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EU Should Consider Phasing In Offset Ban, Mercuria's Marcu Says
2010-11-04 12:08:34.819 GMT
By Mathew Carr
Nov. 4 (Bloomberg) -- The European Union should consider
taking three years to phase in any ban on industrial-gas-related
credits from the United Nations instead of halting them abruptly
on 2013, an official at Mercuria Energy Group Ltd. said.
The commission, the EU regulator, said in a May 26 report
that credits from reducing hydrofluorocarbons and nitrous oxide
may be creating "significant windfall profits" for carbon
developers. Regulators of the UN carbon program, the Clean
Development Mechanism, stopped handing out credits on June 2
related to HFC-23, an industrial gas whose warming potential is
11,700 times more powerful than carbon dioxide.
"I believe that a three-year transition period would
provide a good signal for regulatory stability, time for markets
to adjust," said Andrei Marcu, head of policy and regulatory
affairs at Mercuria, the Geneva-based energy and carbon trader,
and former head of the International Emissions Trading
Association. A phase-in would boost trading volume and ensure
that new market instruments can be developed, he said.
The commission said in the May 26 report that it might
require emitters to hand in two industrial gas credits for each
ton of compliance needed, an imposition known as a multiplier.
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>
--Editors: Mike Anderson, Bruce Stanley.
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
