Marginal cost of supply of certified emissions reduction

This discussion paper estimates the marginal cost of supplying certified emissions reduction (CER) units from projects registered under the Clean Development Mechanism (CDM) up to 2020, specifically analyzing the potential impact of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

• Without eligibility restrictions, a significant volume of CERs can be supplied to the market at prices under € 1 per unit, with much of this supply coming from projects that would likely continue reducing emissions even without CER revenue.
• If CERs are accepted for CORSIA compliance without restrictions, the demand from international aviation through 2035 is unlikely to significantly change the current price of CERs or the total amount of greenhouse gas abatement.
• To effectively incentivize emission reductions that would not otherwise occur, CORSIA and similar schemes should target demand toward projects at risk of stopping abatement activities and promote the creation of new projects that provide additional reductions.

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} }