so cers not moving much today/past three days...might that change if issuance fires up? what if issuance stays dead next week? comments my way, cheers
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Mathew Carr, emissions markets, energy reporter. London Bloomberg News ph +44 207 073 3531 yahoo ID carr_mathew
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UN Carbon Board Defers Some Requests for New Credits (Update1)
2010-07-29 12:14:44.882 GMT
(Adds volume in sixth paragraph, price in seventh.)
By Mathew Carr
July 29 (Bloomberg) -- United Nations-overseen regulators
of the world's second-biggest carbon market deferred assessment
of some requests for new credits from projects in developing
nations for two months, as it introduces new procedures.
A group of requests that have been flagged as possibly
requiring a review won't be considered at the meeting of the
Clean Development Mechanism Executive Board in Bonn, Germany,
ending tomorrow and will instead be considered in September, CDM
spokesman David Abbass said in an e-mail.
The board is seeking to boost the productivity of the
program to incentivize projects that curb emissions blamed for
climate change. So-called issuance of new credits, known as
offsets because they help make up for emissions from developed
nations, may this month fall to almost zero, the lowest since
2005, as the board changes its procedures.
"At each meeting, the board typically looks at cases in
which three members have requested a review -- the so-called
request for review cases," Abbass said.
The delay in consideration of these cases this week
"relates to the board's work to develop new procedures for
review of requests for registration and issuance," he said.
Should the board adopt new review procedures at this meeting,
then the cases since a meeting ended May 28 "would be handled
using those new procedures," he said.
Requests for Review
Twenty issuance requests totaling 3.8 million metric tons
of credits that will potentially be put up for review are listed
on the website of the United Nations Framework Convention on
Climate Change.
Those credits would be worth about 45 million euros ($59
million) at today's benchmark price of 11.75 euros a ton for
Certified Emission Reductions on the European Climate Exchange
in London. There are 44 separate requests for a total 18.2
million tons, according to the UNFCCC.
The Carbon Markets and Investors Association, a global
trade group, said July 27 rules governing registration and
issuance of credits may worsen delays rather than shorten them.
The London-based group said in an e-mail that at least one
project was rejected because of "spelling and punctuation
errors, which are irrelevant."
The lack of issuance is causing "a lot of concern among
the membership," Miles Austin, the association's director, said
yesterday by phone.
There may be some issuance today, Abbass said. The board
may consider this week some projects that were already under
review, and requests without problems may proceed automatically
to receive offsets, he said.
The 1997 Kyoto treaty, which places greenhouse-gas limits
on 36 industrialized nations including Japan, Germany and
Russia, spawned the world's two biggest carbon-trading markets.
Developing nations want it extended to keep pressure on richer
nations, which produce most of the heat-trapping gas in the
atmosphere. The European Union wants the U.S. and China in a
deal to even out the burden of environmental law on industries.
For Related News and Information:
Emissions-trading prices EMIT <GO>
Power-market stories NI PWRMARKET <GO>
Today's top energy, environment news ETOP <GO>, GREEN <GO>
--Editors: Rob Verdonck, Bruce Stanley
To contact the reporter on this story:
Mathew Carr in Copenhagen via +44-20-7073-3531 or
m.carr@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
