RPT-Czech govt approves plan for CO2 credits sale

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Czech government approved a scheme for selling emission credits that could earn the central European country hundreds of million euros to invest into energy savings, the country's environment minister said on Wednesday.

The trading system derives from the 1997 Kyoto Protocol, aimed at cutting emissions of carbon dioxide (CO2) and other greenhouse gases.

Unlike the EU's CO2 allowances trading system, designed for European companies, the sellers and buyers are individual states.

In the trading period of 2008-2012, Czech Republic could sell credits worth estimated 200-300 million euros to industrialized countries like Canada, Australia or Japan, and invest the proceeds into savings in energy production and consumption, the Environment Ministry said.

"It is an instrument that could help us with investments to modernise our energy sector," Environment Minister Martin Bursik said after the cabinet meeting.

He said the detailed scheme including the use of the proceeds should be designed by the end of March 2008.

Unlike many other industrialised countries, Czechs safely meet the Kyoto emission limits. A large part of the country's heavy industry closed down after the end of the Communist era in 1989, reducing emissions.

An environment ministry official said the Czechs hoped to sell their credits before larger countries that have reduced emissions, such as Russia and Ukraine, jump into the market. (Reporting by Jan Korselt; editing by James Jukwey)

Keywords: CZECH EMISSIONS/TRADING

[PRAGUE/Reuters/Finance.cz]