First NZ Auction Of Kyoto Carbon Credits

7 April 2008

First NZ Auction Of Kyoto Carbon Credits

Carbon Market Solutions Limited, a leading New Zealand carbon trading company, and Trade Me today announced the first New Zealand auction of Certified Emission Reductions (CERs).

These are the first CERs to enter the New Zealand Emission Unit Register. CERs are Kyoto carbon credits meaning that they can be bought, sold, and traded in countries that have ratified the Kyoto Protocol. This includes the NZ Emissions Trading scheme which is due to get started later this year.

They are gold standard CERs meaning that the CERs have passed the highest possible tests concerning ‘additionality’ and sustainability benefit. The gold standard certification verifies that without additional revenues from the sale of carbon credits, the project would not have proceeded. It is the first time the Kyoto CERs have been transferred from the Swiss national registry to New Zealand.
The CERs come from a 4.5MW biomass power generation project at the Malavalli power plant in Karnataka, India. The project utilizes low-density crop residues (cane trash/coconut frond) and other biomass fuels for the generation of power which is sold to the local grid.

Wayne King, director of Carbon Market Solutions Ltd in New Zealand said `We are delighted to be auctioning the first CERs in the New Zealand Emission Unit Register on Trade Me. We believe this will help kick off a new era of carbon trading in New Zealand.’

``There has been a lot of talk around the difficulties involved in carbon credit trading,’’ said Trade Me’s head of commercial, Mike O’Donnell.

``The beginning of Kyoto credit trading on Trade Me today, shows that it’s not that hard and follows the introduction of VER carbon credit trading on Trade Me late last year and the establishment of the New Zealand Emission Unit Register.’’

ENDS

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