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EU cap and trade market considering new rules for allowing UN issued carbon offsets in the EU exchange

January 12, 2013

1/11/13, “UN Developed-Country Carbon Drops to Record on EU Ban Proposal,” Business Week, by Ewa Krukowska

United Nations carbon credits for December slumped to their lowest ever after the European Union proposed to ban some offsets imported from countries including Russia unless they undergo additional checks….

The EU proposal seeks to ensure the world’s largest cap- and-trade market is closed as of this year to ineligible international offsets that would represent emission cuts made as of 2013 by nations without new climate goals. Emitters in the EU carbon market are allowed to use the credits as a cheaper way of complying with their pollution quotas.

“Russia and New Zealand would be immediately impacted by the proposed ban, but Ukraine could also become subject to the ban if its Parliament fails to ratify the second commitment period of the Kyoto Protocol,” Andrea Du Rietz, an analyst at New Energy Finance in London, said by e-mail today.

ERUs are generated under the UN Joint Implementation program, which encourages investments in low-carbon energy by industrialized countries in other nations that have emission goals under the Kyoto treaty. The first commitment period under the protocol expired in 2012 and the second will run from 2013 to 2020.

EU nations are scheduled to vote on the proposal included in a draft regulation on the bloc’s carbon registry on Jan. 23.”…via Tom Nelson

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