The collapse in carbon prices means the flagship UN scheme for generating carbon offsets is now delivering a major net reduction in global emissions, according to research backed by the Germany environment ministry.
A large share of emissions reductions by UN Clean Development Mechanism (CDM) projects out to 2020 will not be used to generate carbon offsets for sale, researchers from the New Climate Institute and Ecofys predicted.
Because prices for international carbon credits have fallen to less than €1 per tonne of CO2, many CDM project owners are not undertaking emission reduction verification and credit issuance, and are unlikely to do so in the future.
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