What Is An ERU (Emission Reduction Unit)?

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“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.”

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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. 

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What Is Climate Change Mitigation?

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“EC. Climate Change Key Terms. Climate change mitigation = Action to reduce the net amount of greenhouse gases released into the atmosphere, and thus help to slow down the process of climate change resulting from human activities.”

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Note from author: Since repetition is the mother of all learning, it is good to remain an eternal student and have an open-mind regarding just about anything. Many things, such as climate change terminology, may seem ordinary, but it is important to understand the very basic issues in order to increase one´s comprehension about an important matter. Even better: if and when you take the time not only to learn new things, but also teach your knowledge to others, you can rest assured that you will personally benefit and learn as well. We learn 95 % of the things we teach others, which is why everyone should not only be a life-long learner but also a teacher whenever possible.

As a repetition, the term climate change mitigation refers to decreasing the net amount of greenhouse gases released through human activities into our atmosphere. Climate and environmental research indicates the amount of polluting greenhouse gases that we release into Earth´s atmosphere through human activities, such as agriculture/farming, transportation/traffic, and all human consumption. To combat this development, businesses and countries now increasingly much invest into clean technologies, such as renewable energy sources, including solar energy. To remove the impact of human-caused greenhouse gases in Earth´s atmosphere, it is necessary for all of us to change our consumption habits, and the way we conduct business, into (more) sustainable solutions.

Connect with me on Twitter @annemariayritys – for climate-related posts only @GCCThinkActTank & to receive my newsletter delivered personally to you, do subscribe to Leading With Passion

What Is Climate Change?

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“EC. Climate Change Key Terms. Climate change = A change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods.”

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Note from author: Climate has changed throughout the history of Earth many times. With a reference to National Geographic Society/Education, climates around the Earth do change, however, with a slow pace. The Earth has, in history, been a warmer place, but has also gone through several ice ages according to research. However, when we now speak about climate change, we refer to human-caused climate change, which has scientifically been proven to be caused by us human beings releasing immense amounts of greenhouses gases into Earth´s atmosphere. These greenhouse gases, invisible to the human eye, contribute to an (artificial) greenhouse effect, warming up the climate around Earth. Unless absorbed e.g. by trees, forests, and plants and transformed by them into oxygen, greenhouse gases continue to warm up our Earth, including warming seas and oceans, causing Earth´s natural balance to shake. This has finally been realized around the world, and is been taken into consideration in e.g. urban planning projects, and in the planting of new trees around the world.

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What Is A Certified Emission Reduction Unit?

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“EC. Climate Change Key Terms. Certified emission reduction unit = Unit generated from a Clean Development Mechanism project activity, certifying an emission reduction of one tonne of carbon dioxide equivalent.”

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A certified emission reduction unit (CER) is an environmental trading product, used as a trading commodity on exchanges worldwide. According to Shell Global, these environmental trading products are an efficient mechanism for businesses and countries to meet their emissions targets and trading possible surpluses. (Shell Global. 2017). For additional information, see United Nations Framework Convention on Climate Change Go Climate Neutral Now!

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What Is A Carbon Offset?

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“EC. Climate Change Key Terms. Carbon offset = A unit of carbon dioxide (CO2) equivalent that is reduced, avoided, or sequestered to compensate for emissions occurring elsewhere.”

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Note from author: As explained in detail in The Guardian´s A complete guide to carbon offsetting, carbon offset schemes allow private persons and businesses to invest in environmental projects worldwide as an effort to balance out carbon footprints. The projects usually take place in developing countries as efforts to reduce future emissions through clean energy technologies or buying and ripping up carbon credits from an ETS (emissions trading scheme). Some schemes are designed to soak up carbon dioxide directly from the air through the planting of trees.

Connect with me on Twitter @annemariayritys – for climate-related posts only @GCCThinkActTank. To receive my newsletter delivered personally to you, do subscribe to Leading With Passion

What Is The Purpose of A Carbon Market?

