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Analyst predicts 2010 recovery for CDM market


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The number of Certified Emission Reduction (CER) offset credits issued under the UN-backed Clean Development Mechanism (CDM) will approximately double next year, according to new research from analyst firm IDEAcarbon.

The report, which is based on CDM project data submitted to the UN’s climate change secretariat, predicts that the total number of CERs issued this year will fall from the 137.8 million tonnes of CO2 equivalent (tCO2e) issued during 2008, to between 118 and 135 million tCO2e.

However, it anticipates that the market will begin to recover next year, with the number of CERs issued reaching at least 235 million tCO2e and potentially rising to 275 million tCO2e.

Speaking to BusinessGreen.com, IDEAcarbon’s director of strategy and information, Alessandro Vitelli, said the report reinforced market whispers that CDM-approved project developers were delaying the release of CER credits until demand recovers.

“The view in the market is that developers have not requested issuance of CERs, despite having projects up and running,” he explained. “They do not want to release CERs when the price is so low and have taken a financial decision to wait.”

Currently, CERs are trading at just over

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