Creating and issuing ERUs
Emission reduction units (ERUs) are created by Parties by converting assigned amount units (AAUs) or removal units (RMUs), adding a project identifier to the serial number, and changing the type indicator in the serial number to indicate an ERU. The ERUs are first issued into the national registry of the host Party, and then forwarded to project participants.
Prior to their transfer, each Party shall issue ERUs into its national registry by converting AAUs or RMUs previously issued by that Party and held in its national registry. An AAU or RMU shall be converted into an ERU by adding a project identifier to the serial number and changing the type indicator in the serial number to indicate an ERU. Other elements of the serial number of the AAU or RMU shall remain unchanged. The project identifier shall identify the specific Article 6 project for which the ERU is issued, using a number unique to the project for the Party of origin, including whether the relevant reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks were verified under the Article 6 Supervisory Committee (13/CMP.1, Annex, paragraph 29).
The Data Exchange Standards, which represent the current rules for the International Transaction Log (ITL), provide that ERUs allocated to JI projects in the sectors other than the LULUCF sector must be converted from AAUs. This contrasts to the position for LULUCF JI projects, where ERUs are converted from RMUs.
Parties that meet the eligibility criteria to participate in the Track 1 process may issue ERUs to project participants once emission reductions have been verified according to national guidelines:
Where it is considered to meet the eligibility requirements set out in paragraph 21 above, a host Party may verify reductions in anthropogenic emissions by sources or enhancements of anthropogenic removals by sinks from an Article 6 project as being additional to any that would otherwise occur, in accordance with Article 6, paragraph 1 (b). Upon such verification, the host Party may issue the appropriate quantity of ERUs in accordance with the relevant provisions of decision 13/CMP.1 (9/CMP.1, Annex, paragraph 23).
Presumably, Parties using the Track 2 process may issue ERUs to project participants once emission reductions have been verified by an accredited independent entity (AIE) in accordance with the Track 2 guidelines; however, this is not explicitly stated in the rules.