GENEVA (February 7) – IETA today announced the publication of a comprehensive set of standardised Emission Reduction Purchase Agreements (ERPAs) relating to the sale and purchase of carbon credits from reduction and removal projects.
The trade documentation includes a primary ERPA and a contingent secondary ERPA, and is intended to provide a minimum benchmark for transacting emissions reduction and removal credits by including basic provisions relating to the transaction of such credits. Options for addressing the risks entailed are outlined in an accompanying guidance document.
The documents and guidance can be found on the IETA website:
Primary ERPA v1.0
Contingent Secondary ERPA v1.0
“The new documentation represents a step forward in standardisation for voluntary and compliance carbon markets,” said Dirk Forrister, CEO of IETA.
“While initiatives like the Integrity Council for the Voluntary Carbon market are working to establish a new threshold standard for carbon credits, these new trading documents will help develop transparent and reliable legal structures for the trade in carbon credits.”
The new documents represent part of a wider IETA effort to update trade documentation including for secondary market transactions in collaboration with other trade organisations.
Since its foundation in 1999, IETA has promoted carbon trading across the world by informing, advising and helping create the concepts and tools to make efficient and effective market mechanisms a reality. IETA has spearheaded the development of trade documentation since it launched the first Emissions Trading Master Agreement for the EU ETS in 2005.