Credit

Description

AAU

Assigned Amount Units are emissions credits allocated to governments of countries with abatement targets under the Kyoto protocol. They are tradable between countries.  Most trades that take place will be connected with GIS (Green Investment Schemes).  These schemes require the government selling the credits to invest all proceeds of the sale in environmental projects.

CER

A Certified Emission Reduction is a credit originating from the Clean Development Mechanism (CDM) of the Kyoto Protocol. The credits are generated by projects producing reductions in green house gases relative to what would have occurred if the project activity had not taken place. They originate from countries that have ratified the Kyoto protocol but do not have an abatement target.

ERU

Emission Reduction Units are credits produced by joint implementation projects that result in a reduction in GHG emissions in developed countries with caps under the Kyoto protocol. When ERUs are issued within a country an equivalent number of AAUs have to be cancelled to keep the market whole.

RMU

Removal Units are a carbon credit created under Kyoto and allocated for carbon sink projects such as forestation.  They can be used by governments to meet the Kyoto targets.

EUA

European Union Allowances granted to participants of the European Union Emissions trading scheme

VER

Voluntary Emission Reductions are carbon offsets offered by commercial firms from GHG reduction projects. Typically the purchaser buys credits which are then retired or cancelled on their behalf to offset the carbon they, or their clients have produced. The lack of a firm standard such as the CDM to oversee credit production and cancellation means they trade at a discount to CERs and are viewed by some as being less robust than their Kyoto regulated counterparts.

CDM

Clean Development Mechanism

ITL

International Transaction Log