The market for Certified Emission Reductions (CERs) or the carbon credits issued by the UN’s (CDM), when the
Lieberman-Warner bill was amended to make provision for US industries to purchase
international carbon offsets. The prices increased throughout May and their as well..
New concerns over supply of the Kyoto CDM carbon credits, bullish signals on demand and the rising world oil
price have combined to push up the price of issued CERs on the
secondary market by almost 20 per cent since April 30.
The rising CER prices can be attributed primarily to the ever-increasing gas prices, which have led to an increase in demand for coal in Europe. This in turn has rendered EU carbon emissions permits more expensive, affecting the CER secondary market. In addition, the recent earthquake in China -the leading supplier of CERs, has imposed fueling the price hike.
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