Finland buys Certified Emission Reductions from small hydro project in China
THE FINNISH ENVIRONMENT INSTITUTE
http://www.ymparisto.fi/syke(Link to another website.) (Opens New Window)
MINISTRY FOR FOREIGN AFFAIRS OF FINLAND
Press release 432/2006
27 October, 2006
Finland has signed an Emission Reductions Purchase Agreement (ERPA) with a Chinese company regarding the purchase and transfer of Certified Emission Reductions (CERs) generated by a small-scale hydroelectric project under the Kyoto Protocol's Clean Development Mechanism (CDM). Finland intends to use these CERs to help meet its Kyoto target of stabilising national emissions to the 1990 level during the first commitment period 2008-2012.
The agreement was signed between the Ministry for Foreign Affairs of Finland and the Chinese company, Lingchuan Qinjiamo Hydropower Development Co. Ltd, at the international Carbon Expo Asia 2006 in Beijing, China.
The Qinjiamo small-scale hydroelectric project (7.6 MW) is located in Lingchuan County, in China's south-western province of Shanxi. The project will be commissioned in spring 2009, after which it will generate clean, sustainable electricity to the grid and supply water to the county town. The project will reduce global greenhouse gas emissions by replacing fossil fuel (primarily coal) based electricity production and avoiding the associated emissions that would have occurred in the absence of the project. In addition, the project will contribute to sustainable development and assist with the improvement of living standards, employment opportunities and small-scale industries, as well as increasing the reliability of water and electricity supply.
According to the agreement, Finland will purchase approximately 225 000 CERs generated by the project over the period 2008-2018.
Finland as a buyer of carbon credits
According to the National Energy and Climate Strategy of 2005, Finland aims to acquire ten million tonnes of carbon dioxide equivalent during 2008-2012 through the Kyoto mechanisms. The Qinjiamo project is the ninth – and final – project to be included in the portfolio of the Finnish CDM/JI Pilot Programme. In total, Finland has contracted approximately one million tonnes of carbon dioxide equivalent from the Pilot Programme's projects.
The Pilot Programme gathered experience on the use of the CDM and Joint Implementation (JI) from 1999 until early 2006, when it was succeeded by the Finnish Carbon Procurement Programme (Finnder). The Finnder Programme now manages the Pilot Programme's project portfolio and is also actively seeking to acquire emission reductions from further CDM and JI projects for Finland. The Finnish Environment Institute (SYKE) is responsible for the practical implementation of both the Pilot Programme and the Finnder Programme.
Kyoto Protocol's project-based mechanisms
CDM and JI are project-based mechanisms which enable the sale and purchase of emission reductions that are generated by projects in developing and industrialised countries, respectively. These mechanisms increase the flexibility and cost-effectiveness of meeting Kyoto targets while also supporting sustainable development.
In Finland, there are three ministries responsible for the Kyoto mechanisms: the Ministry of Trade and Industry coordinates; the Ministry for Foreign Affairs is responsible for CDM; and the Ministry of the Environment manages JI and international emissions trading.
For further information: Director Tapio Wallenius, Ministry for Foreign Affairs, tel. +358 9 1605 5590, Project Manager, Juha Seppälä, Finnish Environment Institute, tel. +358 400 284 254, and Chief Administrator Karoliina Anttonen, Ministry for Foreign Affairs, tel. +358 400 876 512