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Montreal HFC Deal 99% Cheaper Than Kyoto, Lobby Says (Update1)
2010-11-05 15:31:02.285 GMT
(Updates with HFC-23 destruction costs in fourth
paragraph.)
By Catherine Airlie
Nov. 5 (Bloomberg) -- A deal on curbing production of
hydrofluorocarbons, a greenhouse gas blamed for climate change,
under the Montreal Protocol would be 99 percent cheaper than
tackling the same problem in carbon markets, according to an
environmental lobby group.
Nations are meeting in Bangkok from Nov. 8 to discuss ways
to protect the ozone layer, the earth's shield against damaging
sunrays. They will discuss the phasing out and destruction of
stockpiles of HFCs, produced from industrial processes that trap
11,700 times as much heat as carbon dioxide and an agreement to
pay for the destruction of HFC-23.
"These are the most cost-effective, high-yield
opportunities for reducing greenhouse gas emissions in the
world" said Clare Perry, a senior campaigner at the London-
based EIA. "It's senseless to delay and rely solely on the
UNFCCC process when such a significant part of the solution can
be implemented immediately and at far less cost through the
Montreal Protocol."
The Environmental Investigation Agency said it would cost
as much as 11 billion euros ($15 billion) over 30 years to phase
out HFC gases, about 1 percent of the total cost of achieving
the same reduction through the carbon market. It would cost
about 30 million euros to pay for the destruction of HFC-23, a
by-product of making refrigeration not being dealt with under
Kyoto's carbon market, the EIA said.
Limiting Output
The Montreal Protocol was signed in 1987 after scientists
discovered a hole in the earth's ozone. A new deal may make
chemical plants destroy HFC-23. The protocol will discuss
limiting HFC-23 production not covered under the UN's carbon
market, the world's largest carbon crediting program.
The executive board for the UN's Clean Development
Mechanism, created under the 1997 Kyoto Protocol to lower
greenhouse-gas emissions, is increasing its scrutiny of projects
in developing nations that receive credits for destroying HFC-
23. The UN review won't be complete until after the meeting.
The CDM has issued 218.6 million metric tons of credits to
HFC-23-destroying projects since 2005. They are valued at 2.7
billion euros at the average credit price of 12.27 euros a ton
during the past two years.
For Related News and Information:
Top Power Stories: PTOP <GO>
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: Stephen
Cunningham, Alex Devine.
To contact the reporters on this story:
Catherine Airlie at +44-20-7073-3308 or
cairlie@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or
sev@bloomberg.net
