Clean Coal Plants Qualify for Kyoto Carbon Offsets
Author: Gerard Wynn
"It was approved," he told Reuters on Friday.
China is set to overtake the United States this year as the
world's biggest emitter of carbon dioxide, blamed for global
warming, largely because of its rapidly rising coal consumption.
Under Kyoto rich countries can meet domestic greenhouse gas
emissions goals by buying carbon offsets from emissions-cutting
projects in developing nations, in a scheme meant to cut the
cost of fighting climate change.
Until now the UN's clean development mechanism (CDM) had
mostly financed projects to install renewable energy like wind,
or to destroy powerful greenhouse gases from the chemicals
industry and landfills, especially in China, India and Brazil.
Under the amended rules, power plants in countries where
coal accounts for more than half of all electricity generation
will be able to apply, Miguez said.
One industry expert estimated that some 40 power plants
worldwide may be able to earn CDM credits, or CERs.
Another analyst called the decision 'significant', adding
the potential scale of emissions reductions could be quite high
and plants could attract significant amounts of carbon finance
as a result.
"This should shift (the current CER supply) up by around 50
million...or an extra two or three percent," Ryan McDonagh of
carbon specialists ICECAP told Reuters.
On its website, the UNFCCC reports the current expected
supply of CERs up to 2012 from the more than 2,100 projects in
the pipeline is around 2.2 billion, or around 1 million credits
Secondary CERs currently trade at around 16.50 euros per
tonne of carbon dioxide reduced.
(Additional reporting by Michael Szabo)