What are emission reduction units? Before I answer this question, I will first give a brief background about the Kyoto Protocol.

1. What are emission reduction units?
Before I answer this question, I will first
give a brief background about the Kyoto
Protocol.
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The Kyoto Protocol is a legally binding
international agreement that is linked to
the United Nations Framework
Convention on Climate Change. This treaty was negotiated in
December 1997 at the city of Kyoto, Japan and came into force
on February 16, 2005. The major feature of this protocol is that it
sets binding targets for 37 industrialized countries and the
European community for reducing greenhouse gas (GHG)
emissions. The goal is to lower overall emissions from six
greenhouse gases – carbon dioxide, methane, nitrous oxide,
sulfur hexafluoride, HFCs, and PFCs – by 5.2 percent against
1990 levels over the five-year period 2008 to 2012.
The protocol authorized developed countries to engage in
emissions trading in order to meet their emissions targets. Apart
from national measures, the protocol’s market mechanisms
included clean development mechanism (CDM), joint
implementation (JI), and emissions trading. Also known as the
carbon market, emissions trading is the sale of emission
reduction units (ERU), which are earned when a developed
country reduces its emissions below its commitment level.
The emission reduction unit, therefore, is a trading unit under the
Kyoto Protocol. It is, in fact, the basic unit of joint implementation
projects, and it represents a reduction of greenhouse gases. One
ERU represent the successful emissions reduction equivalent to
one tonne of carbon dioxide equivalent (tCO2e). The other units
which may be transferred under the scheme, each equal to one
tonne of carbon dioxide, may be in the form of: a removal unit
(RMU) on the basis of land use, land-use change, and forestry

2. (LULUCF) activities such as reforestation; and a certified emission
reduction (CER), which is generated from a clean development
mechanism project activity.
You see? An emission reduction unit is generated by a joint
implementation project under Article 6 of the Kyoto Protocol.
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