Finland is offering to finance a 20 MW wind plant in Estonia in return for the option to buy Estonia's unused C02 credits. The financial value of the deal, the first of its kind in Scandinavia or the Baltic States, amounts to EUR 2.5 million. The contract to build the project has gone to Finnish development company EMP Projects Oy and Denmark's Global Green Energy. The plant is to consist of ten 2 MW turbines in the district of Paldiski, 50 kilometres south of capital city Tallinn. Output is intended to replace 20 MW of oil shale-fired power in the area. Under the agreement, Finland will secure part of Estonia's allowance for CO2 emissions, equivalent to about 500,000 tonnes of emission reductions during the term of the contract, which runs from 2004 to 2012. "Estonia is interested in engaging in further agreements and projects of this type that lead to emissions reductions being sold under Kyoto outside Estonia," says Villu Reilja, Estonia's environment minister.