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“EC. Climate Change Key Terms. Carbon market = Trading system through which countries may buy or sell units of greenhouse gas emissions in an effort to meet their national limits on emissions, either under the Kyoto protocol or under other agreements.”

Note from author: Is it not interesting how countries may TRADE greenhouse gas emissions? It seems that everything is for sale in this world. Even greenhouse gas emissions. Let us work together for a future where greenhouse gas emissions will not have to be traded.

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Cleantech Investments Bring Significant Benefits To Tackle Climate Change

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“European Commission/EU 2050 Roadmap: Additional investments will bring significant co-benefits through innovation, development of new growth sectors, a reduction of resource consumption, less dependency on energy imports, and health benefits.”

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Note from author: The European Union plays a major role in climate funding, not only in Europe, but around the world, supporting e.g. a number of developing countries financially to build sustainable environments/societies. By 2020, at least 20% of the total EU budget will be spent on climate action. This is a significant percentage of the European Union´s budget. (European Commission 2017).

A few useful links to learn more about the European Union´s efforts to tackle climate change and contribute to a sustainable world:

EC Climate Action – International Climate Finance

EC Climate Action – EU demonstrates commitment to developing countries by stepping up climate finance to €17.6 bln

European Environment Agency – Climate change policies

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The EU Aims To Decarbonise The Power Sector By 2050

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“European Commission/EU 2050 Roadmap: The decarbonisation of the power sector should be practically complete by 2050.”

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Note from author: In the European Union, we have very ambitious and clear goals. There are of course variations between different countries, even in Europe. The case is the same all around the world. In the United States for example, the well-known oil state Texas is a forerunner in regard to renewable energy sources, e.g. solar power. California is another state in the U.S.A. that has made a lot of progress in terms of climate action and transforming its economy in a sustainable manner – nevertheless, experts from Silicon Valley have made clear that they are far behind e.g. in comparison to climate actions and sustainable development in Sweden, a leading country in terms of climate issues. Furthermore, there are huge variations between countries in Asia too. In Russia, recycling and environmental issues are at a very poor level, as in so many other countries in Asia. Bhutan has become the world´s first organic nation by taking massive measures to protect the country´s environment, including all that lives, flora and fauna.

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All Sectors Must Contribute To Stop Climate Change

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“European Commission/EU 2050 Roadmap: All sectors of the economy will be required to contribute to the low-carbon transition according to their technological and economic potential.”

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Note from author: The sectors emitting most greenhouse gases and thus polluting our common environment are the energy sector, including transportation, industrial processes and product use; agriculture, land use and forestry, waste management. (eurostat. Greenhouse gas emission statistics). Therefore, a transformation towards renewable energy sources and sustainable agriculture will have major impacts upon the amount of greenhouse gas emissions and pollution. The smarter we plan our consumption, including the packaging of products, and learn how to manage (i.e. recycle) our waste, the better will we protect our environment. The goal is to recycle 100% of ALL waste. In Sweden, this is already almost a reality. Sweden is even IMPORTING waste from around the world and using this waste as fuel for energy production. Many countries could learn a lot from Sweden in terms of waste management.

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Clean Technologies At The Core of Tackling Climate Change

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“European Commission/EU 2050 Roadmap: Clean technologies play an important role. Early actions will save costs later.”

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Note from author: Taking urgent action across societies, by individuals, corporations and every citizen around the world is essential to combat human-caused climate change. It is a fact that changing our consumption habits, including the transformation from environmentally harming technologies to more eco-friendly solutions will save us all from many extra costs now, and in the future. Furthermore, there is no price tag on our environment – if we continue destroying the planet we all live on, without an effort to improve how we consume and live, it will cost us our home planet and affect each and every member of planet Earth.

Connect with me on Twitter @annemariayritys – for climate-related posts only @GCCThinkActTank, and to receive my newsletter delivered personally to you, do subscribe to Leading With Passion.