Asia requires carbon credits trading platform

24 June 2008 14:35  [Source: ICIS news]

SINGAPORE (ICIS news)--Asia is in need of a regional trading platform to encourage liquidity in certified emission reduction (CER) credits that would in turn support global efforts to reduce greenhouse gases, said analysts on Tuesday.


“A regional trading platform would create initiatives for further Clean Development Mechanism (CDM) projects and provide the much needed liquidity for CER credits,” said Mark Leslie, vice president of the climate solution arm of global energy firm AES, at the Carbonmarkets Asia 2008 Conference in here.


Leslie said CDM would provide continued and sustainable development throughout all business sectors and needed to be part of the solution addressing climate change.


“Buyers don’t want to pay too high a price and sellers don’t want to sell at too low a price, a centralised platform would address this issue. It would also help to keep wealth within the region,” he added.


CDM projects could be implemented in fields like renewable energy, he said, adding the prospective growth of CER markets in Asia should not be ignored.


“However, we are going to experience problems in drawing up a set of operating and trading policies. Settlement, links to financial institutions, all these have to be decided in due time”, said Immanuel Edward Alwin, head of product development and carbon trading at the Asia Carbon Exchange.


CDM is one of the three “flexibility mechanisms” agreed under the Kyoto Protocol, the international framework convention on climate change, with the objective of reducing greenhouse gases that cause climate change.


The protocol, signed in 1997, has prompted discussion with countries that have ratified it, since they are obliged to reduce greenhouse gas emissions by a collective average of 5% below their 1990 levels between 2008-2012.


The two-day Carbonmarkets Asia Conference ends on Wednesday.


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By: Bohan Loh
+65 6780 4359

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