The CDM is part of a U.N. treaty to fight climate change, the Kyoto Protocol, whose first commitment period (2008-2012) sets emissions targets for rich nations that drive demand for carbon credits called certified emissions reductions (CERs).

Investors earn CERs for developing clean energy projects in poorer nations. However, the Kyoto Protocol expires in 2012 and talks on a successor have so far failed to make much progress.

Earlier this year, many investors were not very confident that CERs would have a market value after 2012, as concerns grew over the shape or even existence of the CDM after that time.

"Not all CERs will be eligible to 2020. This is old news. But now we are approaching 2012, companies are starting to look at their strategy beyond 2012," said Sascha Lafeld, executive board member at carbon asset manager First Climate.


Read more: http://www.chemanager-online.com/en/news-opinions/headlines/un-carbon-credit-investors-see-prospects-after-2012