(BN) EU May Allow Forest Carbon Credits to Fill Gap, BNP Trader Says


EU May Allow Forest Carbon Credits to Fill Gap, BNP Trader Says
2010-11-11 15:23:23.240 GMT

By Mathew Carr
Nov. 11 (Bloomberg) -- The European Union may allow use of
emission credits from forest protection to help fill any gap
from a ban of some industrial-gas credits, a banker at BNP
Paribas SA said.
The EU carbon market may have room in its third phase,
which runs from 2013 to 2020, for credits under a program known
as Reduced Emissions from Deforestation and Forest Degradation,
or REDD, should the bloc restrict industrial-gas credits and
adopt a tighter emission-reduction target for 2020, said
Christian Del Valle, director of environmental markets and
forestry at the Paris-based bank. The region's target is
currently to cut emissions by 20 percent from 1990 levels.
"Policy makers might seek to offer another source of
credits for cost control," Del Valle said yesterday in an
interview at the Climate Finance 2010 conference in London.
"Some member states may be open to allowing REDD in certain
Almost 200 nations are meeting later this month in Cancun,
Mexico, to discuss replacing or extending the Kyoto Protocol,
which runs through 2012, slowing emissions and shifting the
world to low-carbon energy sources. Inclusion of forestry
projects would increase the number of credits available to
polluters to cover greenhouse-gas emissions after 2012.
Some EU officials are saying the bloc reserves the right to
allow additional UN credits into its program, the world's
biggest carbon market, De Valle said. "Doing so would send a
strong signal internationally that Europe is serious about
addressing deforestation in tropical countries."
"There is still some resistance from the east and south"
of Europe to the adoption of a tighter emission target for 2020,
possibly a 25 percent or 30 percent reduction on 1990 levels, he
told the conference earlier.

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--Editors: Mike Anderson, Catherine Airlie.

To contact the reporters on this story:
Mathew Carr in London at +44-20-7073-3531 or

To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net