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Two funds launched for purchase of CO2 credits from CDM and JI projects
1 August 2004
Two new outlets for sales of C02 emission-reduction credits from wind projects built in developing countries are being opened up in Germany. The state of Hesse has set up a EUR 200,000 fund for "pilot purchase" of CO2 emission credits created by all projects that qualify for inclusion under the Kyoto protocol's Clean Development Mechanism (CDM) or Joint Implementation (JI) programs. The Hessen environment ministry, in co-operation with the KfW bank, has set an end-October deadline for companies to apply for CDM or JI recognition of their projects. As well as wind and other renewable energy developments, rational energy use projects and projects for efficient fossil fuel use in power stations may apply. Meantime, KfW has initiated a separate EUR 10 million climate protection fund (CPF) for the purchase of CO2 emission credits from CDM projects and has issued a first invitation for tenders. JI projects are to be added later. The KfW fund effectively provides a CO2 credit procurement service for smaller municipal utilities and industrial companies. At current prices of EUR 3-4/tonne of CO2 saved, the fund allows for purchase of some 3.3 million tonnes of CO2 credits on behalf of companies using the service.
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