Marginal cost of supply of certified emissions reduction

The paper analyzes the supply curve of CERs from CDM projects, finding a significant volume of units available below €1 per unit, many of which do not require CER revenues to continue abatement. It concludes that without eligibility restrictions, CORSIA's demand for offsets up to 2035 would likely fail to raise CER prices or increase overall greenhouse gas abatement.

• Without eligibility restrictions, there is a substantial supply of CERs available at prices under €1 per unit, a large portion of which comes from projects that would continue reducing emissions even without revenue from CER sales.
• If the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) accepts CERs without restrictions, its demand for offset credits through 2035 is unlikely to significantly change CER price levels or the total amount of greenhouse gas abatement.
• To effectively incentivize additional emission reductions, CORSIA and similar schemes should target demand toward new projects or existing projects that risk stopping abatement activities if they do not receive CER revenues.

APA

NewClimate Institute (2018). Marginal cost of supply of certified emissions reduction. https://newclimate.org/resources/publications/discussion-paper-marginal-cost-of-supply-of-certified-emissions-reduction

Chicago

NewClimate Institute. Marginal cost of supply of certified emissions reduction. 2018. https://newclimate.org/resources/publications/discussion-paper-marginal-cost-of-supply-of-certified-emissions-reduction.

Wikipedia

{{cite report |author=NewClimate Institute |title=Marginal cost of supply of certified emissions reduction |date=22 March 2018 |url=https://newclimate.org/resources/publications/discussion-paper-marginal-cost-of-supply-of-certified-emissions-reduction |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{newclimateinstitute2018marginal, author = {{NewClimate Institute}}, title = {{Marginal cost of supply of certified emissions reduction}}, institution = {NewClimate Institute}, year = {2018}, month = mar, url = {https://newclimate.org/resources/publications/discussion-paper-marginal-cost-of-supply-of-certified-emissions-reduction}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }