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Enel Says All Carbon Reduction Projects Meet UN Standards
2010-09-22 11:32:09.975 GMT
By Alessandra Migliaccio and Will Kennedy
Sept. 22 (Bloomberg) -- Enel SA, Italy's largest power
producer, expects all its carbon-reduction projects in the
developing world to meet standards laid down by the United
Nations, Chief Executive Officer Fulvio Conti said.
"The emissions reductions are genuine," Conti said in an
interview at Enel's headquarters in Rome. "We're a serious
company and respect the United Nations regime."
Enel has enough carbon credits to cover emissions this year
and in 2011, Conti said, without specifying whether the company
has bought any in the open market.
The UN body that runs the Clean Development Mechanism,
where polluters in developed countries can earn credits for
cutting emissions in poorer nations, is investigating projects
that stop HFC-23, a waste product from making refrigeration gas.
Such projects typically can reduce emissions at a cost of about
1 euro a metric ton ($1.31), according to Barclays Capital,
entitling developers to an offset valued at more than 10 euros.
Enel's seven largest projects under the UN plan abate HFC-
23 in China and are set to cut emissions by 239 million tons by
2012, according to data compiled by Bloomberg. Those credits
would be valued at 3 billion euros at today's prices.
Barclays Capital analyst Trevor Sikorski said in a note
yesterday he expects the investigations to delay the issuance of
Certified Emission Reductions, or CERs, from the program by
about 30 percent to 100 million tons this year, compared with a
previous forecast.
The affect on carbon credit prices in the European Union
program will be limited because the depressed economy has
reduced power production and dented demand, Barclays said.
For Related News and Information:
Emissions-trading stories: NI ENVMARKET BN <GO>
Today's top energy news: ETOP <GO>
European power-markets home page: EPWR <GO>
--With assistance from Mathew Carr in London, Editors: Jonas
Bergman, Alex Devine
To contact the reporters on this story:
Alessandra Migliaccio in Rome at +39-06-4520-6320 or
amigliaccio@bloomberg.net;
Will Kennedy in London at +44-20-7073-3603 or
wkennedy3@bloomberg.net.
To contact the editor responsible for this story:
Will Kennedy at +44-20-7073-3603 or
wkennedy3@bloomberg.net.
