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Mamuni Das

New Delhi, Aug. 25

With an aim to discover price for carbon credits in a transparent manner, CantorCO2e plans to hold an online auction for certified emission reductions (CERs) that have been ‘issued’. CantorCO2e is an European trading house of the Cantor Fitzgerald Group. The auction is likely to be held in a month.

While this is not the first online exchange for trading CERs, the firm has put a quality check by deciding to sell ‘issued’ CERs only.

Issued CERs are those that have been issued to a company by the United Nations Framework Convention on Climate Change (UNFCCC). Each CER stands for one tonne equivalent of carbon dioxide reduction. Asian Carbon Exchange, a Singapore-based firm that conducts online auctions for CERs, accepts projects at various stages of getting certified from the UNFCCC.

The stages include those projects that can potentially earn CERs, but are yet to receive ‘issued CERs’ certification from the UNFCCC.

Having upped the bar for sellers in the auction, CantorCO2e has also devised a mechanism that would filter serious buyers, it feels.

“We hope to attract serious buyers only in this auction as buyers would have to pay a surety amount equivalent to ten per cent of the total notional value for the specified quantity of CERs that they want before participating in the auction,” the CantorCO2e India’s Managing Director, Dr Ram Babu, told Business Line.

In the auction, in case a certain buyer emerges as the successful bidder, then the transaction would be completed within five “banking days”.

In case the buyer does not emerge as a successful bidder, then the amount is returned back within two working days from the date of auction.

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European firm to auction carbon credit online

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