forgot to send yest
+------------------------------------------------------------------------------+
Kazakhstan Seeks Carbon Trading 'Prize' at Cancun, Vitol Says
2010-10-06 14:36:26.573 GMT
By Nariman Gizitdinov and Matt Carr
Oct. 6 (Bloomberg) -- Kazakstan could win a carbon-trading
"prize" of about $500 million a year should this year's United
Nations meeting in Mexico decide to allow the nation to trade
allowances and issue credits, the head of Vitol Group said.
The country has the potential each year to sell 55 million
so-called Assigned Amount Units and 10 million Emission
Reduction Units, said Ian Taylor, chief executive officer of
Vitol, the world's largest independent oil trader. Offloading
the AAUs at 5 euros each and the ERUs for 10 euros would give
Kazakhstan a total of 375 million euros ($520 million),
according to figures in Taylor's presentation at a conference in
Astana, the country's capital.
Under the United Nation's Joint Implementation program,
projects that reduce greenhouse gases can generate tradeable
emission-reductions units known as ERUs, which developed
countries can use to meet their obligations to cut greenhouse
gases under the 1997 Kyoto Protocol on climate protection.
Kazakhstan would win a "big prize" should it become a
part of the carbon-trading system, Taylor said. The nation needs
to win so-called "Annex B status" in Cancun, Mexico, and
legislate for a solid system overseeing the spending of any
revenue generated from the AAU sales, he said.
That revenue will probably need to be spent on climate-
protection projects because of so-called Green Investment Scheme
rules stemming from the Kyoto pact and because of conditions
inserted into AAU purchase agreements by buyers.
Ukraine's Environment Investments Agency proposed last
month creating a joint carbon market with Russia, Kazakhstan and
Belarus. The World Bank expressed support for the expansion of
carbon markets, the Kiev-based government agency said in an e-
mailed statement on Sept. 22.
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 assistance from Ewa Krukowska in Brussels. Editors: Mike
Anderson, Rob Verdonck.
To contact the reporter on this story:
Nariman Gizitdinov in Astana at +7-727-244-7977 or
ngizitdinov@bloomberg.net
Ewa Krukowska in Brussels at +32-474-620-243 or
ekrukowska@bloomberg.net;
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
