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UN Regulator Seeks Authority to Acquire and Cancel CO2 Credits
2010-09-02 11:42:16.610 GMT
By Catherine Airlie and Mathew Carr
Sept. 2 (Bloomberg) -- The regulator of the world's second-
largest carbon market is seeking authority for auditors to
acquire and cancel surplus emission-reduction credits.
United Nations offsets rose 1.6 percent to 13.69 euros
($17.56) a metric ton, the highest price since May 12, in London
today after the executive board of the Clean Development
Mechanism proposed that it have authority to work with auditors
to reduce the supply of credits. The measure, published on its
website, will be considered at the next meeting this month.
The proposed rules may represent "an excessive transfer of
financial liability" onto auditors known as designated
operational entities, Alessandro Vitelli, a London-based analyst
at IDEAcarbon, said today by e-mail. "This may represent a
significant deterrent to carry out DOE business, above all in
the case of larger CDM projects."
UN auditors include Det Norske Veritas Ltd, TUEV SUED and
Bureau Veritas SA. They are hired to check emissions savings at
projects in developing countries that are typically financed by
investors in exchange for tradable credits.
The CDM board, regulators of the UN's carbon market, is
boosting scrutiny after allegations that some developers are
seeking excessive credits from plants that cut
hydrofluorocarbon-23 gases and wind farms in China. They are
assessing whether the methodology for awarding those offsets
should be changed.
For Related News and Information:
Top Energy Stories:ETOP<GO>
--Editors: Mike Anderson, Rob Verdonck.
To contact the reporter on this story:
Catherine Airlie at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Raj Rajendran at +44-20-3216-4083 or
rrajendran4@bloomberg.net
