Emissions gain credit

A new risk management culture is evolving in the emissions market in Asia, which should reduce carbon-reduction project risk while expanding financing options, finds Catherine Lacoursiere

Two years after the Kyoto Protocol on Climate Change came into effect, a more mature risk management culture is developing in the Asian clean development mechanism (CDM) market. This improved maturity is expected to lead to the true commoditisation of certified emission reductions (CERs) and, ultimately, lower financing costs and more financing options. CERs are credits that count towards a company's - or country's - emission-reduction targets, with one equivalent to one tonne a year of reduced