By Jan Korselt
PRAGUE, May 27 (Reuters) - The Czech Republic could sell up
to 100 million tonnes of surplus greenhouse gas emissions rights
under the UN-run Kyoto Protocol, and talks are underway to sell
a portion to Japan, a government official said on Tuesday.
A large part of the quota may be offered in an auction later
this year.
Kyoto binds some 37 industrialised nations to limits on
their greenhouse gas emissions between 2008 and 2012, but allows
countries which undercut their caps to sell that unused quota to
other states busting theirs.
European, former communist countries like the Czech Republic
are well within their targets to cut emissions by 8 percent
compared to 1990 levels, because of the collapse of their
smokestack industries -- and carbon emissions -- in the 1990s.
The Czechs have a surplus of 150 million credits, out of
which they could sell around 100 million for a total of at least
1 billion euros ($1.58 billion), Pavel Zamyslicky from the
Environment Ministry's climate change department told Reuters.
The credits, known as Assigned Amount Units (AAUs), are sold
under the Kyoto Protocol scheme, aimed at cutting emissions of
the greenhouse gases blamed for global warming.
JAPAN
Zamyslicky said Japan could buy around 10-20 percent of the
whole amount of credits for sale. The two countries should sign
a memorandum of understanding in the coming days, agreeing on
further negotiations.
He said the price was yet to be negotiated, but it should
exceed 10 euros per credit allowing one tonne of carbon dioxide
emissions.
"We have several potential buyers and Japan is the most
serious one," Zamyslicky said in a telephone interview.
"Ideally some credits could be sold at the turn of the
year," he added.
A source told Reuters last week Japan was also in talks with
Russia and Poland, after signing a memorandum with Hungary.
Trades in AAUs has been limited so far by criticism that
such deals have nothing to do with funding extra emissions cuts,
the main aim of the Kyoto pact, and have been dubbed "hot air"
by environmental groups.
The Czech government says it wants to use the proceeds for
environmental projects such as power production from renewable
sources.
Zamyslicky said the Czechs were in talks with other buyers
such as Finland, Spain, Netherlands and some private companies
interested in buying the unused emissions rights.
The ministry is also considering auctioning part of the 100
million surplus credits in the autumn, he said, but gave no
details.
The remaining 50 million surplus allowances has to be kept
as a reserve and for other environmental projects. Czechs have
the fifth biggest surplus of carbon credits after Ukraine,
Russia, Romania and Bulgaria.
By buying AAUs, countries with higher emissions than their
Kyoto targets can avoid the cost of reducing emissions at home.
Double-click here to see a table of where countries are up
to in meeting their Kyoto targets []
(Writing by Martin Dokoupil, editing by Gerard Wynn)
