The green market outside the US is far larger and more complex than the market within the US; therefore the World Green Exchange has been designed to accommodate all participants and commodities in the international arena.
There are currently several types of buyers who populate the international market: large emitters who need to acquire credits to comply with emissions caps; speculative buyers who want to capitalize on the volatility of an immature market; and financial institutions and other organizations seeking to offer their clients new products and services associated with regulatory requirements; and commercial and industrial companies who have voluntarily committed to reducing greenhouse gas emissions (GHG). The supply side is comprised of national governments with allowances to distribute, as well as sponsors of project-based emissions credits. With the 2005 launch of the EU’s Emissions Trading Scheme (ETS), the market for greenhouse gas (GHG) compliance units has expanded greatly.
Carbon commodities take several forms, ranging from government allowances such as EUAs to project-based credits known as Certified Emissions Reductions (CERs), which are generated from Clean Development Mechanism (CDM) projects; and Emissions Reduction Units (ERUs), which are generated from Joint Implementation (JI) projects. Each has a different risk profile and each is valid only in certain jurisdictions and at certain times. The World Green Exchange supports them all. Commodities
Kyoto Emissions Trading Mechanisms - Assigned Amount Units (AAUs)
- Certified Emission Reductions (CERs)
- Emission Reduction Units (ERUs)
European Union Trading Scheme Allowances (EUETS) - EU Emission Allowances (EUAs)
Alberta, Canada Compliance - Emission Reductions Offsets
Voluntary - Voluntary Emission Reductions (VERs)
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