A Belarusian trade group is trying to sell 2 mn in unregulated Russian ERUs

Unregulated carbon offsets are raising the alarm for all: A scheme by a Belarusian trade group to sell 2 mn of Russian carbon credits from a discontinued United Nations group has been condemned by climate experts and traders and raised concerns over unregulated emissions reduction units (ERUs) corrupting the market, Bloomberg reported this week. Some 2.5 mn ERUs were retired in 2022, most of which were held in Swiss accounts, analysis by Bloomberg News from data filed to the UNFCCC showed. Such credits are pulled out on claims that physical emissions have been offset.

More details: The 2 mn Russian ERUs trying to make its way to the market were generated between 2008 and 2012 from a Siberian forestry program under the old UN Joint Implementation carbon market set up under the Kyoto Protocol, according to Belarusian officials. Pablo Fernandez, the CEO of Switzerland-based project developer and investor Ecosecurities sees the scheme as “surreal,” and warns that further progress could “only be detrimental to the market.”