Emissions trading and JI projects with Romania and Bulgaria to begin
The Finnish and Romanian Ministers of the Environment, Jan-Erik Enestam and Sulfina Barbu have signed an agreement between the countries on Joint Implementation of climate-related projects in accordance with the Kyoto Protocol. The agreement also covers cooperation on international emissions trading. An equivalent JI agreement was signed with Bulgaria in Sophia on December 15, 2006, by Ambassador Kauko Jämsén and the Bulgarian Minister of the Environment Dzhevdet Chakarov.
The Kyoto Protocol enables countries to meet some of their greenhouse gas reduction targets by applying the so-called flexibility mechanisms. The aim of these mechanisms is to reduce emissions in as cost-effective a way as possible. Governments and companies can purchase emission reductions generated by projects implemented in other countries. Another option is direct emissions trading between states drawing on the host country's reserve of assigned amount units (AAU).
Finland's objective is to launch JI projects consistent with the Kyoto Protocol flexibility mechanisms in Romania and Bulgaria. Romania and Bulgaria are at the moment considered by the purchasers of emission credits to be most interesting host countries for JI projects. The countries have corresponding agreements or memoranda of understanding with several other buyer countries. The JI projects are primarily projects promoting the use of renewable energy, increasing energy efficiency and the recovery and use of landfill gases.
Finland is prepared to purchase a total of 12 million tonnes of emissions credits in the Kyoto commitment period 2008-2012. The agency responsible for identification JI projects is the Finnish Environment Institute's Finnder Carbon Procurement Programme. Finnder is currently negotiating on projects with Romania. The signing of the official agreement enables these projects to proceed and the emissions reductions they bring can be transferred to Finland.
Finland to join the EBRD Carbon Fund
In addition to bilateral JI projects and emissions trading, Finland can procure emissions credits via the international carbon funds. Finland has decided to subscribe to the European Bank for Reconstruction and Development's Multilateral Carbon Credit Fund by an amount of 10 million euros. The agreement will be signed this week, before Christmas.
Finland's target is to acquire emissions credits amounting to about a million tonnes of CO2 equivalent from countries in the EBRD's operating area in Eastern and Central Europe, Central Asia and Caucasia. Finland is also a member of the World Bank's Protype Carbon Fund and the NEFCO's Baltic Sea Region carbon fund (Testing Ground Facility, TGF).
For further information, please contact: Director, Central and East European Cooperation, Kristiina Isokallio, tel. +358 (0)9 1603 9508, +358 (0)50 5819 618. Senior Adviser Barbara Appel, Finnish Ministry of the Environment, tel. +358 (0)9 1603 9507, +358 (0)50 4101 852. Senior Adviser Laura Saijonmaa, Finnish Ministry of the Environment, tel. +358 (0)9 1603 9509, +358 (0)40 5463 344