March 19, 2012 / 12:20 PM / 8 years ago

EEX to launch new U.N.-backed carbon contracts

* To introduce ERU futures at end of April

* To launch post-2012 CER futures later in March

LONDON, March 19 (Reuters) - The European Energy Exchange (EEX) will launch futures on Emission Reduction Units (ERUs) at the end of April, its first offering of credits issued to emission-reduction projects in industrialised countries under the Kyoto Protocol.

Later in March, EEX will list contracts of Certified Emission Reductions (CERs) with deliveries from 2013 through 2020, the Leipzig-based bourse said in a statement on Monday.

CERs are U.N.-backed carbon credits issued to emissions-reduction projects in developing countries under Kyoto’s Clean Development Mechanism.

The 1997 Kyoto Protocol is the world’s only legally-binding pact that forces most industrialised countries to cut or limit their emissions of climate-changing gases.

The Protocol’s first commitment period runs from 2008 through 2012. U.N. climate negotiators meeting in South Africa last December agreed to extend the pact for at least another five years.

The European Union’s emissions trading scheme, the world’s biggest carbon market, allows companies to the use a limited number of U.N.-backed offsets to comply with EU climate targets.

Launched in 2005, the EU cap-and-trade scheme’s third trading phase starts in 2013 and runs through 2020.

The EU carbon market covers around half of the 27-nation bloc’s carbon dioxide emissions by setting a cap for more than 10,000 power and industrial plants. Airlines using EU airports joined the scheme from the start of this year.

EEX said it will launch a derivatives market for EU Aviation Allowances (EUAAs) on April 30, and reiterated that a spot market for EUAAs will follow by the middle of the year. (Reporting by Jeff Coelho; Editing by Hans-Juergen Peters)

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