CDM Watch statement on quality restrictions on the use of industrial gas offsets in the EU ETS

CDM Watch argues that HFC-23 and N2O abatement projects under the Clean Development Mechanism (CDM) create perverse incentives and fail to represent real emission reductions. The organization calls on EU Member States to support a European Commission draft Regulation that bans the use of these credits in the EU ETS from 1 January 2013 and prohibits their banking into Phase 3 to maintain environmental integrity over private investor interests.

• CDM Watch asserts that the Clean Development Mechanism (CDM) contains perverse incentives that have led manufacturers to manipulate the system, resulting in HFC-23 project credits that do not reflect actual emission reductions.
• The organization claims that the issuance of Certified Emission Reductions (CERs) from HFC-23 destruction projects violates the European Union's domestic and international greenhouse gas emission reduction commitments under the UNFCCC, the Kyoto Protocol, and the ETS 2003/87/EC Directive.
• CDM Watch advocates for a strict ban on credits from HFC-23 and N2O (from adipic acid) projects effective 1 January 2013, coinciding with the start of Phase 3 of the EU ETS.
• The statement argues against allowing the banking of HFC-23 and N2O credits into Phase 3 of the EU ETS or allowing investors to exchange them for European Union Allowances (EUAs), describing such measures as cosmetic fixes that would undermine the regulation.

APA

Carbon Market Watch (2011). CDM Watch statement on quality restrictions on the use of industrial gas offsets in the EU ETS. https://carbonmarketwatch.org/publications/cdm-watch-statement-on-quality-restrictions-on-the-use-of-industrial-gas-offsets-in-the-eu-ets/

Chicago

Carbon Market Watch. CDM Watch statement on quality restrictions on the use of industrial gas offsets in the EU ETS. 2011. https://carbonmarketwatch.org/publications/cdm-watch-statement-on-quality-restrictions-on-the-use-of-industrial-gas-offsets-in-the-eu-ets/.

Wikipedia

{{cite press release |author=Carbon Market Watch |title=CDM Watch statement on quality restrictions on the use of industrial gas offsets in the EU ETS |date=20 January 2011 |url=https://carbonmarketwatch.org/publications/cdm-watch-statement-on-quality-restrictions-on-the-use-of-industrial-gas-offsets-in-the-eu-ets/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{carbonmarketwatch2011cdm, author = {{Carbon Market Watch}}, title = {{CDM Watch statement on quality restrictions on the use of industrial gas offsets in the EU ETS}}, publisher = {Carbon Market Watch}, year = {2011}, month = jan, url = {https://carbonmarketwatch.org/publications/cdm-watch-statement-on-quality-restrictions-on-the-use-of-industrial-gas-offsets-in-the-eu-ets/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }