What Is An ERU (Emission Reduction Unit)?
“European Commission. Climate Change Key Terms. Emission reduction unit (ERU) = Unit generated from a Joint Implementation activity, certifying an emission reduction of one tonne of carbon dioxide (CO2) equivalent.”
As stated in one of my previous posts, corporations and countries worldwide (can) trade emission reduction units (ERU´s) as commodities to “even out” carbon dioxide (CO2) consumption and through these trading systems provided fund sustainable development projects in developing countries. For more information about ERU´s, see for example Australian Government Clean Energy Regulator where ERU´s are explained in detail.
ERU´s are financial products that are traded as futures on both primary and secondary markets, and the prices vary accordingly. By funding an ERU project the investor trades carbon as a commodity, linked to a specific sustainable development project. See also FERN – Trading carbon: How it works and why it is controversial.
Note from author: This post serves only as learning and informational material and is by no means any kind of investment advice.
Connect with me on Twitter @annemariayritys – for climate-related posts only @GCCThinkActTank & to receive my newsletter delivered personally to you, subscribe to Leading With Passion