissions Trading allows for transfer of AAUs across international borders or emission allowances between companies covered by a Cap and Trade scheme. However, it is a general term often used for the three Kyoto mechanisms: JI, CDM and emissions trading.

Emissions Trading Scheme

The ETS is the largest multi-national, greenhouse gas emissions trading scheme in the world and is a main pillar of EU climate policy.

ERU

see Emission Reduction Unit.

EU ETS

see European Union Emissions Trading Scheme.

EUA

see European Union Allowance.

European Union Allowances (EUA)

Materialization of the EU ETS quotas, the tradable unit under the EU ETS. One EUA represents the right to emit 1 ton of CO2.

European Union Emissions Trading Scheme (EU ETS)

Trading Scheme within the European Union. The first compliance phase is from 2005 to 2007, while the second compliance phase continues from 2008 to 2012.