Green certificate trade combines CDM and EU ETS

15 October 2004 - CO2e.com (a subsidiary of Cantor Fitzgerald, L.P.), the global broker of greenhouse gas (GHG) credits, announced this week that it had facilitated the first publicised legally binding purchase of Clean Development Mechanism (CDM) Certified Emission Reductions (CERs) by a European company.

The CERs have been bought from Brazil for use within the European Union Emission Trading Scheme (EU ETS). CO2e.com worked closely with Brazilian firm Ecoinvest, a world leader in climate change advisory services, to facilitate the transaction. Ecoinvest is developing the documentation necessary to attain the required certification for the project under the UN approval process.

The deal, transacted under the CDM, a market mechanism of the Kyoto Protocol designed to encourage commercial investment in sustainable projects that reduce greenhouse gas emissions in developing countries, involves collaboration between three Sugarcane waste-fired electricity generation facilities in Brazil: Central Energética Rio Pardo LTDA (CERPA), Termoeletrica Santa Adelia LTDA and Usina Barra Grande de Lençóis S.A. A seven-figure volume of CERs from three projects was bundled together for the purpose of negotiating one transaction and was purchased by a leading European company. The CERs will be generated from renewable energy, using sugarcane waste residue as a fuel for electricity cogeneration. This is the first public transaction of CERs by a company in the European Union.

This deal is one of a number that CO2e.com has brokered under the CDM, most recently a transaction in which Agrosuper (a large Chilean pork producer) sold CERs to Canadian and Japanese electricity companies (TransAlta and TEPCO respectively). The CER transactions build on CO2e.com's years of experience in global greenhouse gas emissions offset markets, where it has brokered tens of millions of emissions offsets.

"CO2e.com is dedicated to delivering market-based solutions to help companies manage climate change risk and maximize opportunities," said Corinne Boone, Managing Director, Americas at CO2e.com. "This transaction clearly demonstrates the opportunities that can be achieved via the CDM by bundling together smaller projects to offer a larger volume of CERs to buyers. This in turn enables smaller CDM projects to make significant contributions to reducing GHG emissions and at the same time receive economic benefits. This transaction continues to show the essential part that emissions trading has to play in the world's ability to reduce emissions and benefit both business and the environment."

"CO2e.com is delighted to have brokered another ground-breaking transaction," said Steve Drummond, Managing Director of CO2e.com. "CERs will be an important compliance tool in the European Emissions Trading Scheme, and pioneering deals like this pave the way for the larger volumes that will be needed to enable European companies to manage their compliance risk and grow the global market."

"This trade demonstrates how large multi-national corporations and first class local companies in countries such as Brazil stand to profit from emissions trading," said Carlos de Mathias Martins Jr., Director of Ecoinvest, advisor to the sugar mills in Brazil. "It also illustrates the potential for financing biomass to energy projects in rural areas of developing nations".



Sponsored by FLSmidth

Related Articles

Study: Mexico could install 12,000 MW of wind capacity by 2020

Total installed wind power capacity in Mexico will reach some 12,000 MW by 2020, or 15 percent of the country’s electricity mix.

AES plans solar energy project to power copper mines in Chile

AES Gener SA plans to build a $572 million solar farm in northern Chile as it seeks to boost electricity supply to copper miners in the Atacama Desert.

Follow Power Engineering on Twitter

Latest News

 GE gas engine achieves more than 50% efficiency

GE gas engine achieves more than 50% efficiency

GE (NYSE: GE) Power & Water’s Distributed Power business said the company achieved more t...
 Wärtsilä to deliver Smart Power Generation plant to Kansas municipal utility

Wärtsilä to deliver Smart Power Generation plant to Kansas municipal utility

Wärtsilä has been awarded a contract to supply a 56-MW Smart Power Generation power plant to ...
03/04 Henry Hub Average Natural Gas Spot Prices

03/04 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

MHPS to deliver supercritical-pressure coal-fired boilers to Tanda Power Plant

L&T-MHPS Boilers Private Ltd., a joint venture between Mitsubishi Hitachi Power Systems L...

SwRI receives $9.9Mn from DOE to improve solar plant efficiency

Southwest Research Institute (SwRI) has been awarded $4.9 million by the U.S. Department of E...
 Westinghouse says nuclear fuel performed flawlessly in Ukraine reactor

Westinghouse says nuclear fuel performed flawlessly in Ukraine reactor

Westinghouse Electric said its nuclear fuel “performed flawlessly” at a nuclear power plant i...

Public to weigh in on plan to close part of coal-fired plant

New Mexico regulators are set to take testimony on a plan by the state's largest electric pro...

Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended February 28, 2015.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

ISO to Add Puget Sound Energy to the Energy Imbalance Market

ISO to Add Puget Sound Energy to the Energy Imbalance Market

Walter Energy Notified by NYSE of Non-Compliance With a Continued Listing Standard

Walter Energy Notified by NYSE of Non-Compliance With a Continued Listing Standard

More Than 50 U.S. Utilities to Attend 12th-Annual ARCOS Conference for Crew Callout and Crew Management

More Than 50 U.S. Utilities to Attend 12th-Annual ARCOS Conference for Crew Callout and...

Vivakor Acquires Land Lease in Asphalt Ridge Area in Vernal, Utah for Oil Extraction Technology Operation

Vivakor Acquires Land Lease in Asphalt Ridge Area in Vernal, Utah for Oil Extraction Te...

Envision Solar Announces First Sale of Solar Powered EV Chargers in the Caribbean

Envision Solar Announces First Sale of Solar Powered EV Chargers in the Caribbean

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>