Carbon Credit Watch

Carbon Credit Watch: First credits for ‘forestry preservation’ cashed in; Philippines argues nuclear power should also qualify

(February 9, 2011) A Kenyan company has become the first recipient of Reduced Emissions from Deforestation and Degradation (REDD) credits.  Meanwhile, the Government of the Philippines argues that carbon credits should be issued for nuclear power.

Bloomberg, February 8, 2011, “Wildlife Works wins world’s first forestry credits”

Wildlife Works Carbon LLC, a U.S. conservation business, said its project to safeguard forests in Kenya was the first of its kind to get voluntary carbon credits.

The program in the Kasigau Corridor, a strip of land 360 kilometers (225 miles) southeast of the Kenyan capital, Nairobi, aims to reduce carbon emissions and help save 500,000 acres (202,000 hectares) of forest, Wildlife Works said today in an e- mailed statement. The Wildlife Works project is the first to get voluntary credits under a forest-protection program known as Reduced Emissions from Deforestation and Degredation, or REDD, it said.

South Africa’s Nedbank Group Ltd. has received credits for its initial funding of the effort and had first rights to buy the credits produced, Kevin Whitfield, head of the African treasuries, carbon and financial products unit at Nedbank, said in a telephone interview from Johannesburg. The project, started in 2005, issued its first certificates last night, he said.

The program has produced 1.1 million of the so-called Voluntary Carbon Units and expects to create 200,000 a year, Gerald Prolman, a San Francisco-based spokesman for Wildlife Works, said in a separate e-mail.

Read full story here. [PDFver here]

Manila Bulletin, February 8, 2011, “Energy executive appeals for carbon credits for nuclear power”

Energy Secretary Jose Rene D. Almendras on Monday made an appeal to the European Union (EU) to allow developing countries, including the Philippines, to earn carbon credits if they intend to construct nuclear power plants.

Almendras called on British Ambassador Stephen Lillie, who was here during the signing of a memorandum of understanding between Mindanao Business Council (MinBC) and an independent peace-building body oversees the implementation of conflict-sensitive business practices to various countries.

“I appeal that if we could make representations to EU that developing countries wanting to lower their carbon emission be allowed carbon credits for at least their first nuclear plant,” Almendras told Mr. Lillie.

Carbon credits refer to tradable permit that is tantamount to the right to emit one ton of carbon dioxide equivalent. It can be used by a business or individual to reduce their carbon footprint by investing in an activity that has reduced or sequestered greenhouse gasses at another site, according the Environment Protection Authority of the Victorian Parliament (EPA Victoria).

Mr. Almendras has sighted conflict in carbon credits as power production is now competing with the production of food.

“I believe there’s a lot of conflict, for example in my district, driers for grain are fueled by by-products of agriculture. We are now competing with plants. There’s a conflict. If you put all the carbon credits, especially the Biofuel Law, it would not compete with food production. But now because of the carbon credits, in sugarcane areas and other areas, the fuel revolution competes with fueling food,” he said.

Read the full story here. [PDFver here]

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