Assigned amount units

Assigned amount units

Articleissues
article =October 2008
orphan = september 2008
expand = september 2008
unreferenced = september 2008

Assigned Amount Units (AAU) is one of the three measurements for measuring defined by the Kyoto Protocol as criteria for annex 1 countries to achieve emission reduction targets. The other two mechanisms are Emission Reduction Units (ERU) and Certified Emission Reductions (CER). AAU is an cap and trade mechanism, and the latter two mechanisms deal with actual project based reduction.

Practical Application

If a company is producing 100 tonnes of CO2, then the Designated National Authority will cap the production at 80 tonnes. If the company is able to reduce the production to 70 tonnes, then the remaining 10 tonnes can be traded in the form of AAU units.

ee also

*Kyoto Protocol
*Green investment scheme


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