What are Certified Emission Reduction (CER) units primarily associated with?

Certified Emission Reduction (CER) units are primarily associated with qualified emissions reductions under the Clean Development Mechanism (CDM). This mechanism was established under the Kyoto Protocol, which aims to provide industrialized countries with a way to meet their greenhouse gas emission reduction targets by investing in emission-reducing projects in developing countries. By creating and trading CERs, these projects, which could involve renewable energy, energy efficiency, or reforestation, contribute to both sustainable development in the host country and emission reductions that the industrialized nations can offset against their targets.

This association with the Clean Development Mechanism highlights the balance between environmental sustainability and economic incentives, making CERs a crucial element in the global strategy for reducing greenhouse gases. The structured approach through which reductions are verified and certified ensures credibility in the emissions reduction market.