(Updates with another 165k in cancellations announced later on Tuesday)
The UN has cancelled 490,725 CERs from its registry on request from companies and governments, some of which will be used as offsets in South Korea’s emissions trading scheme or the voluntary market.
The voluntary cancellations were made from eight different projects around the world, the UNFCCC website showed, but many of them will re-emerge in different markets as other types of credits.
The biggest single cancellation was from an N2O project in South Korea, where Dongbu Hannong chemicals gave up 147,350 CERs, but will instead get the same amount of Korean Offset Credits (KOCs) that it can sell to emitters covered by the South Korean ETS.
UPC Corporation cancelled 3,394 CERs from the same project, which will also be replaced with Korean offsets.
Environmental asset management firm First Climate requested cancellation of 294,290 CERs in three batches from the Monte Rosa Bagasse Cogeneration project in Nicaragua. The credits will be transferred to the VCS programme, through which they can be sold to emitters seeking to voluntarily offset their emissions.
Energy, renewable and industrial products supplier Numerco voluntarily also cancelled 23,184 CERs from a Honduras wind project to be able to transfer the units to the VCS, under which the credits command higher prices.
The UN Population Fund cancelled 20,915 CERs from a Chinese wind project to cover their business travel and energy, refrigerant, and vehicle use.
Two participants in the Community Development Carbon Fund, Luxembourg and Norway’s Statoil, asked for around 1,000 CERs to be cancelled from a hydro power project in Kenya, while Canada cancelled nearly 600 offsets from a Moldovan biomass project.
Canada had bought the CERs through a fund administered by the IBRD, but asked the bank to cancel all of its contracted credits after it withdrew from the Kyoto Protocol.
By Stian Reklev – firstname.lastname@example.org