|
 
|
||||||||||||||||||||||||||||
| About Tricorona Products & Services Carbon Project Development Investor Relations Media Contact us | |||||||||||||||||||||||||||||
|
  Kyoto ProtocolThe goal of the Kyoto Protocol is to reduce greenhouse gas emissions during the 2008-2012 commitment period by 5% compared with the 1990 level. In order to ensure that environmental investments will achieve the highest marginal benefit, the Protocol makes use of three flexible mechanisms: Emissions trading within Europe encompasses 11,700 plants within the EU ETS (European Union Emissions Trading Scheme). If investments in a plant reduce carbon emission to a level lower than the number of allocated emission allowances, the surplus can be sold to other plants within the trading system. In this way, environmental investments are targeted to where the marginal benefit is the greatest within Europe. CDM and JI projects generate carbon credits that can be used to fulfil the individual plant’s, and thereby the country’s, commitment or the common commitment within the EU ETS. These credits are based on environmental investments in projects that reduce any of the six greenhouse gases mentioned in the Kyoto Protocol (Carbon dioxide, CO2; Methane, CH4; Nitrous oxide, N2O; Hydrofluorocarbons, HFCs; Perfluorocarbons, PFCs; Sulphur hexafluoride, SF6). If the project is registered in accordance with the UNFCCC’s requirements, it can generate Certified Emissions Reductions (CERs) from CDM projects or Emission Reduction Units (ERUs) from JI projects (referred to jointly here as carbon credits). CDM and JI projects therefore allow environmental investments to be targeted to where the marginal benefit is the greatest in countries that have not made commitments to reduce their emissions (non-Annex I countries), or in countries that have a commitment under the Kyoto Protocol (Annex I countries). In order for a CDM/JI project to be registered and generate carbon credits, the project must meet the requirement on additionality. This means that the project would not have been realized without the extra revenue obtained by the sale of carbon credits. In order to achieve additionality in the project, there must be some initial obstacle to implementation that can be overcome by the incentive provided by the carbon credits. |
|
|||||||||||||||||||||||||||
Tricorona AB, Kungsgatan 32, Box 70426, SE-107 25 Stockholm, Sweden, Phone +46 (0)8-506 885 00, Fax +46 (0)8-34 60 80,  |
|||||||||||||||||||||||||||||