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The discount on United Nations greenhouse gas credits compared with European Union allowances shrank to its narrowest level in more than three months as regulators consider a review of hydrofluorocarbon-23 projects.
The UN discount against 2010 EU permits fell 11 percent to 1.87 euros ($2.41) a metric ton, the lowest since April 30, according to the spread contract traded on the European Climate Exchange in London as of 12:31 p.m. local time.
“There has been a request for review of the request for issuance†for three projects that cut HFC-23, a gas blamed for global warming, the Bonn-based secretariat of the UN Framework Convention on Climate Change said in an e-mailed statement today. “The secretariat has already informed all project participants.â€
Credits from HFC-23 projects make up about half the supply of offsets issued in the UN-managed Clean Development Mechanism. The review may limit the supply. The gas is emitted in the production of chemicals for air conditioning and refrigeration, contributing to climate change by trapping heat in the earth’s atmosphere. The gas’s warming effect is 11,700 times more powerful than carbon dioxide.
While the e-mail didn’t name the projects, they are probably the Shandong Dongyue HFC23 Decomposition Project, the China Fluoro HFC-23 project and the Zhejiang Dongyang Chemical Co. project, based on their listed status on the UNFCCC Website, according to Bloomberg New Energy Finance analyst Marisa Beck. The projects requested combined issuance for 5.7 million metric tons of CO2 equivalent, she said.
Their status may be updated when UNFCCC information technology is updated, “hopefully within the next few days,†it said.
The premium of 2010 credits over 2012 contracts surged 12 cents, or 32 percent, to 50 cents a ton, its widest since June 8.
To contact the reporter on this story: Mathew Carr in London at [email protected]
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Discount on UN Carbon Credits Falls as Regulator Considier Supply Review: | Sourced From Bloomberg |
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Discount on UN Carbon Credits Falls as Regulator Considier Supply Review: | Sourced From Bloomberg |
The discount …
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