Whats the difference between CER & EUA?
European Union has signed the Kyoto protocol and hence they are bound to reduce the emission levels. Incase they are not able to meet the allocation they got to buy emission credits. For now, they can buy either EUA or CER. EUA and CER are both equivalent of 1 ton CO2. EU-Allowances (EUA) is carbon credits which can be traded in European Union only. EUA can not be delivered from India or any other nation which has not signed the Kyoto protocol and is not bound by the emission guidelines set by UN. Certified Emissions Reductions (CER) can be traded and delivered globally. CER can be used to meet EU-ETS’s compliance (with limitation). The restriction to the CER imports post-2012 is under speculation as long as an international agreement is not reached on Kyoto protocol and emission reduction. That means post-2012 if all countries under UN don’t sign the protocol, CER will not be a valid means to meet EU-ETS’s compliance. The countries abiding to the UN guidelines on emission will not buy
