Argus Launches Emission Reduction Unit Assessments for Europe

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Jan 06, 2011, 04:55 ET

LONDON, Jan. 6, 2011 /PRNewswire/ -- International energy price reporting agency Argus launched daily spot and forward assessments of over-the-counter secondary emission reduction units (ERUs) on 4 January. The new assessments, published in the daily Argus European Emissions Markets report, cover ERUs to be delivered within two days of the trade, as well as for December 2011, December 2012, and March 2013 delivery.

ERUs are generated under the Kyoto protocol's joint implementation mechanism and can be used for compliance in the EU emissions trading scheme. ERUs can only be generated through the cancellation of a Kyoto protocol assigned amount unit, meaning that only countries with a binding target under the protocol can produce ERUs. Market participants expect Russia to generate the majority of ERUs and market liquidity to increase following Russia's first issuance of ERUs in December.

Liquidity risk has in the past ensured that ERU contracts have traded at a discount to certified emission reduction (CER) contracts, despite ERUs holding the same compliance value as CER credits. But the differential could tighten this year, as ERUs generate increased interest from market participants.

Argus chairman and chief executive Adrian Binks said: "Argus is the first price reporting agency to assess spot and forward ERU assessments. We work closely with the industry to develop meaningful and useful pricing tools and are pleased to have extended our service to companies involved in emissions trading."

For further information contact: Jim Nicholson or Seana Lanigan in London on +44 20 7780 4200 or email [email protected]

About Argus Media

Argus is a leading provider of price assessments, business intelligence and market data on the global crude and products, natural gas, coal, electricity, emissions and transportation industries. It is headquartered in London and has offices in Houston, Washington, New York, Portland, Calgary, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev, Santiago and other key centres of the energy industry. Argus was founded in 1970 and is a privately held UK-registered company. Learn more at www.argusmedia.com.