---
title: "Certified Emission Reduction"
subject: "Energy Environment and Society"
chapter: 2
key: "semester_7/energy_environment_and_society:short-note-cer"
source: https://www.bctengineer.com/q/semester_7/energy_environment_and_society/short-note-cer
site: BCT Engineering
---

# Certified Emission Reduction

Energy Environment and Society · Chapter 2: Energy Basics

- Asked in: 2070 Asar, 2 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/energy_environment_and_society/short-note-cer
- Whole chapter: https://www.bctengineer.com/md/semester_7/energy_environment_and_society/chapter-2

## Question

Define Certified Emission Reduction (CER).

## Short answer

A CER is a carbon credit issued under CDM of the Kyoto Protocol for verified emission reductions in a developing country. One CER equals one tonne of CO2 equivalent, issued by the UNFCCC CDM Executive Board after monitoring and verification. It can be sold to industrialised countries to meet targets; prices fell after 2012 and Article 6.4 replaces CDM.

## Answer

A **Certified Emission Reduction (CER)** is a carbon credit issued under the **Clean Development Mechanism (CDM)** of the Kyoto Protocol for verified emission reductions achieved by a project in a developing country.

- **1 CER = 1 tonne of CO₂ equivalent** (CO₂e) reduced or removed.
- It is issued by the UNFCCC CDM Executive Board after the project is registered and its reductions are monitored and verified by an independent Designated Operational Entity.
- Industrialised countries (and companies in emission trading schemes such as the EU ETS) buy CERs and use them to meet their Kyoto targets.
- The seller (project owner in the host country) earns revenue, which helps make clean projects such as hydropower, biogas or forestry financially viable.
- Example: Nepal's biogas programme earned CERs by replacing firewood and kerosene.

CER prices fell sharply after 2012 because of oversupply, and CDM is now being replaced by Article 6.4 of the Paris Agreement.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. A CER is:
   A. a carbon credit under the CDM for verified emission reductions in a developing country
   B. a tax on carbon
   C. a fuel quality certificate
   D. a licence to emit more CO2
   Answer: A. It is issued by the UNFCCC CDM Executive Board for verified reductions. (Key point: CER definition)

2. 1 CER equals:
   A. 1 kilogram of CO2
   B. 1 tonne of CO2 equivalent
   C. 1 MWh
   D. 1 hectare of forest
   Answer: B. One CER is one tonne of CO2e. (Key point: CER unit)

3. Who buys CERs and why?
   A. Developing countries to emit more
   B. Only the UNFCCC
   C. Industrialised countries and companies in schemes like EU ETS to meet Kyoto targets
   D. Local households for cooking
   Answer: C. Buyers use CERs to meet targets while sellers earn revenue that supports clean projects. (Key point: Who buys and uses)