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But also…the EU Commission tells it like it is

November 26, 2010

Some more on restricting carbon offset creditss  from HFC23 and N2O gas projects from entering the EU ETS to be used by European companies  for compliance with EU emissions targets….

Specifically, this is from paragraph 7 of the introduction to the proposed decision on qualitative restrictions on carbon offset credits from HFC23 and N2O gas destruction created through the Kyoto Protocol’s Clean Development Mechanism being eligible for use in the EU Emissions Trading Scheme (released yesterday morning):

The use of international credits from projects involving trifluoromethane (HFC-23) and nitrous oxide (N2O) from adipic acid production (hereafter “industrial gas projects”) should be restricted. This is consistent with the October 2009 European Council conclusions urging developing countries, especially the more advanced, to take appropriate mitigation action, and Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions – Stepping up international climate finance: A European blueprint for the Copenhagen deal,”6 encouraging efforts by developing countries to invest in low-carbon technology outside the carbon market based on their respective capabilities. The vast majority of industrial gas projects are located in advanced developing countries with sufficient capabilities to finance those cheap reductions themselves, and the revenues gained from those projects in the past should suffice to finance them.

In other words, the EU is saying “China, you can pay for it yourself. We’ve given you enough cash now to do it, you’ve now got the capacity, so you’re on your own”. 

Fair call. And I like the toughness of the approach. I’m personally sick of the all the tooing and froing which is happening over climate negotiations. So I disagree with the International Emissions Trading Association (an industry lobby group) for example, who say that Connie Hedegaard should wait to bargain something for these restrictions. No, it’s just the right the thing to do, so we do it. Bang. Done. Next topic. The negotiations are already complicated enough. Assuming, the decision is taken like this, it just removes another complication and uncertainty for everyone. Well done, the commission, stop whinging IETA.

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One Comment
  1. I’m in total agreement… these industrial gas projects have hogged the carbon financial flows for far too long. With regards to HFC-23 specifically, it seems far more appropriate to phase its production out under the Montreal Protocol than to have it dilute the integrity of the carbon market. We’ve got to evolve beyond reaching for the low hanging fruit and start taking building a more diversified portfolio of emission reduction projects across a variety of geographical regions. Cheers to the EU Commission for putting it’s foot down on this decision!

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