Buying Emission Certificates

Buying CERs or AAUs is not the only solution for a company which expects to emit more than the quantity of permits assigned. There is the option of reducing the carbon dioxide emitted by the company through implementation of in-house projects.

In-house projects include measures taken within the emitting facilities with the objective of reducing direct carbon dioxide emissions. These projects can be of different types; they are normally energy-related, although there are some industrial processes which also emit carbon dioxide from chemical reactions other than combustion, where emission reduction projects are feasible. Click on the links below to find out more:

• Background information about In-house Emission Reduction Projects
• View the good practices and other case studies in the SETatWork database

Further information about reducing the levels of emissions by your company can be found in the Reduce CO₂ section of this tool:

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The best way to minimise the cost of participating in the EU ETS is to have a well prepared organisation that manages energy and carbon dioxide together.

In order to achieve this:

• Establish a group and/or assign responsibility for managing energy and carbon dioxide emissions.
• Carry out an education plan for your organization on energy efficiency and carbon dioxide.

View details of consultants and advisors that might be able to assist you in this task in the SETatWork Database.

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Your company should have someone responsible for energy management who ensures that regular energy audits are carried out.

• An external energy audit helps you to identify the possibilities for energy saving, for the use of renewable energy and ways in which you can reduce emissions in your industrial facility.
• Your company should perform periodically energy audits, especially when any process is modified or when you install new equipment
• Your company should also perform energy audits of all your facilities when there are changes in the energy market, for example if there is an increase in energy prices or carbon dioxide markets are created.

It is important to make sure you carry out the recommendations of your Energy Audits. There is a lot of free information available that may help you implement these recommendations, or add further advise to strengthen the inputs.

View the Energy Audit links in the SETatWork Database.

You can find details of consultants and other advisors who may be able to help you with you energy audit in the Database.

Further information about reducing the levels of emissions by your company can be found in the Reduce CO₂ section of this tool:

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As well as in-house measures to reduce energy use and emissions, companies should investigate the possibility offered by CDM and/or JI Projects.

By means of Clean Development Mechanism (CDM) projects in developing countries, which contribute to emission reductions (e.g., replacement of obsolete power plants in Africa ) receive financial support. A project developer can become a company or a country either placed in industrialized and/or in developing country. Project developers by generation of emission reduction credits can either use the credits for their own emission-reduction obligations or sell such certificates on the market.

Find details of project developers in the SETatWork database

Joint Implementation (JI) is a similar mechanism, however it is applied to projects within industrialized countries. The emission reductions generated by JI also can be used to comply with own compliances or can be sold.

For further information click on CDM or JI in the menu at the left of this page.

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Many companies are active in their core business in foreign countries, e.g. they have subsidiaries, partner companies, sales branches, and production sides.

In this case you should prove your opportunities regarding CDM and JI – investing in your own project for instance at your production side or buying certificates via your sales branches or from a market maker.

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Developing your own CDM or JI Project can be beneficial for a company with planned or existing business interests in another country.

Further details be found on the main SETatWork website as follows:

• CDM Projects
• CDM/JI Project Development ( 53 Kb PDF)

You can find examples of successful projects, as well as potential project partners and background information in the SETatWork database:

• Joint Implementation (JI) Links
• Clean Development Mechanism (CDM) Links
• Case Studies
• Partner Search and Project Ideas
• Technology providers
• Consultants including Project developers
• Carbon Market Service Providers

Once you have a project in mind you can make a quick and cost-free assessment of whether your project idea is suitable as a JI or CDM project and whether it is financially viable by:

• taking the FutureCamp JI/CDM Suitability Test
• using the RETScreen International Financial Tool to calculate the costs and earnings of your project

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Before buying emission certificates, your company should consider investing in CDM/JI projects being carried out by another company.

Investment in Funds This is recommended if you need a great amount of certificates for instance for compliance reasons. If you need a small amount of certificates you should ask your own bank or have a look on the relevant exchanges and traders and their websites.

• Find out more about Funds & Finance from the SETatWork database
• Use the Tools and Other Applications listed in the SETatWork database to calculate costs and earnings of a project

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There are 5 main types of emission reduction certificate:

• Certified Emission Reductions (CERs)
• Emission Reduction Units (ERUs)
• Voluntary Emission Reductions (VERs)
• EU-Allowances (EUAs)
• Assigned Amount Units (AAUs)

The document Overview of Certificate Types includes:

• further information about these different types of certificate
• details of the relative importance of these certificates types on the European and world markets
• price ranges for various certificates

Read the Overview of Certificate Types

Use the SETatWork Database to find links to Carbon Market information

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Before your company considers buying certificates or credits you should investigate the following:

Are the reduction costs in your industry so high that reducing energy and carbon dioxide emissions is not an option?
    Check the section on reducing carbon dioxide emissions for more information. Remember that it may be possible to reduce the energy emissions significantly.

Does anyone your industrial sector have lower emissions than your company per produced unit.
    Look at the SETatWork good practice case studies for inspiration and revisit the information on Internal Projects for further guidance.

Do you feel that you need to purchase certificates until your own projects perform?
    Use the SETatWork database to find for further information on European & regional brokers, traders, banks, exchanges

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