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ECX rules out CERs based on big hydro projects

13 May 2010

The European Climate Exchange has ruled that Carbon Emission Reduction certificates generated by large hydroelectric projects will not be included in its basket of eligible CER types.

Read more: ECX CER carbon ICE

This move maintains the status quo at the exchange — CERs based on the projects have never been eligible for trading.

The decision follows feedback from various parties following a circular on February 8, in which the exchange said it was considering the impact of revising the existing ICE ECX CER Futures and Daily Futures contracts specification to include CERs generated by the projects. It requested feedback by February 24.

Hydroelectric projects can be controversial as some say they destroy natural irrigation systems, damage ecosystems and can involve displacement of people. Carbon Emission Reduction certificates are produced following carbon abatement projects certified by the United Nations. 


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