7. What was the cause and consequence of the collapse of CERs prices?
Carbon credits or Certified Emission Reductions (CERs), “were quoted above 20 euros per ton of CO2 equivalent in the first half of 2008, after the global financial crisis fell below 15 euros. However, in mid-2011 they began to register a catastrophic collapse and currently (Oct-2011), CERs are trading around one euro per ton of CO2 equivalent …”. According to information, we take from the site valorsoja.com. The cause of this fall was the economic crisis that began in 2007, whose chronology you can see in this BBC link.
Its consequences have been extended until 2020 and were one of the most controversial points of the COP25 Chile-Madrid 2019, which caused the extension for two additional days of the conference. However, unable to reconcile positions, they had to postpone it for COP26 GLASGOW 2020.
According of Time: “some countries want to be able to carry over old credits that were created under the Kyoto protocol to the new Paris regime. After demand for the Kyoto credits collapsed, billions of potential credits went unsold, while the emissions reductions projects that generated them continued — though often without strong checks on their effectiveness. Countries that host those projects want to be able to use or sell those credits under the new system. Australia, which has generated carbon credits by beating the relatively low emissions target it set under the Kyoto protocol, has said it plans to use those old credits to meet its new emissions targets — provoking vocal opposition from roughly 100 countries this week.”