CERs from Least Developed Countries have significant advantages over offset credits from other geographical regions. These stem primarily from the fact that these projects offer substantially higher social welfare impacts. Consequently CERs from LDCs offer key advantages for investors:
CERs from Least Developed Countries are sure to be eligible for the EU ETS, the biggest emission trading scheme, over the next years
Given the uncertainty about prices of offset credits most investors turn to LDCs to develop new projects as their added value provides for greater price upside potential than other countries on the voluntary market
A growing number of multinational companies have operations in African countries and acknowledge the marketing potential CDM projects from LDCs imply. One of the latest industries to jump on this trend is the aviation sector.