A dispute has broken out between the UN and China over the proposed withdrawal of carbon credits for the disposal of HFC-23, a by-product from the manufacture of HFC-22.
The move follows a decision by the UN’s Clean Development Mechanism (CDM) Executive Board to revise the rules over disposal and the credits attached to this - it’s claimed that business interests are encouraging unnecessary production of the HFC to claim the credits.
Carbon credits allow rich countries to meet greenhouse gas emission limits by paying for carbon cuts in developing nations - the trade has been dominated by industrial projects, mostly in China and India, which destroy HFC-23.
The decision follows the publication of a European Commission proposal to ban the use of HFC-23 and N20 from adipic acid credits in the EU Emissions Trading Schemes as of January 2013.
China will have received $1.7bn in credits by 2012, which is alleged to be enough to fund all HFC-23 destruction for decades.
However, it’s claimed that stopping funding will harm the interests of developing countries if a ban comes into effect.
Xie Fei, CDM Fund director, has said there should be “consistency and fairness” in the EU’s emission trading policy to ensure a stable carbon market.
“Industrial gas CDM projects contribute a lot to greenhouse gas emission reductions and are beneficial to both buyers and sellers.”
“It is a pity that such projects are facing uncertainties and phasing out due to possible discriminatory policies.
However, Samuel LaBudde, of the Environmental Investigation Agency, said: “The insistence that developed countries continue to squander billions on fake offsets that actually increase production of greenhouse gases is irrational. China is not a victim here.”