Brussels, 21/01/2011 (Agence Europe) - Obtaining emissions credits in exchange for investments in projects outside the EU to destroy industrial gases such as HFC-23 (trifluoromethane) and N2O (nitrous oxides) will be outlawed from 1 May 2013.
Representatives of the Member States, meeting in the 'climate change' committee of the EU on Friday 21 January, approved the proposed regulation presented by the European Commission in November 2010 to tidy up the clean development mechanism (CDM) and the joint implementation mechanism (JI) by barring the way to industrial products which, although unquestionably lucrative, jeopardise the environmental integrity of these 'flexible mechanisms' of the Kyoto protocol, thereby damaging the efficiency of the emissions trading system (ETS).
An assessment of these credits carried out by the Commission also revealed that these industrial investments opened up rights to compensatory emissions credits, mainly benefiting industrialised countries at the expense of developing countries, and bringing about a perverse effect by potentially encouraging the production of the said industrial gases.
Connie Hedegaard, the European Commissioner for Climate Action, welcomed the Member States' approval of the proposed regulation. "I very much welcome the committee's decision (…). Not only are some of these credits of doubtful value, continuing to use them is also not in the EU's interest as doing so could discourage host countries from supporting change and more direct action to cut these emissions. Our aim is not to reduce the number of credits available, to ensure the international carbon market is based on a better quality distribution credits".
EU businesses which have obtained offset credits by means of these investments in third countries will continue to be able to use them legally in the ETS until 30 April 2013. If the Parliament does not raise any objections within three months, the regulation will be formally adopted by the Commission. HFC-23 is a byproduct of HCFC 22 (a greenhouse gas which also destroys the ozone layer) and N2O is a gas created in the production of adipic acid. 23 industrial projects to destroy these gases were enough to account for two thirds of all credits generated under the joint implementation mechanism. (A.N./trans.fl)