International emissions units are used to measure and trade reductions in greenhouse gas emissions on a global scale.
Certified emission reduction (CER) units
CER units may be held in Australian National Registry of Emissions Units (ANREU) accounts in the Unit and Certificate Registry.
Under the Clean Development Mechanism (CDM), emission reduction projects in industrialised countries could be issued CER units. Each CER unit represents one tonne of carbon dioxide-equivalent (tCO₂-e) emissions abated or sequestered.
Each CER unit has a unique serial number and Kyoto party code combination that identifies the:
- unit as a CER
- Kyoto party that issued it
- Kyoto commitment period it was issued for
- CDM project number of the CER unit.
Following the ANREU system’s disconnection from the International Transaction Log (ITL) in March 2026, CER units were migrated to the registry.
A CER unit held in an ANREU account is personal property for the purposes of:
- chapter 5 of the Corporations Act 2001
- Bankruptcy Act 1966
- the law relating to wills, intestacy and deceased estates
- the Personal Property Securities Act 2009
- Proceeds of Crime Act 2002.
More information on taking security over CER units is available on the Australian Government’s Personal Property Securities Register website.
Under Australian law, you can trade CER units. You should obtain your own professional advice about trading CER units having regard to your own situation.
A CER unit is a ‘financial product’ under the:
This means that people who provide financial services for CER units and related products in Australia may need an AFS licence.
Buying and selling CER units on behalf of another person will also be a ‘designated service’ under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The service provider will have to report suspicious matters or transactions above a specified limit. Except in special cases, the service provider will also have to verify their customer’s identity before trading in CER units.
The value of CER units is determined by the market and may go up or down. A wide range of factors will influence the value, including:
- availability and type of CDM projects
- changes to the international climate change framework
- Australian legislation.
Neither the Commonwealth of Australia or the Clean Energy Regulator, nor any of their officers or related bodies, make any representation or provide any guarantee concerning the future value of CER units.
You can transfer CER units between ANREU accounts within the Unit and Certificate Registry using the Notify the Regulator form in Online Services. CER units can no longer be transferred in the ANREU system or from an ANREU account into a foreign account in a foreign national registry or the CDM registry.
We may restrict transfers within the registry to ensure its integrity; to prevent, mitigate or minimise abuse of the registry; or to prevent, mitigate or minimise criminal activity involving the registry.
CER units can be voluntarily cancelled in the registry upon request using the Notify the Regulator form and will be completed by the Clean Energy Regulator.
For more information how transferring and voluntarily cancelling of CER units see Unit and Certificate Registry guidance.
You should obtain your own professional advice about the tax treatment of CER units having regard to your own situation.
Generally, the following applies to CERs:
- The cost of acquiring a CER unit is tax deductible. The deduction is deferred through the rolling balance method until the year when the CER unit is sold.
- The proceeds of selling a CER unit are assessable income on revenue account in the income year the CER unit is sold.
- Supplies of CER units are GST-free.
- Sellers of CER units are deemed to have received market value for a CER unit in some cases. For example, in transactions between related entities.
Emission reduction units (ERUs)
ERUs were issued for projects registered under the Kyoto Protocol joint implementation (JI) mechanism. ERUs were issued to a country that has helped reduce emissions or enhance carbon sequestration in another country. Like CER units, each ERU represented one tonne of CO₂ reduced. Following the conclusion of the true-up period of the Kyoto Protocol second commitment period, ERUs are no longer held in ANREU accounts.
Removal units (RMUs)
RMUs were issued either in or outside Australia for emissions stored or avoided through eligible human induced land use, land-use change, and forestry (LULUCF) activities, such as reforestation, under the Kyoto Protocol. Each RMU represented one tonne of CO₂ removed from the atmosphere. Following the conclusion of the true-up period of the Kyoto Protocol second commitment period, RMUs are no longer held in ANREU accounts.
Disclaimer
This is a statement setting out a concise description of the characteristics of Certified Emission Reduction (CER) units, Emission Reduction Units (ERUs) and Removal Units (RMUs). This statement is published, and will be kept up-to-date, under section 61 of the ANREU Act. It is not a Product Disclosure Statement within the meaning of Part 7.9 of the Corporations Act 2001.
This statement is general in nature and does not apply to any particular situation, transaction or organisation. It is not legal or financial advice. You should seek your own legal or financial advice with particular reference to your own circumstances and requirements. This statement does not provide specific information or advice concerning, among other things, the detailed characteristics of CER units, ERUs, RMUs, or the costs associated with them, their legal status, their taxation treatment and the potential benefits and risks of dealing in them.
Neither the Commonwealth of Australia nor the Clean Energy Regulator, nor any of their officers or related bodies, make any representation as to the future nature, characteristics or performance of CER units, ERUs or RMUs. Nor can they provide any specific advice concerning CER units, ERUs or RMUs. You may obtain professional advice from a person who holds an Australian Financial Services Licence (AFS licence) that authorises them to provide financial advice in relation to CER units, ERUs or RMUs or is exempt from the requirement to hold an AFS licence for this purpose. You can visit the ASIC website to search the register of AFS licensees for more information on obtaining professional financial advice.
Note that any financial product which is related to or associated with a CER unit, ERU or RMU such as a derivative or a managed investment scheme, may require a Product Disclosure Statement to be provided by the person offering or recommending that financial product.