Check out the little file near top of unfccc issuance under reveiw section
---
Sent From Bloomberg Mobile MSG
+------------------------------------------------------------------------------+
UN Emissions Board Will Question All HFC Projects, IETA Says
2010-08-18 17:36:56.757 GMT
By Mathew Carr
Aug. 18 (Bloomberg) -- United Nations-appointed regulators
will probably question all projects seeking emission credits for
reducing hydrofluorocarbon-23 gases, the International Emissions
Trading Association said.
The Clean Development Mechanism Executive Board, backed by
a Bonn-based secretariat, will request reviews for all HFC-23
projects as it questions the method used to determine how many
credits to allot, said Kim Carnahan, policy leader of flexible
mechanisms at the Geneva-based lobby group for emissions
traders.
Regulators will review issuance of credits for a Chinese
HFC plant, the fourth such project this week, the secretariat
said today in a statement on its Web site. It said yesterday it
would review issuances to three other projects.
"They want to go through each issuance with a fine-tooth
comb," Carnahan said by phone. "We should expect delays
in issuance."
Projects that cut HFC-23 gases make up 52 percent of
current supply of credits created under the UN-overseen CDM, the
world's second-biggest carbon market by trading volume after the
European Union's program.
A review may delay each issuance by about two months or
more, said Marisa Beck, an analyst in London for Bloomberg New
Energy Finance. She cited new review procedures adopted by the
board July 30.
The discount for 2010 UN credits against EU permits
narrowed 4.7 percent today to 1.81 euros ($2.33) a metric ton,
the lowest difference since April 30, according to the spread
contract traded on the European Climate Exchange in London as of
6 p.m. local time. It shrank 9.5 percent yesterday.
Issuance Reviews
The request for review of the Changshu 3F Zhonghao New
Chemicals Materials Co. plant, backed by BP Plc, Deutsche Bank
AG, Enel SpA and RWE AG, reflected concerns that such projects
were getting "excessive" credits, the secretariat said. It
additional information, including demand for products made from
the processes that create the greenhouse gas.
HFC-23 is emitted in the production of chemicals for air
conditioning and refrigeration, contributing to climate change
by trapping heat in the earth's atmosphere. The gas's warming
effect is 11,700 times more powerful than carbon dioxide.
Clifford Mahlung, the executive board's chairman, said in
February the regulator's members could not agree how to
approve Chinese renewable energy projects seeking credits.
The board seems to have a "significant governance
problem," Carnahan said. "It's like a hung jury."
'Urgently Investigate'
The U.K. told the executive board to "urgently investigate
accusations" that credits awarded to HFC-23-cutting projects
may not represent actual emission reductions from business as
usual, according to a July 1 letter from Chris Huhne, the U.K's
energy and climate change minister, to Mahlung.
CDM Watch, a Bonn-based environmental lobby group, gave
evidence to the board that the methodology for giving Certified
Emission Reduction credits for HFC-23 destruction was inadequate
and created a perverse incentive to raise HFC-23 production.
The UN Framework Convention on Climate Change secretariat
appointed Lambert Schneider to a role in its emissions-trading
unit. Schneider, who analyzed HFC-23 credits for CDM Watch, will
work in the standard-setting division, the UNFCCC
said today in an e-mailed statement.
For Related News and Information:
Emission market news NI ENVMARKET <GO>
Today's top energy stories ETOP <GO>
European power-markets home page EPWR <GO>
--With reporting by Catherine Airlie in London. Editors: Mike
Anderson, Raj Rajendran.
To contact the reporter on this story:
Mathew Carr in London at +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
