National commodity and derivatives exchange Ltd. will launch futures contract for certified emission reduction (CERs) on April 10, 2008. NCDEX is the first exchange in any of the developing countries of the world to launch a futures contract for carbon credit issued under the United Nations Framework Convention on Climate Change (UNFCCC) on its exchange platform. The CER contract will be made available on April 10 for the delivery in December 2008. The subsequent yearly contracts are likely to be launched within two months for delivery in December between 2009 and 2012. The trade size in each lot has been fixed at 500 CERs with a client-wise limit of 11,000 lots. The member-wise limit has been set at 66,000 lots. "Buyers and sellers of CERs will now be able to do price discovery and hedge their price risk on NCDEX. Physical delivery of CERs will also be facilitated where specific delivery requirements of the buyers and sellers will be matched by the exchange for guaranteed deliverable CERs," Narender Rathore, vice president, products group NCDEX said. The CER futures contracts are likely to benefit domestic carbon credit generators as they have been selling CER at 20% of the prevailing price on the European futures trading platform. In the developed world futures contract of CERs are traded on Nordpool, European Climate Exchange (ICE), European Energy Exchange (Eurex) and NYMEX's Green Exchange. Since India has not taken any commitment for emission reduction under any international forum Indian entities are eligible for holding and trading only in CERs and VERs (Voluntary Emission Reduction) as carbon credits. After China, India is the largest supplier of CERs. India will account for 14.69% of the expected annual number of CERs from the registered projects under Clean Development Mechanism (CDM) of UNFCCC.