Procedures: non transparent. Non accountable. To keep cheap
Price: non transparent market. Keeps buyer in control.
- Within EU traded at US$ 27.7/tonne of carbon dioxide equivalent. WB advertises price at US$ 5/ tonne
- In EU, after 2008 the cost of not meeting emissions standards set at 100 Euro/ tonne C02 plus price of carbon credit. This is the upper limit price of the CER’s
- Sellers(south) take all the risks of investment
- Sellers pay the costs of preparation, validation, verification, registration and certification to consulatants, DOE’s and the UNFCCC.
- Sellers sign contracts (Emmission Reduction Purchase Agreements) with penalties for non-delivery of CER’s on the seller
- Yet CER’s are still considered “risky” and get peanuts.