What is a CER?
CERs or Certified Emissions Reductions are a certificate just like a stock. A CER is given by the CDM Executive Board to projects in developing countries to certify they have reduced green house gas emissions by one ton of carbon dioxide per year. For example, if a project generates energy using wind power instead of burning coal, it can save 50 tons of carbon dioxide per year. There it can claim 50 CERs (as one CER is equivalent to one ton of carbon dioxide reduced). Developed countries buy CERs from developing countries under the CDM process to help them achieve their Kyoto targets. In India income from CERs are not taxed, as of yet. The Chinese government though has decided to tax the revenue from projects.
