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EU votes to ban carbon credits


It is good news that the European Parliament has voted to ban the use of carbon credits generated from HFC-23 and N20 CDM projects in Phase 3 of the EU’s Emissions Trading Scheme, starting in May 2013. The supply of HFC-based carbon credits is a dominating supply-driver to the EU Emissions Trading Scheme; consequently, it has a significant impact of pricing of EU Allowances (the locally traded carbon credit commodity). By removing the supply of these carbon credits we would expect a real and long-term impact of the pricing of carbon emissions in Europe. A strong, long-term pricing signal will enable more investment funding for CDM projects and a drive by project developers to establish greater number of project in the Least Developed Countries (so called, "LDCs"). We would expect the carbon market to take this news as a positive signal; and also we welcome the certainty that this announcement provides as well. Whilst, not all market players will be happy with this news, we see the opportunity as leading to a second 'golden age' of the carbon markets. -------- Frontier Carbon is an investor in Illumination Headquarters, a solar lamp and carbon credit business, based in Africa (www.illuminationhq.com). We are involved with building carbon trading and clean-tech investment Carbon Trading, We are involved with Carbon Trading , Shameless link. And you may find some of our discussions useful too.

Posted date

24 January, 2011

Posted time

4:29 pm