Finland and Estonia agree on joint implementation project for reducing greenhouse gas emissions
Ministry for Foreign Affairs of Finland
Ministry of the Environment of Finland
Press release 250/2003
10 October, 2003
An agreement on a joint implementation project for reducing emissions of greenhouse gases was signed today in Tallinn by Mr Villu Rejlan, the Estonian Minister of the Environment, and Mr Roberto Tanzi-Albi, Minister Counselor at the Finnish Embassy in Tallinn. Wärtsilä Finland Ltd Biopower has supplied the new power plant in Paide, which replaces the previous oil-fuelled one. Under the agreement, Finland will have the credit for the reduction in greenhouse gas emissions achieved when the new wood-chip power plant is taken into use.
A more detailed project agreement on the purchase of emission reduction units was signed on the same occasion. The contracting parties are the Finnish Ministry of the Environment and the Estonian company hosting the power plant, Oü Pogi. Under this agreement, Finland will buy, in 2003-20012, from Oü Pogi 100 000 tonnes of carbon dioxide emission reduction units at a price of 5.34 euro/tonne.
The project was planned within the framework of the Finnish programme implementing the Kyoto mechanisms. The Finnish CDM/JI Pilot Programme, coordinated by the Ministry for Foreign Affairs, was launched in 1999. The Finnish Environment Institute (SYKE) is responsible for practical activities under the programme. There are several Joint Implementation projects and, in addition, similar projects implemented in developing countries under the name Clean Development Mechanism projects.
The Paide project and the agreements signed today are of international significance, seeing as they contribute to the achievement of the goals of the Kyoto Protocol and facilitate the entry into force of this Protocol.
What is joint implementation?
Joint Implementation, JI, is one of the flexible mechanisms under the Kyoto Protocol. Joint Implementation means that industrial countries may agree on common projects aiming at fulfilling the obligations of the Kyoto Protocol. One party will finance projects or measures reducing the greenhouse gas emissions in another country, and this country will transfer the emission reduction units, in whole or in part, to the investor party by means of an agreement. The host country benefits from the funding and the new technology. For the financing party, joint implementation projects are more cost-effective than domestic emission reduction measures. With regard to mitigating the climate change, it is irrelevant in which country the reductions in greenhouse gas emissions take place.
Further information:
Mínistry of Foreign Affairs, Ms Päivi Kaukoranta, Legislative Counsellor, Head of Treaty Unit, tel. +358 9 1605 5715
Ministry of the Environment, Markus Tarasti, Senior Adviser, International Affairs Unit, tel.+358 9 1603 9502
Finnish Environment Institute (SYKE), The Finnish CDM/JI Pilot Programme, Mr Kari Hämekoski, Programme Manager, tel. +358 40 565 2125
Wärtsilä Finland Oy, Mr Ilkka Heikkilä, General Manager, Business Control, Biopower, tel. +358 40 820 9186
More about the pilot programme: global.finland.fi/english/projects/cdm/(Link to another website.) (Opens New Window)