RRUs are credits issued through the REDD.plus initiative. The platform allows rainforests nations to sell their UNFCCC REDD+ Results (emission reductions and removals from slowing deforestation).
Corporates and investors have come under increasing regulatory, political, and social pressure to realize their Net-Zero climate transition plans and do their part to avert the climate, nature, and biodiversity crises. Internationally Transferred Mitigation Outcomes (ITMOs) are credits traded between countries that count towards their climate pledges or Nationally Determined contributions, but in the view of Clifford Chance lawyers, these credits can indeed legally be traded with private entities.
The first batch of ITMOs from UNFCCC REDD+ will be available to purchase this year. In an interview with Quantum Commodity Intel magazine, Nicky Candler, head of sales at ITMO Capital, which aims to build registries and trading architecture, said that considerable work still has to be done on standardizing contracts, ensuring that trades would need to be fairly simple trade to start with.