Gazprom to trade carbon
The FT reported this week that Russian energy giant Gazprom has announced plans to enter the carbon emissions market in a joint venture with Dresdner Kleinwort.
“The joint venture between Gazprombank, part of the Gazprom Group, and Dresdner Kleinwort will invest in projects generating “carbon credits” under the Kyoto protocol, mainly in Russia and eastern Europe.
Analysts have estimated that companies could generate up to 1bn tonnes worth of credits. At current forward prices for 2008 under the European Union’s emissions trading scheme, that would be worth €15bn. “
Olga Babakina said:
This is an example of how investments in clean technology are rewarded under the Kyoto protocol. Gazprom stands to gain an estimated $2.6 billion (€2 bn) in carbon credits from optimizing its own operation - simply by fixing leaks and overhauling its own compressors.
Peter said:
Is that a bad thing, Olga, if it encourages Gazprom to do something it would not otherwise do? I think companies will only act in an environmentally-friendly manner if they have economic incentives to do so.
Olga Babakina said:
Absolutely, what’s climate change about if not profit? The global market for carbon reduction credits is worth more than $20 billion and booming. And its important that companies like Gazprom try to enter the market. Every second ton of carbon emissions in Russia represents wasted energy: this waste is created down the line, from archaic technology in gas and oil pipelines to unregulated full-blast heating in apartment buildings.