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Type of credits

AAUs Assigned Amount Units : Annex I Parties are issued AAUs up to the level of their assigned amount, corresponding to the quantity of greenhouse gases they can release in accordance with the Kyoto Protocol, during the commitment period 2008-12.


EUAs European Union Allowances : EUAs are emission permits in the EU ETS. They are currently allocated at the national/state level to the emissions sources. EUAs are tradable between Member States and enterprises in the Member States.


CERs Certified Emission Reduction : CER credits can be acquired with projects in developing countries and emerging markets, i.e. in line with the CDM. Here, an industrialised country invests in a developing country. CERs may be counted towards meeting Kyoto targets of the project-executing country or company or else traded in the market.


Primary CERs (pCERs) : Although there is no standard definition, common understanding of "primary CERs" refers to Certified Emission Reductions that will be issued to a Project Participant in the underlying CDM project. Hereby the underlying purchase contract is custom tailored to match the specific project risks, which is also reflected in the pricing of these CERs. The higher the project risks the lower the purchase price. Such a transaction normally encompasses that the buyer is purchasing a future multi-year stream of CERs that will be issued annually directly into the Buyers holding account at the CDM Executive Board.


Secondary CERs (sCERs) : Generally this term refers to CERs that can be bought or sold based on a standard contract, similar to EU Allowances. Because the Seller or Buyer are investment grade companies, transactions for CERs can be executed without having to worry about any of the risks typically associated with CDM transactions.


ERUs Emission Reduction Units : ERUs are emission certificates issued for emission reduction or emission removal projects in other countries, i.e. upon successful execution of joint implementation (JI) projects. Here, an industrialized country invests in another industrialised country. ERUs can be counted towards meeting Kyoto targets.


EUAAs European Union Aviation Allowances : EUAAs are comparable to EUAs. They are emission permits in the EU ETS and cover the aviation industry.


RMUs Removal Units : RMUs are granted on the basis of land use, land-use change and forestry activities such as reforestation and may be transferred to CO2 allowances as well.

VERs Verified Emission Reductions : A unit of greenhouse gas emission reductions that has been verified by an independent auditor. Most often, this designates emission reductions units that are traded on the voluntary market.